Regulatory Alerts2020-01-01
Financial Regulatory Authority Board Decision No. (138) of 2020
The Financial Regulatory Authority issued Decision No. 138 of 2020 to amend the listing and delisting rules at the Egyptian Exchange by mandating that a company’s authorized capital must not exceed five times its issued capital for both initial and continued share listings. This requirement applies to all Egyptian companies seeking or maintaining their securities on the Exchange, as explicitly added to Articles 6 and 10 of the governing rules. The decision was approved by the Authority’s Board on August 31, 2020, and takes effect the day following its publication in the Egyptian Official Gazette.
FINANCIAL REGULATORY AUTHORITY Chairman of the Authority Financial Regulatory Authority Board Decision No. (138) for the Year 2020 dated 2020/8/31 Amending the Financial Regulatory Authority Board Decision No. (11) for the Year 2014 Regarding the Rules for Listing and Delisting of Securities at the Egyptian Exchange
The Board of Directors of the Financial Regulatory Authority Having reviewed the Capital Market Law issued by Law No. (95) of 1992 and its Executive Regulations; and the Law No. (10) of 2009 regulating supervision over non-banking financial markets and instruments; and the Financial Regulatory Authority Board Decision No. (11) of 2014 regarding the rules for listing and delisting securities at the Egyptian Exchange; and the approval of the Authority's Board in its meeting held on 2020/8/31;
Decided: (Article One) A new item numbered (1 bis) is added to the general conditions for listing securities set forth in Article No. (6) of the rules for listing and delisting securities, with the following text: "The authorized capital of the company wishing to list its securities shall not exceed five times the issued capital."
(Article Two) A third paragraph is added to the conditions for continuing the listing of shares of Egyptian companies set forth in Article No. (10) of the rules for listing and delisting securities, with the following text: "The company whose shares have been listed in the Egyptian Exchange tables shall be committed to ensuring that its authorized capital does not exceed five times its issued capital."
(Article Three) This Decision shall be published in the Egyptian Official Gazette and on the electronic websites of both the Authority and the Egyptian Exchange, and shall take effect as of the day following its publication date in the Official Gazette.
Chairman of the Board of Directors of the Authority Dr. Mohamed Omran
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