Egyptian Financial Supervisory Authority

Egyptian Financial Supervisory Authority

Chairman of the Board

Board of Directors Decision No. (7) of 2015

Dated 1/7/2015

Regarding the Rules and Procedures for Trading by Representatives of the Board of Directors of the Central Depository and Clearing Company, Its Employees, Their Spouses, and Minor Children in Securities

The Board of Directors of the Egyptian Financial Supervisory Authority,

Having reviewed the Capital Market Law issued by Law No. (95) of 1992, its Executive Regulations, and the decisions issued to implement them;

And the Central Depository and Clearing of Securities Law issued by Law No. (93) of 2000, and its Executive Regulations;

And Law No. (10) of 2009 regarding the regulation of supervision over non-banking financial markets and instruments;

And Presidential Decree No. (191) of 2009 concerning the provisions organizing the Egyptian Exchange and its financial affairs;

And Presidential Decree No. (192) of 2009 issuing the Basic Statute of the Egyptian Financial Supervisory Authority;

And the approval of the Authority's Board of Directors in its meeting No. (2) dated 1/7/2015;

Has decided:

(Article One)

It is prohibited for representatives of the Board of Directors of the Central Depository and Clearing Company, its employees, their spouses, and minor children to trade in securities except after obtaining the approval of the Company's Board of Directors and a no-objection clearance from the Authority, in accordance with the rules and procedures set forth in this Decision.

Without prejudice to all rules and procedures for trading in securities, it is prohibited for the persons referred to in the preceding paragraph to trade in securities for which they or the Central Depository and Clearing Company possess undisclosed or unavailable information or data regarding other market participants, which could affect the prices of these securities.

(Article Two)

In application of the provisions of this Decision, the following terms and expressions shall have the meanings indicated alongside each:

Concerned Persons: Natural persons representing the Board of Directors of the Central Depository and Clearing Company and its employees, including experts and consultants, and their spouses and minor children.

The Company: The Central Depository and Clearing Company for Securities.

The Authority: The Egyptian Financial Supervisory Authority.

Brokerage Company: Brokerage firms, securities portfolio formation and management companies, and companies operating in brokerage and dealing activities for bonds.

Securities: Shares, bonds, financing certificates, and investment fund documents listed on the Exchange.

(Article Three)

The Company shall determine the procedures for obtaining approval from its Board of Directors by the Concerned Persons, as well as the list of brokerage companies through which the Concerned Persons must trade.

(Article Four)

Concerned Persons wishing to trade in securities are required to submit an application to the Authority to obtain its no-objection clearance to trade in securities, accompanied by the following documents:

(a) The full name of the person, their affiliation with the Company or nature of their work there, and the unified code for them, their spouses, and minor children.

(b) Approval from the Company's Board of Directors for each Concerned Person to trade, including the annual trading value for each person.

(c) Notification of the Company regarding the name of the contracted brokerage firm, and a copy of the contract signed with it.

(d) A commitment that the trading of each Concerned Person with the brokerage firm shall be conducted directly through the Company.

(e) A commitment not to trade in securities except through only one brokerage firm from those mentioned in the preceding Article, and a commitment to immediately notify the Authority in case of any change.

(f) A commitment to notify the Authority immediately upon any change in the aforementioned data.

In all cases, the aforementioned persons are required to renew their application for the Authority's no-objection clearance annually.

(Article Five)

The Company shall be committed to the following:

1. Maintaining a register detailing purchase and sale transactions for Concerned Persons, including the name of the person on whose behalf the transaction was executed, the execution date, the quantity of shares, their value, and the execution price.

2. Maintaining a complete file for each of the aforementioned persons, containing detailed data on all their securities transactions and supporting documents.

3. Submitting a periodic quarterly report to the Authority detailing any observations or errors related to these transactions that come to its attention.

(Article Six)

Securities brokerage companies are prohibited from dealing with Concerned Persons except through the Company.

(Article Seven)

This Decision shall be published on the websites of both the Authority and the Central Depository and Clearing Company for Securities, and shall take effect from the day following its publication date. Any provision conflicting with its provisions is hereby repealed.

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Chairman of the Board

Sherif Samy

Office of the Chairman

46076

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