Regulatory Alerts2018-01-01
Decision of the Minister of Investment and International Cooperation No. 113 of 2018
The Minister of Investment and International Cooperation issued Decision No. 113 of 2018 to formally add the "Direct Investment Company Activity" to the permitted operations of securities companies under Egyptian law. This regulation mandates that such entities must operate as limited partnerships with a minimum paid-up capital of 10 million Egyptian pounds, requiring the general partner to hold at least 0.5% of the capital. Additionally, the decision restricts the remaining capital subscription to qualified individual, corporate, and financial investors, while allowing successive capital issuances and increases based on the company's active investment volume.
Ministry of Investment and International Cooperation The Minister
Decision of the Minister of Investment and International Cooperation No. 113 of 2018
Adding the Direct Investment Company Activity to the Activities of Companies Operating in the Securities Field
Ministry of Investment and International Cooperation Having reviewed the Constitution, and the Capital Market Law issued by Law No. 95 of 1992, its amendments, its executive regulations, and the decisions issued for its implementation, and Law No. 10 of 2009 regulating supervision over non-banking financial markets and instruments, and the Statute of the Financial Regulatory Authority issued by Presidential Decree No. 192 of 2009, and Presidential Decree No. (387) of 2015 delegating certain authorities to the Prime Minister and designating the competent Minister to apply the provisions of Law No. (10) of 2009, and Presidential Decree No. 92 of 2017 amending the operation of the Council of Ministers, and Prime Ministerial Decision No. (2573) of 2015 delegating the Minister of Investment to exercise the authorities of the competent Minister to apply Law No. (10) of 2009, and based on the approval of the Board of Directors of the Financial Regulatory Authority issued during its meeting held on 26/4/2018.
HAS DECIDED
(Article One)
The "Direct Investment Company Activity" is added to the activities of companies operating in the securities field stipulated in Article (27) of the Capital Market Law issued by Law No. 95 of 1992, subject to the practice of this activity meeting the following conditions:
- Legal Form: A limited partnership.
- Capital: The issued and paid-up capital of the company shall not be less than (10) million Egyptian pounds, and the share of the general partner shall not be less than half a percent of the share of the limited partners in the capital. The company may determine an authorized capital, and the issuance and increase of the issued capital shall be by successive resolutions, taking into account the volume of investments executed by the company.
- Shareholders: The company's capital (excluding the general partner's share) shall be offered to qualified investors, including individuals, legal entities, and banking and non-banking financial institutions.