MANAMA: New rules that specify time frames for recommendation of dividend declaration by listed companies have come in force at Bahrain Bourse (BHB).
In a statement, the stock exchange said the corporate action and mechanism amendments provide specific time frames on recommendation of declaration of a dividend (including bonus shares, if any), the rate and amount per share, the record date, the cum-dividend date, the ex-dividend date and the payment date.
The new timelines, which came into effect as of December 2019, require that the cum-dividend date fall at least one trading day (excluding the date of the general meeting) after the date of the general meeting.
Issuers are also required to ensure payment of declared dividends to shareholders, whose names are registered in the company’s share register on the record date, no later than 10 trading days from that date.
BHB director of listing and disclosures Shaikha AlZayani said, “The amendments aim to provide additional time and further flexibility for shareholders to conduct their trading transactions post the recommendation of declaration of dividends announced during the general meeting date.
“The changes are also in line with international best practices and to achieve consensus across market participants,” she added.
According to the BHB, new listing rules published on January 13 this year along with Central Bank of Bahrain’s amendments in relation to corporate actions timeline, are aimed at enhancing the existing practice and eliminate any potential redundancy and ambiguity with respect to the timeline mechanism of declaration and payment of dividends and bonus shares.
&uuid=(email))