Regulatory Alerts2021-01-01
Circular Letter No. 6 of 2021 Regarding Trading by Youth Aged 16 to Under 21 in Securities Listed on the Egyptian Exchange
The Financial Regulatory Authority (FRA) of Egypt issued Circular Letter No. 6 of 2021 to formally authorize youth aged 16 to under 21 to trade securities on the Egyptian Exchange using only income from their own work or funds allocated for living expenses. The directive mandates the development of a dedicated guide outlining permitted trading methods, including direct transactions, licensed portfolio management, and investment fund units, while strictly capping portfolio values at 10,000 EGP. Furthermore, it explicitly prohibits margin trading and short selling for this demographic and grants individuals aged 18 and above with legal or guardian authorization the right to independently manage their investment assets in compliance with Egyptian civil and guardianship laws.