Regulatory Alerts2026-04-22
Added · Updated
Circular dated April 22, 2026 regarding controls for financing margin purchases of securities
Banks must adhere to specific rules when financing margin securities purchase operations, including establishing internal policies with maximum limits for total allocation, single client financing, and security concentration. Securities traded outside the EGX 100 index are capped at 10% of each client's total portfolio, and banks must implement automated systems for daily revaluation and risk management. Financing must be in Egyptian Pounds, held in custody by the bank, and cannot involve the bank's own shares or finance purchases by major shareholders or board members of the target company. These instructions apply immediately, granting banks six months to reconcile existing portfolios, while reaffirming previous 2001 guidelines on facilities for securities trading companies.
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