Wednesday May 13 2015
News Source: Global Exchanges
Focus: Trading Rules
Type: General
Country: Egypt
Link: http://www.efsa.gov.eg/content/efsa_en/efsa_news_en/efsa_283_en.htm
The Egyptian Financial Supervisory Authority has issued new amendments to the Executive Regulations of the Capital Market Law. The new amendments regulate the mechanism of issuing convertible bonds and capital increases where the existing shareholders will not participate in it. Also, it regulates the procedures set for the dealings of brokerage companies with the clients of foreign institutions. Additionally, regulating the period set for securities companies to keep the data, documents and contracts of clients.
The new amendments allow the possibility of increasing the company`s capital without taking into account the priority rights to subscribe for existing shareholders in cases where the company wishes to add technical and strategic partners in the company through the IPO, that is for persons or certain parties, whether in the form of cash or using credit balances, and without prejudice to the rights of the minority. A decision shall be issued by the Extraordinary General Assembly Meeting in light of the serious reasons expressed by the members of the Board of Directors and approved by the auditor`s report. Equity ratio and voting rights for subscribers and associated parties shall be excluded upon voting on the decision.
With regard to the period set for securities companies to keep the data , documents and contracts, securities , correspondences of the clients and which is regulated by Article (228) of the Executive Regulations of the capital market Law, as well as what is stipulated in the Trade Act and the results of the practical experience that shows that some disputes can be occur between the clients and brokerage companies and the timing of such disputes, the Executive Regulations stated that the new amendments obliged the company that it should keep the data and documents for five years instead of two years. Also, the contract and its amendments shall be kept in the company for a period of not less than five years from the date of closing of the account or from the date of the last transaction.
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