Wednesday February 10 2016

News Source: Global Exchanges

Focus: Trading Rules

Type: General




The Egyptian Financial Supervisory Authority (EFSA) has approved amendments to the Executive Regulations of the Capital Market Law. The amendments add new Articles that introduce covered bonds and allow the issuance of non-rated bonds. Additionally, it adds new type of investment funds, namely charitable funds which do not distribute dividends to certificate holders.

The new amendments allow the issuance of non-rated bonds in order to provide financing for small and medium enterprises without laying burdens on those SMSs  such as obtaining  credit ratings and annual renewals. Non-rated bonds will be available at financial institutions and investments funds and not through the public. These types of bonds shall be granted for qualified investors who are able to evaluate the risks.

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