Aggregated News From Investment Management Regulators

FRA issued the updated version (August 2018) of listing and delisting rules at the Egyptian Stock Exchange

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FRA has issued an updated version of listing and delisting  rules at  the Egyptian Stock Exchange issued by its Board of Directors and published on the Authority’s website to inform the dealers of these updated rules, this comes within the context of FRA’s keenness to continuously and periodically  review these rules and the procedures set for its application   .

Dr. Mohammed Omran, FRA’s Chairman stated that listing and delisting rules at the Egyptian Stock Exchange are the legal framework governing listing and delisting at the Stock Exchange. He added that pursuant to the provisions of Article 16 of the Capital Market Law these rules regulate all issues related to companies and entities operating in the Egyptian Exchange , whether Egyptian or foreign, starting from clarifying  listing conditions and procedures to be followed in this regard, listing conditions at FRA’s registries, obligations set for these companies to be met upon being listed at the Exchange and on the top of these obligations are disclosures , governance, protecting  minority rights, as well as terms of dealing on treasury shares, working capital adjustment  ending by setting  the cases and controls of delisting  company’s securities, whether voluntary or compulsory delisting.

He added that the Authority has ensured that listing and delisting rules comply with international best practices in order to meet the most important requirements of the reports issued by  international institutions, most notably the World Bank’s Doing Business report and the Global Competitiveness Report on the requirements of corporate governance principles, he noted that this comes within the context of FRA’s keenness to  develop and review these rules to meet the developments and international  practices in the reports referred to.

Upon preparing listing and delisting rules, the Authority has taken into account all types of securities issued by companies and entities wishing to list their securities at the Egyptian Stock Exchange, including shares, priority rights, bonds and other debt instruments, investment certificates issued by mutual funds and foreign securities and Certificate of Deposits, that is besides FRA’s keenness to set rules that suit small and medium enterprises.

The attached rules include listing conditions for various types of securities, all disclosure requirements and the decisions that must be recognized by the investor.

The rules also set a section for  governance requirements  and protection of minority rights, including trading in subscription rights, cumulative voting, proportional representation rules for shareholders in companies’  boards of directors , using e-mail in calling for the meetings  of the General Assembly and publishing various disclosures, whether those related to the publication of financial statements or essential issuances  or rights associated with securities before distributing  dividends and free shares .

 In addition, the rules included the requirements and procedures for the voluntary and compulsory delisting giving special attention to protection of minority rights.
 

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Regulator Information

Abbreviation: FRA
Jurisdiction: Egypt

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