Capital Markets Authority Board of Directors Decision

No. (74) of 2019 dated 20/06/2019
Amending Board of Directors Decision No. (53) of 2018 Regarding Licensing Conditions, Renewal, and Share Ownership Rules for Companies Operating in Non-Banking Financial Activities

Capital Markets Authority Board of Directors

Having reviewed the Capital Markets Law issued by Law No. (95) of 1992 and its Executive Regulations; and Law No. (10) of 2009 regulating supervision over non-banking financial markets and instruments; and Presidential Decree No. (192) of 2009 issuing the Basic Statute of the Capital Markets Authority; and Capital Markets Authority Board Decision No. (53) of 2018 regarding licensing conditions, renewal, and share ownership rules for companies operating in non-banking financial activities; and upon the approval of the Authority's Board of Directors in its meeting held on 20/06/2019:

Decided

(Article One)

The establishment and licensing of companies that engage in the activity of establishing or participating in the establishment of companies or in increasing their capital (existing companies) shall be in accordance with the requirements stipulated in Chapter Three of the Capital Markets Law issued by Law No. (95) of 1992 and the decisions issued in implementation thereof, without complicating the ownership structure requirement that must be met by companies seeking to conduct one of the non-banking financial activities, as stipulated in item No. 2 of Article Four of the Capital Markets Authority Board Decision No. (53) of 2018 regarding licensing conditions, renewal, and share ownership rules for companies operating in non-banking financial activities.

(Article Two)

The item pertaining to securities rating, classification, and ranking companies included in Table No. «1» attached to the Board of Directors Decision No. (53) of 2018 regarding licensing conditions, renewal, and share ownership rules for companies operating in non-banking financial activities mentioned above is amended as follows:

<!-- Table (206, 177, 857, 335) -->

Activity	Percentage of Contribution by Legal Entities or Financial Institutions
Companies Operating in the Securities Field	-1 Securities Rating, Classification, and Ranking Companies; It is required that the contribution percentage owned by one of the international entities in the credit rating field be no less than 10% of the capital of the securities rating, classification, and ranking company, and it is not required that legal entities or financial institutions be present among the company's founders.

(Article Three)

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

Chairman of the Board of Directors of the Authority

[Signature]
Dr. Mohamed Omran

[Seal]
Capital Markets Authority
Office of the Chairman

47.77

---

Smart Village, Building no. B-136, Giza
Postal Code: 12577
Tel.: (00202) 35345350 - Fax.: (00202) 35370036 www.FRA.gov.eg

Smart Village, Building 136, Giza, Egypt
Postal Code: 12577
Tel.: +2.2 35345350 - Fax.: +2.2 35370036 info@fra.gov.eg