The Board of Directors of the Financial Regulatory Authority (FRA), led by Mohamed Farid, has issued Decision No. 303 of 2024, amending the rules for handling securities not listed on the Egyptian Exchange (EGX). This decision updates the FRA’s previous guidelines, originally outlined in Decision No. 94 of 2018, to streamline processes and enhance market efficiency.
Key updates include raising the minimum transaction value for transferring ownership of securities not listed on the EGX to EGP 60 million, up from the previous threshold of EGP 20 million. Transactions above this value must be presented to the EGX Operations Committee for approval and require the FRA’s no-objection before proceeding. For transactions below EGP 60 million, standard procedures for publicizing the transaction on the EGX will apply.
The decision is part of the FRA’s ongoing efforts to improve the business environment, reduce operational costs and timelines, and enhance the competitiveness of Egypt’s non-banking financial markets. By simplifying the documentary process for external transactions, these amendments aim to promote speed and efficiency.
Additionally, the new rules allow brokerage firms, under their responsibility, to accept settlements between parties involved in ownership transfers. This includes confirming that the purchasing party has paid for the securities or has been acquitted, as long as the brokerage obtains the FRA’s no-objection based on submitted documentation.
The decision also extends the period for recognizing bank deposits used to pay for securities, allowing up to two months instead of one. If the deposit period exceeds two months, the brokerage firm must obtain the FRA’s no-objection before submitting the request for implementation to the EGX.
This regulatory update reflects the FRA’s commitment to developing Egypt’s non-banking financial markets, improving operational efficiency, and ensuring greater transparency and ease for clients accessing financial services.
