(DNE Photo)
Index funds to the registration committee were delayed from 30 December to the first or second week of January, according to Chairman of the Egyptian Stock Exchange (EGX), Mohammed Omran.
Index funds allow for stock indexes to be exchanged as documents through funds run by professional fund management companies.
During a Saturday press conference regarding the results of 2014 stock exchange, Omran stated that the EGX played its part in bonds exchange. The rest of the market players’ role is up to them, in light of their enthusiasm on the subject.
With the contribution of the Central Bank of Egypt (CBE) and the Egyptian Financial Supervisory Authority (EFSA) through the years, the government is attempting to activate the secondary market for bonds. This will allow for creating a market for public bonds and offering exchange, following international capital market systems.
Omran declared last week that an adjustment was made concerning the laws of registration, which will contribute to attracting more companies in 2015.
Omran said that over 30 companies in EGX have less than 1% of free exchange. These companies will stay and will be given a time limit to offer some of their bonds for free exchange. The OPR market will be open Sunday to offer Orascom Construction Industries’ bonds to hotels for free exchange, with a minimum of 5%.
Chairman of the EFSA, Sherif Samy, confirmed that one of the most prominent changes the authority has seen during 2014 is the governance of the market management. It has also seen the addition of experienced members to EGX’s board of directors, as well as some amendments in the constitution which included that the EFSA be an independent supervisory authority.
He added that the financial supervisory is working to support and develop the legislative system to give support to financial funding institutions. Throughout 2014, registration laws saw a significant constraint while there were amendments in the capital market list by issuing index funds, real estate funds and private equity funds during the time of the Minister of Investment, Osama Saleh.
He emphasised that regulations were issued for the real estate evaluation of investment funds, in addition to adjusting the membership of Misr for Central Clearing, Depository and Registry (MCDR) in September. A substantial amendment in the law was made regarding the coverage of investment protection fund, raising it to EGP 500,000 while cancelling the authority’s role in the fund membership.
In Q4 of 2014, changeable bonds became assets, and the minister is yet to approve them. Internationally, the authority is working on the development of the mutual registration system between international stock exchange markets and EGX. In April, Allaisko will hold its next meeting in Egypt for the first time after EFSA became a member of the board of directors.
He declared that Egypt’s rank jumped 12 places following the investment and minority protection index. Despite difficulties in applying the governance system in some companies, it is an important tool to organise companies’ work and advisory on the capital market. The capital fund was at EGP 30bn, including the establishment and funding for companies in the capital market.
He also said that, in November, private ownership of stock exchange was discussed within Allaisko and other organisations. All members of the organisation praised the management system of EGX when it became independent, including electing all member representation.
