DUBAI - Bahrain is looking at setting up a new company to run the Bahrain Stock Exchange due to a conflict of interest in the central bank overseeing the bourse, the local Gulf Daily News reported on Tuesday.The Central Bank of Bahrain (CBB) currently operates and supervises the exchange, which breaches its own and national laws, the newspaper reported, citing CBB governor Rasheed al-Maraj.
Maraj said the new company will be licensed by the Ministry of Industry and Commerce and supervised by the central bank, the paper reported.
"We had to come up with a new idea to move the Bahrain Stock Exchange from under our authority, considering that the CBB is there to monitor the stock exchange and not run it as is being done now," he was quoted as saying.
Maraj also said there are plans to launch specialised stock exchanges, with a food stock exchange “in the pipeline”.
He said “different stock exchange companies will be launched soon and there is a new food stock exchange in the pipeline that is just awaiting the issuance of the stock companies law”.
Bahrain’ Economic Development Board (EDB) said in June Bahrain is considering selling a stake in the Bahrain Stock Exchange as part of its “long-term” privatisation programme.
The Bahraini stock market suffers from low trading volumes and many shares are not traded on a daily basis.