The Egypt Financial Regulatory Authority has introduced a new framework for enforcing final court judgments, arbitral awards and other enforceable instruments covering the sale, purchase or transfer of ownership of centrally deposited securities that are not listed on the exchange. The measure is intended to address longstanding delays or failed execution in this part of the market by creating a route to transfer ownership and complete any related settlement through the depository system. Under the regime, interested parties may submit execution requests to the securities depository and registry company on a prescribed form, together with the enforceable judgment or award, proof that the judgment debtor was properly notified, evidence that the value of the securities has been deposited with a securities brokerage firm where cash payment is required, and any approvals needed for transfers subject to additional legal conditions. The applicant must also provide identity or corporate registration documents and confirm that the instrument remains valid and is not subject to an execution dispute unless that dispute has been rejected. The depository will review the request, notify the Egyptian Exchange and seek confirmation within one week on any impediments to the transfer, then move the securities between the parties' custodian accounts, transfer the cash amount to the entitled party's bank account where applicable, complete settlement under its technical systems, retain records of the transaction and notify the authority once settlement is completed.

Original source Back to tracker