Dr. Omran: Allowing Investor Protection Fund (IPF) to purchase securities listed on the Egyptian Stock Exchange not to exceed (10%) of its funds
Dr. Mohammed Omran, FRA’s Chairman welcomed Ministerial Decree No. (792) of 2020 on reorganizing Investor Protection Fund (IPF) in a manner that allows the Fund – after the approval of the Authority – to purchase securities listed on the Egyptian Stock Exchange not to exceed (10%) of its funds , increase its ownership in Misr Al Mostakbal Fund Management Co. or to purchase new certificates. This comes within the context of finding mechanisms to maintain the stability of the Egyptian capital market and to reduce the economic impact resulted from the Coronavirus pandemic.
Dr. Omran said that FRA’s Board of Directors initiated the introduction of mechanisms to maintain the stability of the Egyptian capital market to reduce the economic impacts faced by non-banking financial activities arising from the Corona virus pandemic. FRA’s BOD agreed to amend Article 18 of ministerial decree No. (2339) of 2020 regarding the re-organizing the Investor Protection Fund – in a manner that allows the fund and after the approval of the Authority to purchase securities listed on the Egyptian Stock Exchange not to exceed (10%) of its funds , increase its ownership in Misr Al Mostakbal Fund Management Co. or to purchase new certificates. In this respect, the Fund’s BOD shall put the procedures and the executive regulations needed in this regard and it shall be only valid after obtaining FRA’s approval.
It is worth mentioning that in October last year, the Ministerial Decree No. (2339) of 2020 was issued to re-organize the Investor Protection Fund where Article 18 of the Decree defined aspects of investing funds of the (IPF) and what is prohibited to do or invest in.
Source link
