Aggregated News From Investment Management Regulators

FRA calls for a consultative session to prepare a legislative framework for short-term debt instruments


Please complete the required fields.

  •  Dr. Omran: The Authority is working intensively to meet the capital market’s need for new financing instruments
  •  Dr. Omran: Reviewing the best international practices that are applied upon issuing short-term debt instruments before the issuance of the  regulatory framework

Yesterday, FRA hosted a workshop for consultation, exchanging views and ideas, and receiving comments on the draft of the legislative and regulatory framework set for short-term debt instruments in the Egyptian capital market in a step to develop a short-term financing tool that suits the nature of the companies which have short period of capital turnover. Recently, there are long-term bonds with duration of 13 months or more, which is an obstacle for these companies to meet their short-term financing needs.

It is worth mentioning that the Authority is implementing this project in cooperation with the European Bank for Reconstruction and Development to prepare a comparative study of the regulatory frameworks of short -term debt instruments in a number of developed markets, including the United States, France and the United Kingdom, in order to identify the best practices applied internationally in this field.

Dr. Mohammed Omran – FRA’s  Chairman addressed the participants from the – representatives of the investment managers, investment banking , credit rating companies, fixed income society, legal advisors, private insurance funds, financial leasing companies and representatives of the European Bank for Reconstruction and Development (ECRD) – emphasizing that the Authority is working closely with the needs of the non-banking financial sectors, particularly the capital market sector and various financial instruments available to finance various projects.   FRA’s Chairman showed great interest in the point of views of the relevant parties during the events of the workshop.  Also, he stressed that all opinions, ideas and suggestions put forward will be taken into account upon issuing  the rules governing short-term debt instruments as well as best practices applied internationally.

FRA’s Chairman added that the workshop represented an important consultative step before completing the legislative framework for short-term debt instruments, and this is what is always followed by the Authority upon introducing new financial instruments and legislations. In addition, Dr. Omran emphasized that the Authority will issue approvals for the issuance of short-term debt instrument within a maximum of 5 working days from the date of submitting all the needed documents due to the special nature of short-term debt instruments.

Within the same context, Mr. Abdul Hamid Ibrahim, FRA’s  board member  pointed out that amendments to the Capital Market Law approved by the Parliament earlier this year – which were the biggest amendments for more than 26 years to the Egyptian Capital Market Law – came within the framework of the Authority’s keenness to introduce new short-term debt instruments , adding that the amendments  allow the  companies and entities to issue short-term debt instruments not exceeding two years  pursuant to a decision by the  company’s board of directors with the authorization of the company’s  general assembly instead of a decision by an extraordinary general assembly in accordance with the old law.

Source link

Regulator Information

Abbreviation: FRA
Jurisdiction: Egypt

Recent Articles

Directive for the beneficial ownership register of express trusts and similar legal arrangements

See the Press Release published by the Cyprus Securities and Exchange Commission (CySEC CY) here: Source link


Attention! The FMA warns investors against concluding transactions with: RichmondSuper (Link to external page. Opens in new window.) [email protected] [email protected] [email protected] [email protected] [email protected] (Link to external page. Opens in new window.) This provider...

Hardson Becker Global

Attention! The FMA warns investors against concluding transactions with: Hardson Becker Global with its registered address apparently in Hangzhou, China This provider is not authorised to carry...

“Let’s talk about money” – money laundering: how illegal assets are given a legal appearance

In the latest edition of its consumer information series, “Let’s talk about money” the Austrian Financial Market Authority (FMA) explains about the term money...

Chair Powell will host town hall with educators August 2, 2021 at 4 p.m. EDT

Please enable JavaScript if it is disabled in your browser or access the information through the links provided below.

Get the latest from Regulatory.News in your inbox!