العربية
    MARKET IS CLOSED    Saturday 21 September 2019 GMT +3
 
 Search Quote by
LOGIN   Subscribe Session Date: 20-Sep-2019  
 
 
Laws & Regulations - Law


The BSE Law

Legislative decree No. 120
dated September 16, 1983
(official gazette issue No. 45)

Amended by virtue of decree No. 4729 dated 30/3/1988
And by Law No. 418 dated 15/5/1995
(Regulating the Beirut Stock Exchange)

The President of the Republic,

Pursuant to the Constitution,

Pursuant to Law No. 26/82 dated 17/11/1982 (on authorizing the government to promulgate legislative decrees)

Pursuant to Law No. 10/83 dated 21/5/1983 (on extending the enforcement of Law No. 36/1982 dated 17/11/1982)

After consulting the Council of State,

Upon the proposal of the Prime Minister and the Minister of Finance,

Following the cabinet’s proposal on September 14, 1983,

Decrees the following:

Article 1: The Beirut Stock Exchange (BSE) shall be governed by the provisions of the present legislative decree and the regulatory texts ensuing there from.

Article 2: The Beirut Stock Exchange shall comprise:
  1. A securities market.
  2. A market for raw materials and non-ferrous metals, including precious metals and currencies.
Chapter 1 : The Securities Market

Article 3: Shall be considered a BSE member every joint-stock company with a capital of more than 500 thousand Lebanese pounds.

Article 4: Article 4 of legislative decree No. 120 dated September 16, 1983 shall be repealed and replaced by the following text: (By virtue of Law No. 418 dated 15/5/1995):
Article 4 - new: While preserving the acquired rights, the agent is every corporate body entitled by the BSE committee to mediate in sale and purchase transactions within the Stock Exchange.”

Article 5: Every sale or purchase transaction on listed securities shall be exclusively and solely conducted in the area destined to this end, i.e. the floor. Otherwise, a penalty shall be imposed as provided for in the By-laws.

In parallel, the floor may host transactions on un-listed securities as per the terms set forth in the BSE by-laws.

Article 6: The BSE committee shall be informed of every off-floor trading transaction on listed securities within six working days as of the transaction date. The fee to be settled shall double in this case.

Article 7: Agents, generally known as brokers, shall be exclusively entitled to conduct on-floor securities transactions.

Article 8: The provisions of Law dated September 3, 1956 shall apply to all exchange brokers, who shall heed professional secrecy and abstain from disclosing their clients’ identity unless authorized to do so.

Chapter 2 : The market of non-ferrous metals, including precious metals, raw materials and currencies

Article 9: The right to trade on the BSE market of non-ferrous metals, including precious metals, raw materials, and currencies shall be restricted to:
  1. the banks operating in Lebanon
  2. the agents entitled to mediate in trade transactions (i.e. the sale and purchase of securities)
  3. the financial institutions and currency dealers accredited by the BSE Committee
Article 10: Any trading transaction on non-ferrous metals, including precious metals, raw materials, and currencies, shall be deemed invalid unless conducted in the area destined to this end, i.e. the floor.

Chapter 3 : The BSE Committee

Article 11: As amended by legislative decree No. 30 dated 23/3/1985

The BSE shall be run by a committee composed of a Chairman, a Vice-Chairman, and 8 members appointed, for a four-year tenure, by a cabinet decree promulgated upon the proposal of the Minister of Finance.

Article 12: As amended by legislative decree No. 30 dated 23/3/1985
The Committee shall be formed as follows:
  • A chairman chosen among experts and professionals
  • A representative of the Ministry of Finance named as Vice Chairman
  • Two representatives of banks operating in Lebanon chosen among 6 candidates proposed by the Association of Banks in Lebanon
  • Two agent representatives chosen among 6 candidates proposed by the Association of the BSE Brokers
  • Two representatives of Lebanese joint-stock companies with shares listed on the BSE
  • A representative of Lebanese joint-stock companies, members of the BSE
  • A Lebanese or foreign professional expert well versed in the BSE affairs
Article 13: The BSE committee shall exercise the same powers entrusted by the code of commerce to the Board of Directors in joint-stock companies. It shall equally fulfill all prerogatives enshrined in the BSE law and by-laws. In addition, the Committee may suspend the Stock Exchange sessions when need be.

Article 14: In general, the Committee shall:
  1. Draw up the Stock Exchange by-laws
  2. Draft the Staff Regulation
  3. Propose the Stock Exchange-related legislative and regulatory texts
Article 15: Shall be automatically considered dismissed every committee member convicted of an offense or misdemeanor or of withdrawing a bouncing check. So shall every member declared bankrupt in Lebanon or abroad. In addition, shall be considered to have resigned every member who misses three consecutive meetings without any plausible excuse.

