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Article (1) Definitions

In implementing the provisions of this law, the following terms and expressions shall have the meanings assigned to them below unless the context requires otherwise:

Kingdom: The Kingdom of Bahrain.
Minister: the Minister of Finance.
Central Bank or The Bank: The Central Bank of Bahrain
Board: the Board of Directors of the Central Bank
Governor: the Governor of the Central Bank.
Bank :
(1) any corporate body licensed under the terms of this law to accept deposits, advance loans, manage and invest funds with or without providing any other related services.
(2) any person licensed under this law to accept, manage and invest deposits and savings according to the Islamic Sharia'a Principles with or without providing other related services.
(3) any other licencee as approved by the Central Bank.
Stock Exchange: A market licensed by the Central Bank through which securities can be traded according to the provisions of this law.
Bahrain Stock Exchange: The Bahrain Stock Exchange established by Decree No.4 of 1987.
Insurance or Reinsurance Company: Any company licensed under this law to enter into and implement insurance, reinsurance, Takaful or re-Takaful contracts.
Actuary: Any person specializing in insurance calculations and is duly accredited by an internationally recognized authority.
Insurance Consultants: Any person who provides expert consultancy services in the insurance sector, particularly in the area of risk management and assessment, and who can valuate the assets and liabilities of insurance and reinsurance companies as well as the rights and liabilities of both the insurer and the insured.
Surveyors and Estimators: Any person, who inspects and estimates damages and investigates the causes, determines the extent of coverage by the insurance policies, submits proposals to improve the methods of protection against risks and preserve the assets subject of insurance.
Insurance Brokers: Any person acting on behalf of the insured in insurance contracts with insurance companies subject to the provisions of this law.
Insurance Company Agent Any person who acts on behalf of an insurance company in marketing its services and dealing with the insured.
Long-term Insurance: means life insurance and fund accumulation.
Long term Insurance: Life insurance and insurance associated with deposit taking projects for specific purposes.
Long-term Insurance Companies: Insurance companies licensed for long term insurance services.
Insurance Policyholder: The person who, in a given time, is the legal holder of an Insurance Policy including any beneficiary who, under the Insurance Policy, is entitled to a cash payment, a regular payment or any other financial compensation due because of an accident or if the risk specified in the policy has occurred.
Portfolios and Investment Funds: Investment schemes offered and marketed in the form of negotiable securities mainly originated for the purpose of raising funds from the public and investing them in specific schemes on the basis of risk distribution. Shares in such schemes shall be directly or indirectly re-purchased, redeemed or repaid for from the assets of the scheme and according to the interest of the investors in any of such scheme.
Financial Sector Support Institutions: These include institutions licenced for operating clearance houses, settlement of payments, cheques and financial papers, and institutions which are wholly or partly set up by financial institutions in cooperation with the Central Bank in order to provide services of pure financial nature to the financial services industry.
Financial Institutions: Banks, insurance companies, companies dealing in securities, portfolios and investment funds, financing companies, money exchange companies, money brokers and mediators, insurance brokers, mediators of the securities market, consultancy firms dealing in the financial service industry, credit rating firms, Bahrain Securities Market, capital markets, and precious metals and strategic commodities markets, financial sector support institutions, including institutions licensed to provide financial services according to Islamic Sharia'a principles.
Financial Services Industry: All activities carried out by the financial institutions.
Transfer of Business: The transfer of all or part of the business activities, carried out by any licencee, to others together with any associated rights and liabilities.
Deposits: Deposits which are determined by a resolution to be issued by the Central Bank.
Government Debt Instruments: Bonds, warrants, notes and other debt instruments issued by the Government, its agencies or by other public bodies, whose liabilities are guaranteed by the Government.
Securities: Shares and bonds issued by shareholding companies, Government debt instruments, and such other financial instruments as the Central Bank may approve as securities.-
Listing Rules: The rules issued by the Central Bank to regulate the listing and trading of Securities on the Stock Exchange.
Listed Company: Any company whose securities are listed in the Stock Exchange according to Article (86) of this law.
Loan: Money advanced by a lender to others, to be repaid at a later date, with or without interest.
Market Contract: A contract concluded in accordance with the regulations of the Central Bank and Paragraph (a) of Clause (108) of this law.
Market Maker: Any person licensed by the Central Bank to sell and buy in the Stock Exchange to encourage trading in this market.
Regulated Services: has the meaning set out in Article 39 of this law.
Netting: means the conversion of a group of claims and obligations of any licencee into one net debit or credit balance..
Settlement System: means a system for the settlement of any party's payments or obligations arising from transactions in cheques and securities.
Payment System: means any system for the settlement of cash payments or bank transfers between licencees.
Licencee: means any person licensed by the Central Bank to provide any of the regulated services.
Foreign Authority:

means:

(a) the authority involved in the regulation of the financial service markets in another country.
(b) any foreign central bank or body with the authority of issuing money or responsible for supervising payment systems, clearances, or cheques and financial papers settlement.
Person: any natural or corporate person.


 Versions
(1 Version)
 
Sep 7 2006 onwards
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