In light of the mutual coordination between the Financial Regulatory Authority (FRA) and the Egyptian Stock Exchange in order to develop the Stock Market, speed up procedures and in response to the proposal of the Egyptian Stock Exchange in this regard, FRA’s BOD held a meeting dated 29/10/2017 and the Board approved the amendment to decision no. (17) of 2017 issued on 28/2/2017 regarding regulating trading rules and proof of ownership of unlisted securities.
The new amendment extends the period in which brokerage companies can notify the Stock Exchange of the transactions required to transfer the ownership of the unlisted securities for one month from the date of the order instead of one week. FRA’s BOD taking into account the practical cases for such transactions that can exceed the set period stated in the said decision. In addition, extending the period of one week that is stated in the decision will grant greater flexibility that suits the nature of market’s transactions.
The said amendment also states that the purchaser may prove that he deposits the value of the transaction in the bank account for a period exceeding one month stipulated in the same decision in accordance with reasons estimated by the Authority.