Decision of the Board of Directors of the Egyptian Financial Supervisory Authority

No. (69) of 2013 dated 25/11/2013
Amending Decision No. (143) of 2010 of the Board of Directors
Regarding the Regulation of Registration and Trading Operations of Shares of Companies Operating in the Securities Sector

Board of Directors of the Egyptian Financial Supervisory Authority

Having reviewed the Capital Market Law issued by Law No. (95) of 1992 and its Executive Regulations, and the decisions issued to implement it; and the Central Depository and Registration 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 on the provisions organizing the Egyptian Exchange and its financial affairs; and Presidential Decree No. (192) of 2009 issuing the Statute of the Egyptian Financial Supervisory Authority; and Decision No. (143) of 2010 of the Board of Directors regarding the regulation of registration and trading operations of shares of companies operating in the securities sector, as amended by Board Decision No. (67) of 2011; and the approval of the Board of Directors in its session No. (15) of 2013 dated 25/11/2013

Has Decided

(Article One)

The following texts shall replace the texts of Item (1) of Article (7) and Article (3) of Decision No. (143) of 2010 of the Board of Directors:

Article (7)

Item (1): The ratio of intangible assets shall not exceed 50% of total equity or 30% of total assets in the company, based on the last three annual financial statements preceding the submission of the application to the Authority.

Intangible assets refer to assets that lack tangible physical existence and related assets that generate future economic benefits according to Egyptian Accounting Standard No. (23), including goodwill, patents, intellectual property rights, business operation licenses, computer software, and customer lists.

Article (3)

The provisions of this Decision shall not apply to companies engaged in participating in the establishment of companies that issue securities or in increasing their capital, unless such companies hold a controlling stake in a securities brokerage company, in which case it is required for such companies to obtain the Authority's non-objection that they meet the conditions stipulated in Items (7, 8) of Article (2) of this Decision, as well as the compliance of their affiliated brokerage company with the standards and conditions stipulated in Items (1, 2, 5) of Article (2) of this Decision.

The controlling stake refers to that company alone or its affiliated parties holding 50% or more of the shares of the capital of the affiliated brokerage company.

(Article Two)

This Decision shall be published in the Egyptian Gazette and on the Authority's website, and shall take effect from the day following its publication in the Egyptian Gazette.

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Sherif Samy
Chairman of the Board
46.76

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Egyptian Financial Supervisory Authority
Egyptian Financial Supervisory Authority (EFSA)

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