Article 16: The Chairman shall assume his duties on a full-time basis and shall earn in return there for a monthly remuneration, as set in the BSE by-laws.
The Chairman may be dismissed if he breaks the law or the regulation or commits a flagrant error. Such dismissal decision shall be taken after consultation with the BSE Committee that shall in turn examine the issue in the absence of the Chairman.

Article 17: As amended by legislative decree No. 30 dated 23/3/1985
If the Chairman absents from or fails to attend a meeting, the Vice Chairman shall replace him in all his powers and functions.

Article 18: The Committee decisions may be contested before the Civil Chamber of the Court of Appeal in Beirut.
The concerned party shall file his objection within 15 days as of the date he is notified of the decision. Otherwise, he shall be forfeited of the said right.

Chapter 4 : The BSE By-law

Article 19: The By-laws shall determine the Stock Exchange management and trading procedures. It shall mainly:
  1. Highlight the powers of the Committee and its office in addition to the functions and duties of its members as per the present legislative decree
  2. Identify the brokers’ duties and admission terms
  3. Specify the terms of on-floor securities listing
  4. Determine the conditions of accessing the floor and trading the rein
  5. Regulate the securities market and pricing conditions. Determine price publishing terms
  6. Regulate the market of raw materials and non-ferrous metals, including precious metals and currencies
  7. Fix the membership fees, fees, and commissions the BSE administration may collect. Pinpoint the penalties imposed on the defaulting parties
  8. Set the fines imposed on the parties who violate the BSE law and by-laws
  9. Regulate the Disciplinary Board
  10. Other miscellaneous matters deemed prerequisite for a sound SE management and conduct of business

Article 20: As amended by legislative decree No. 30 dated 23/3/1985
The By-laws and any amendment thereto shall come into effect by virtue of a decree promulgated upon the proposal of the Minister of Finance.

Article 21: As amended by legislative decree No. 30 dated 23/3/1985
The BSE Committee shall elaborate then submit the By-laws to the Minister of Finance 6 months as of the enforcement date of the present legislative decree.

Chapter 5: The BSE Operations Body

Pursuant to the provisions of legislative decree No. 30 dated 23/3/1985, Articles 22 till 26 inclusive shall be repealed and Articles 21 till 25 of legislative decree No. 29 dated 5/8/1967 shall be re-enforced.

The Government Commissioner

Article 21- repeated: The BSE shall have a government commissioner generally responsible for implementing its laws and relevant regulations.
The government commissioner shall be appointed as per a decree issued upon the proposal of the Finance Minister.

Article 22: The government commissioner shall attend all the committee meetings in an advisory capacity. He may, when need be, convoke the committee through its Chairman.
If he absents or fails, for any reason whatsoever, to attend these meetings, he may, with the approval of the Director General of the Ministry of Finance, delegate a representative on his behalf.

Article 23: The government commissioner shall be entitled to contest all the committee decisions he deems contradictory to the laws and regulations.
To this end, he may either ask the Committee to reconsider its decision, the implementation of which shall be suspended, or halt the implementation of the decision for one week during which he shall review the matter with the Finance Minister in order to reach a final settlement thereto.

Article 24: The government commissioner may ask the security forces to help him implement the law and regulations and control infractions when they arise.
The infraction minutes and complaints filed against the contravening parties shall be submitted to the Committee Chairman.

Article 25: The Director General of the Internal Security Forces shall permanently put at the Stock Exchange disposal at least two policemen.

Article 26: Repealed by virtue of legislative decree No. 30 dated 23/3/198

Miscellaneous provisions

Article 27: The rules adopted by the Judge of Urgent Matters shall equally govern the civil lawsuits lodged by the BSE Committee.

Article 28: Repealed as per legislative decree No.30 dated 23/3/1985

Article 29: All documents used to confirm the transactions carried out in the Stock Exchange shall be exempted from the stamp duty similarly to any registered contract and, in all likelihood, some transactions. Such exemptions shall be thoroughly specified in the BSE By-laws.

Article 30: The former laws and regulations shall temporarily govern the BSE for a transitory period up to two months until the promulgation date of the said legislative decree.

Article 31: The details of the implementation of this legislative decree shall be specified - when need be - by other decrees issued by the Council of Ministers upon the Premier’s proposal.

Article 32: Legislative decree No. 29 dated August 5, 1967 shall be repealed along with the previous legislative provisions deemed contradictory to the present legislative decree. “Legislative decree No. 30 dated 23/3/1985 has re-enacted articles 21 till 25 inclusive of legislative decree No. 29 dated 5/8/1967.”

Article 33: The present legislative decree shall enter into force as soon as published in the official gazette.

Baabda, on September 16, 1983

Promulgated by the President of the Republic: Amine Gemayel
The Prime Minister: Chafic Wazzan

The Acting Finance Minister: Elie Salem