Capital Market Authority

Decision No. 113 of 2019 of the Board of Directors of the Authority

Dated 28/8/2019

Regarding certain controls for companies engaged in the activity of evaluating, classifying, and rating securities of medium and small enterprises

Board of Directors of the Capital Market Authority

After reviewing the Capital Market Law issued by Law No. 95 of 1992, and its subsequent amendments; And Law No. 10 of 2009 regarding the regulation of supervision over markets and non-banking financial instruments; And Presidential Decree No. 192 of 2009 issuing the Basic Statute of the Capital Market Authority; And Decision No. 53 of 2018 of the Board of Directors of the Authority regarding the controls for granting and maintaining licenses and the rules for shares of companies operating in non-banking financial activities; And the approval of the Board of Directors of the Authority in its session held on 28/8/2019;

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Article One

The ruling concerning the securities rating, classification, and evaluation companies specified in Table (1) attached to Decision No. 53 of 2018 of the Board of Directors of the Authority mentioned above shall not apply to companies whose activity is limited to engaging in the evaluation, classification, and rating of securities of medium and small enterprises, and one of the shareholders of these companies may be an international specialized entity in the field of credit rating.

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Article Two

Companies whose activity is limited to engaging in the evaluation, classification, and rating of securities of medium and small enterprises are required to issue a professional liability insurance policy according to the conditions set by the Authority, commensurate with the size and capacities of the liabilities arising from performing their duties. Furthermore, the Managing Director of these companies must complete a training course in the field of evaluation, classification, and rating of securities of medium and small enterprises from the Financial Services Institute or one of the entities accredited by the Authority.

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Article Three

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.

Chairman of the Board of Directors of the Authority Dr. Mohamed Omran