New rules for REITs to list on Bahrain Bourse
MANAMA, April 28, 2015
Real Estate Investment Trusts (REITs) wanting to list on the Bahrain Bourse (BHB) must have minimum asset value of $20 million or its equivalent in another currency, it was announced yesterday (April 27).
A statement said BHB chairman Yusuf Abdulla Humood issued a resolution on adopting the REIT Listing Rules at Bahrain Bourse as of Sunday, May 17, said a report in the Gulf Daily News (GDN), our sister publication.
The rules, published on BHB's website include the pre-requisites that the REIT has to satisfy in order to be admitted for listing on the bourse and ensure that they meet the Central Bank of Bahrain's requirement pursuant to the Financial Trust Law No (23) of the Year 2006 and Volume 7 of the CBB Rulebook and the rules issued by Bahrain Bourse on REITs.
The rules stipulate the listing requirements that the REIT should comply with at the time of making an application for listing.
The rules also state that the REIT or share registrar appointed by the trust shall maintain a register of unit holders.
In addition, the rules specify the ongoing obligations that the REIT has to comply with following its listing at BHB, including directives, circulars, instructions as may be issued by BHB from time to time on the subject of REITs, as well as any disclosures of any information related to the REIT.
The rules also stipulate that the REIT shall take all reasonable care to ensure that the sale, issue, repurchase effected by a REIT are carried out in accordance with the provisions of the prospectus and the REIT listing rules as well as Volume 7 of the CBB Rulebook and the rules issued by Bahrain Bourse.
The rules stipulate that the REIT shall ensure investor reports published shall be made available on BHB's website and in accordance with the disclosure requirements prescribed by the CBB and Bahrain Bourse on REITs.
The listing rules are applicable to both Sharia-compliant REITs as well as conventional REITs, and both individual and institutional investors are allowed to list and trade REITs. - TradeArabia News Service
