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BC-7.2.7

Past version: effective from Oct 1 2007 - Dec 31 2010.
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Only standard-form documents (application forms and agreements) will be used for the System. Standard-form agreements, drafted and approved in advance by the BSE, will be entered into between the participating bank and the investor (in respect of financing), and between the participating bank and the investor and the broker (in respect of trading) and, as relevant, these agreements shall (amongst other things) confirm that:

a. The investor is borrowing or financing a stated amount from the participating bank for the purpose of taking part in the System;
b. The investor will repay such stated amount, together with any interest or charges thereon, when due and in accordance with the agreement;
c. The investor understands the risks involved in margin trading as well as the implications of the undertakings given by him;
d. The participating bank can sell the securities bought through the System if the relevant margin is called and not met, without further formalities being required;
e. The broker is liable for marking the securities to market on a daily (or more frequent) basis and for keeping the participating bank updated as to the participating bank's exposure to the investor;
f. The investor can place orders with the broker for the purchase of securities up to the limit permitted by the agreement;
g. Each party to the agreement in question shall abide by the duty of confidentiality imposed on him in relation to the matters set out in the agreement; and
h. There is an overriding obligation on the parties thereto to comply with Bahrain law in general and, in particular, with the share-ownership restrictions applying to certain types of securities.

October 07
 Versions
(2 Versions)
 
Oct 1 2007 - Dec 31 2010Jan 1 2011 onwards
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