Regulatory Alerts2017-01-01
Decision of the Board of Directors of the Authority No. (40) of 2017
The General Authority for Financial Supervision issued Decision No. 40 of 2017 to impose precautionary trading restrictions on clients violating Egyptian exchange regulations. The decision authorizes the suspension of violating clients' access to specialized activities like margin trading or same-day transactions, or limits them to buying-only operations for up to three months during investigations. Should criminal proceedings be requested, these restrictions persist until a final court ruling, prosecutorial dismissal, or settlement with the Authority occurs.
Board of Directors Secretariat
Decision of the Board of Directors of the Authority No. (40) of 2017
Dated 6/3/2017
Precautionary Measures Regarding Transactions Violating the Rules Governing Trading on Egyptian Exchanges
The Board of Directors of the General Authority for Financial Supervision Having reviewed the Law on Joint Stock Companies, Companies Limited by Shares, and Limited Liability Companies issued by Law No. (159) of 1981 and its executive regulations; and the Capital Market Law issued by Law No. (95) of 1992 and its executive regulations, implementing decisions, and amendments; and the Central Deposit and Registration of Securities Law issued by Law No. (93) of 2000 and its executive regulations; and Law No. (10) of 2009 regulating supervision over non-banking financial markets and instruments; and the Statute of the General Authority for Financial Supervision issued by Presidential Decree No. (192) of 2009; and Presidential Decree No. (191) of 2009 regarding the provisions governing the Egyptian Exchange and its financial affairs; and upon the approval of the Authority's Board of Directors in its meeting held on 6/3/2017.
Has Decided
(Article One)
The Authority, when investigating transactions conducted on Egyptian exchanges in violation of the trading rules stipulated in the Capital Market Law and its executive regulations, and other relevant decisions that affect the integrity and stability of trading, may take any of the following precautionary measures in cases requiring such action:
- Suspending the violating client's ability to trade in specialized activities (margin buying – buying and selling within the same session) during the Authority's investigation period, not exceeding three months.
- Suspending the violating client's ability to trade via buying only in the market during the Authority's investigation period, not exceeding three months.
In the event the Authority requests criminal prosecution proceedings, the suspension of benefits shall remain in effect until referral to trial and a judgment is issued on the merits, or the Public Prosecution dismisses the case or reaches a settlement with the Authority, whichever occurs first.
(Article Two)
This decision shall be published in the Egyptian Gazette and on the Authority's website, and shall take effect from the date of its publication.
Chairman of the Board of Directors
Sherif Samy
General Authority for Financial Supervision
Office of the Chairman
46076