Regulatory Alerts2016-01-01
Board of Directors Decision No. 137 of 2016 Regulating Trading of Pre-emptive Rights in Capital Increase Shares for Non-Listed Public Companies
The Egyptian Financial Supervisory Authority issued Decision No. 137 of 2016 to regulate the trading of pre-emptive rights in capital increase shares for joint stock and commandite companies that are publicly offered but not listed on Egyptian exchanges. The decision mandates that companies enforce pre-emptive rights for existing shareholders, requiring registration with the Central Depository and specifying trading periods, settlement procedures, and brokerage mechanisms. It further prohibits treasury share trading during the subscription period, establishes that pre-emptive rights are non-pledgeable and lapse if unexercised, and authorizes the Egyptian Exchange and depository to issue implementing procedures.
Share