Regulatory Alerts2014-01-01
Circular Letter No. (8) of 2014 Regarding the Trading of Treasury Shares for Companies Listed on the Egyptian Exchange
The Egyptian Financial Supervisory Authority issued Circular Letter No. 8 of 2014 to enforce the statutory requirement that listed companies must sell any acquired treasury shares to third parties within one year of purchase. The directive specifies that transfers to subsidiaries or entities under actual control do not satisfy this disposal obligation, and shares held through such entities must complete the full one-year holding period, carry no voting rights at the parent company’s general assemblies, and cannot be converted into Global Depositary Receipts. The Egyptian Exchange is instructed to implement these provisions, publish them on trading screens and its website, and strictly apply all treasury share trading regulations during related settlement procedures.