Board of Directors Secretariat

Decision of the Board of Directors of the Authority No. (40) of 2017

Dated 6/3/2017

Precautionary Measures Regarding Transactions Violating the Rules Governing Trading on Egyptian Exchanges

The Board of Directors of the General Authority for Financial Supervision Having reviewed the Law on Joint Stock Companies, Companies Limited by Shares, and Limited Liability Companies issued by Law No. (159) of 1981 and its executive regulations; and the Capital Market Law issued by Law No. (95) of 1992 and its executive regulations, implementing decisions, and amendments; and the Central Deposit and Registration of Securities Law issued by Law No. (93) of 2000 and its executive regulations; and Law No. (10) of 2009 regulating supervision over non-banking financial markets and instruments; and the Statute of the General Authority for Financial Supervision issued by Presidential Decree No. (192) of 2009; and Presidential Decree No. (191) of 2009 regarding the provisions governing the Egyptian Exchange and its financial affairs; and upon the approval of the Authority's Board of Directors in its meeting held on 6/3/2017.

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Has Decided

(Article One)

The Authority, when investigating transactions conducted on Egyptian exchanges in violation of the trading rules stipulated in the Capital Market Law and its executive regulations, and other relevant decisions that affect the integrity and stability of trading, may take any of the following precautionary measures in cases requiring such action:

1. Suspending the violating client's ability to trade in specialized activities (margin buying – buying and selling within the same session) during the Authority's investigation period, not exceeding three months.
2. Suspending the violating client's ability to trade via buying only in the market during the Authority's investigation period, not exceeding three months.

In the event the Authority requests criminal prosecution proceedings, the suspension of benefits shall remain in effect until referral to trial and a judgment is issued on the merits, or the Public Prosecution dismisses the case or reaches a settlement with the Authority, whichever occurs first.

(Article Two)

This decision shall be published in the Egyptian Gazette and on the Authority's website, and shall take effect from the date of its publication.

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Chairman of the Board of Directors
Sherif Samy

General Authority for Financial Supervision
Office of the Chairman
46076