• Dr. Omran: The precautionary measure is issued to stop benefiting from the purchase of securities by specialized activities or the market in general and any form whatsoever
Dr. Mohamed Omran- FRA’s Chairman announced that FRA’s Board of Directors has decided to intensify the precautionary measures on clients violating the rules governing trading in the Egyptian Exchanges. The Board agreed that the Authority should take the necessary steps to investigate the transactions held in the Egyptian Exchanges especially , these which violate trading rules stated in the Capital Market Law , its Executive Regulations and other relevant decisions and affecting the safety and stability of transactions. The said decision issued a “precautionary” measure to stop the client under investigation from purchasing securities in the Egyptian Exchange by specialized activities (margin trading -intraday trading ) or by the market in general whether on his behalf or on the behalf of any other beneficiary in any form (in personam or by proxy or mandate or any other natural or legal account) that is during the period of investigations carried out by the Authority , not exceeding three months.
FRA’s Chairman added that if the Authority request to take criminal proceedings, then suspension shall continue until the case is referred to the Court or the judgment is delivered or the public prosecution dismissed the case or a reconciliation procedures are taken , whichever is earlier and in any case not exceeding six months. The suspension shall be continue unless grievances committees or competent judicial authorities or FRA’s Board of Directors decide any other decision in the light of the reasons given in this regard.
Dr. Omran noted that FRA’s BOD decision no. 66 of 2018 regarding the precautionary measures set for clients under investigations due to violating trading rules in the Egyptian Exchanges came within the framework of the Authority’s efforts to activate its regulatory role on capital market activity so as to maintain the integrity and stability of the capital market and regulate trading rules among dealers in the market in order to achieve justice , transparency and prevent conflicts of interest. This led to the cancellation of previous decisions no. (40) and (123) of 2017 to achieve the deterrence of violators and prevent the mitigation of these precautionary measures over a long period of time.