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EFSA’s Precautionary Measures regarding the Temporary Suspension of violators’ transactions come into force


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•Precautionary Measures to prevent Violators from Purchasing during the Period of investigation

EFSA’s BOD decision no.40 of 2017 regarding the Precautionary Measures set for those who violate trading rules in the Egyptian Gazette (issue no.71 dated 26 March 2017).  The said decision stated that some precautionary measures may be taken in case of repeated violations. The said measures prevent the violator from dealing in specialized activities such as margin trading or Intraday trading and also preventing him from purchasing in the market.

 Sherif Samy – EFSA’s Chairman noted that if the precautionary action is taken to prevent the violators from dealing during the period of investigation, the period shall not exceed three months. On the other hand, if EFSA requests to file a lawsuit, suspension shall be continued until referring it to the court and a verdict is issued or the public prosecutor saved the incident or the violators make reconciliation with EFSA, whichever is earlier.

EFSA’s Chairman stressed that these precautionary measures will be applied in a narrower scope. He added that these measures were issued due to the repeated violations of trading rules stated in the Capital Market Law and its Executive Regulations and other related decisions.

He noted that Article 43 of the Capital Market Law stipulates that EFSA shall take the necessary measures to achieve its objectives including regulating the Capital Market to make sure that those transactions are not tainted with fraud, exploitation or speculations. He added that Article (4) of Law No. 10 of 2009 regarding regulation of non-banking, financial markets and instruments mandated the Authority to work on the safety and stability of financial markets and to provide means, systems, and rules that enhance the efficiency of these markets and the transparency of the activities. Also, it states that EFSA shall take the necessary measures to reduce manipulation and fraud in those markets.

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Regulator Information

Abbreviation: FRA
Jurisdiction: Egypt

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