The Egypt Financial Regulatory Authority issued a board decision amending the rules for trading in securities not listed on the Egyptian Exchange and for transferring their ownership, increasing the value threshold for deals that require review by the Exchange’s Operations Committee and a no-objection from the authority. The changes also relax documentation and timing requirements for evidencing payment, with the stated aim of simplifying procedures and reducing time and cost. The minimum value for unlisted securities ownership transfer transactions that must be presented to the Exchange Operations Committee and obtain the authority’s no-objection before execution was raised to EGP 60 million from EGP 20 million; transactions below EGP 60 million follow the Exchange’s procedures for announcing execution. The decision also permits brokerage firms, under their responsibility, to accept settlement documents between the parties showing that the buyer has paid the transaction value or has been released from liability, with the transaction executed after obtaining the authority’s no-objection based on the brokerage’s submitted documents. In addition, bank deposits used to pay the transaction value are now accepted for up to two months instead of one without needing a no-objection, while deposits older than two months require a no-objection to be accepted.
Egypt Financial Regulatory Authority 2025-01-22
Egypt Financial Regulatory Authority eases unlisted securities transfers by lifting the no-objection threshold to EGP 60m and extending bank deposit validity to two months
The Egypt Financial Regulatory Authority amended rules for trading unlisted securities, raising the review threshold by the Exchange’s Operations Committee from EGP 20 million to EGP 60 million. The amendments also ease documentation and timing requirements for payment evidence, allowing brokerage firms to accept settlement documents and extending the acceptance period for bank deposits from one to two months without needing a no-objection.