Union of Arab Securities Authorities.

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The Securities and Commodities Authority, has approved application for the registration and subsequent listing on the securities markets submitted by Zima Holding Co. under Foreign Companies.

Currently there are (127) companies from different sectors listed on the financial markets including (111) local companies and (16) foreign companies. 

 

CMA announced applying for the activity of Valuation of Assets shall be according to the application form provided in Appendix No. (5) (Application for Securities Activities License) of Module five (Securities Activities and Registered Persons) of the Executive Bylaws of Law No. (7) of 2010 and their amendments. It is available for all persons who meet all the license requirements stipulated in Article (1-5) of Chapter One (Securities Activities) of Module Five (Securities Activities and Registered Persons) of the Executive Bylaws of Law No. (7) of 2010 and their amendments, especially the requirements stipulated in Appendix (1) (Capital Requirements and Legal Form of Licensed Persons) of the same Module. In this case the company’s capital shall be one hundred thousand K.D. (Kuwaiti Dinar) and its legal entity as a shareholding company or limited liability, provided that one of the partners shall be an auditor registered with the CMA.
The Capital Markets Authority (CMA) has announced the end date of corporate governance reports’ submission period of 2017, pursuant to the provisions of Module Fifteen (Corporate Governance) of the Executive Bylaws of Law No. 7 of 2010 on the Establishment of the Capital Markets Authority and Regulating Securities Activities and their amendments, which stipulate that companies subject to the mentioned rules shall annually provide the CMA with an evidence of meeting the requirements set forth in the rules of corporate governance issued by the CMA.

It is worth mentioning that 197 out of 198 companies, which are subject to corporate governance rules, have submitted the required report within the specified period.

 

Final Beneficial Owner Identification Rules come into force after publishing a decision that amends the Executive Regulations of the Capital Market Law in Egyptian Gazette.
The cases in which these rules will be applied include the following : issuing companies’ shares , amending the ownership structure, approving mandatory and voluntary tender offers, IPOs, in addition to listing of securities in one of the Stock Exchanges as well as establishing any activity related to the companies operating in securities , or participating in any activity by 10% or more of the share capital or acquiring 10% or more.
The decision of the Minister of Investment and International Cooperation no. 33 of 2017 stated that a new chapter shall be added to the Executive Regulations entitled "Chapter 13 – Final Beneficial Owner Identification Rules ". Also, it states other cases defined by EFSA’s Board of Directors to achieve market stability and transparency of activities.
EFSA shall disclose the legal form, the law, the founding state, nationality, activity, the entity’s BOD, the person who has the right to sign instead of the legal person, in addition to the ownership structure in cases of companies or mutual funds, including anyone who owns 10% or more. In case the ownership structure includes legal persons whose ownership exceeds 50% of the company’s capital, the data shall also be submitted.
EFSA has assigned the establishment and management of Movable Guarantees Registry for the Egyptian Credit Bureau "I-Score”, the contract’s procedures are being completed with the company to start the actual operation within a maximum period of six months from the date of the contract.
This is a step towards achieving financial inclusion in the economy and drying up the obstacles that occurred in granting financing to ordinary citizens by providing financing guarantees, organizing the collateral of these movable guarantees and facilitating publicity procedures. That is in addition to facilitating access to information about guarantees registered in the Movable Guarantees Registry through the database published on the registry's website.
On the other hand, the existence of movable guarantees registry will activate financial leasing through using movable assets that are registered in the register as collateral for obtaining financing. This will increase the chances of small and micro enterprises in obtaining the necessary financing to carry out their activity while minimizing the risks related to it. In addition it will reduce credit costs, enhance confidence in the creditors to ensure the fulfillment of their rights and activate investment movement and accelerating the development. Also, it will open the door wide for small companies to enter the Nile Stock Exchange as a new financing platform that companies will depend on in financing its future expansions.
The Egyptian Credit Bureau "I-Score” will operate according to an electronic system that records all the data of citizens wishing to obtain financing. The Registry will include the kind of movable guarantees to prove its ownership and will prohibit using it again through the user name and personal password. EFSA set a fee of 15 pounds per thousand pounds of the guarantee’s value with a minimum of 50 LE and up to 500 LE as maximum fees set for registration and for any amendment / addition / cancellation of registration or assignment.

It is worth mentioning that Movable Guarantees Law no. 115 of 2015 and its executive regulations are aimed at overcoming the legal difficulties facing small and micro enterprises in obtaining financing using movable assets as collateral for obtaining financing, as the general provisions in the mortgage require the transfer of movable property from the debtor to the creditor or to another person accepted by the creditor.

 

EFSA launched the automated calling system for clients of the Central Department for Market Services, this new system will facilitate dealings with the clients and help them to finish the procedures and obtain all the necessary approvals and licenses easily. A number of windows have been allocated to deal with the clients in order to receive and review documents and requests submitted to EFSA regarding establishing a company or obtaining a license to practice activities in (insurance companies, private insurance funds, securities companies, mortgage finance companies, financial leasing companies and factoring that is in light of the provisions of the laws.

Also, clients can submit documents related to the invitations of Ordinary and Extraordinary General Assemblies, approving minutes of General Assemblies, adoption of minutes of companies’ boards of directors. That is besides, receiving requests for transfers of shares, requests for transactions of board members and their relatives in the stock market, requests for capital increase or adjusting the nominal value of the shares in addition to public and private prospectus. As well as documents related to labor union shareholders and documents of the financial leasing contracts (purchase agreement, termination agreement and waiver) all these shall be revised in accordance with the provisions of the law and its Executive Regulations.

 

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