Arab Republic of Egypt

Ministry of Foreign Trade

The Minister

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Minister of Foreign Trade Decision

No. 283 of 2004
Amending Certain Provisions of the Executive Regulations of the Capital Market Law Issued by Law No. 95 of 1992

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Minister of Foreign Trade

Having reviewed the Capital Market Law Issued by Law No. 95 of 1992, and the President of the Republic's Decision No. 51 of 1997 regarding the regulations governing the management of the Cairo and Alexandria Stock Exchanges and their financial affairs, and the Executive Regulations of the Capital Market Law Issued by the Minister of Economy and Foreign Trade Decision No. 135 of 1993, and the Central Deposit and Registration of Securities Law Issued by Law No. 93 of 2000, and after obtaining the opinion of the General Authority for the Capital Market

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Decided:

(Article One)

The following articles shall be added to the Executive Regulations of the aforementioned Capital Market Law:

Article (89 bis)

Each stock exchange shall maintain a register recording the companies licensed by the Authority to operate in the securities field that conduct their activities there. Registration shall be effected upon payment of the fees and subscriptions stipulated in Article "19" of the Capital Market Law. A decision by its board of directors shall be issued regarding the rules and conditions governing the registration of such companies with the stock exchange, and this decision shall not take effect until approved by the Authority.

Article (89 bis "a")

Companies registered with the stock exchange pursuant to the preceding article shall be members thereof. A decision by the stock exchange's board of directors shall be issued regarding membership rules, which shall take effect after approval by the Authority.

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Article (89 bis "b")

Membership shall be as follows:

1. An executing member responsible for settlement and executing margin purchase transactions.
2. An executing member responsible for settlement.
3. An executing member responsible for settlement through a custodian.
4. Primary dealers, who conduct trading activities in government bonds.
5. Custodians.

Article (89 bis "c")

The stock exchange shall be responsible for verifying the continued compliance of each of its members with technical and financial standards and requirements.
The stock exchange shall notify the Authority of any violations by members, their directors, representatives, or agents while conducting business within the stock exchange, of the provisions of the Capital Market Law and the aforementioned Central Deposit and Registration of Securities Law, their executive regulations, and the decisions issued to implement them.

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Article (89 bis "d")

In all cases requiring an inspection of a member's operations due to matters related to their status or conduct of business at the stock exchange, the stock exchange must immediately notify the Authority to conduct the necessary inspection, and the Authority may, for this purpose, utilize the stock exchange's employees nominated by its president.

In the event that a member, or any of their directors, agents, or representatives at the stock exchange, violates the provisions of the Capital Market Law and the Central Deposit and Registration of Securities Law, their executive regulations, or decisions issued to implement them, the stock exchange's membership committee may take one of the following measures:

1- Issuing a warning regarding the violation and prohibiting its recurrence.
2- Authorizing the implementation of the measures stipulated in the following clause (3).
3- Prohibiting the member from utilizing the trading systems operational at the stock exchange, as well as the services and facilities provided by the stock exchange for trading, and also prohibiting the presence of any of the member's employees in the trading floor, for the duration determined by the membership committee.

In all cases, the concerned party may appeal the membership committee's decision regarding this matter to the Authority within fifteen days from the date of notification of the decision.

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(Article Two)

Members of the stock exchange must regularize their status in accordance with the provisions stipulated in the preceding articles and the stock exchange's membership rules, within six months from the effective date of this decision. The Minister may, upon the Authority's proposal, extend this period for another period not exceeding six months.

(Article Three)

This decision shall be published in the Egyptian Gazette and shall take effect from the day following its publication date.

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Minister of Foreign Trade
(Dr. Youssef Boutros Ghali)

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Membership Rules for the

Cairo and Alexandria Stock Exchanges

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General Provisions

Article One:

The provisions of the attached rules regarding membership at the Cairo and Alexandria Stock Exchanges shall apply.

Article Two:

These rules aim to mitigate risks associated with trading at the stock exchange by managing and controlling such risks through the implementation of these rules. This is achieved by permitting a member to trade at the stock exchange and conduct activities according to their financial and technical capabilities, the expertise and competence of the company's management and employees, and the software and automated systems used for data processing, risk detection, and early warning of risks that may arise from the member's conduct of various activities.

Article Three:

In applying the provisions of these rules, the following terms shall carry the meanings indicated alongside each:

• a- The Law: "Capital Market Law" issued by Law No. 95 of 1992.
• b- The Exchange: "Cairo and Alexandria Stock Exchanges".
• c- The Authority: "General Authority for the Capital Market".
• d- Member: "Member of the Cairo and Alexandria Stock Exchanges".
• e- Stock Exchange Board of Directors: "Board of Directors of the Cairo and Alexandria Stock Exchanges".
• f- President of the Exchange: "President of the Board of Directors of the Cairo and Alexandria Stock Exchanges".
• g- The Committee: "Stock Exchange Membership Committee".
• h- Brokerage Companies: "Companies operating in the field of securities brokerage and dealing".
• i- Personnel of the Member: "Board members, representatives, executive directors, exchange-approved executors, and employees of the member who deal directly with the public".
• j- Insiders: "Personnel of issuing companies or others who may have access to internal information and specific nature information of those companies that has not been disclosed to the trading public or published, whether to a specific class or multiple parties, which may have a clear impact on the prices of traded or tradable securities".

Article Four:

These rules shall take effect from the day following their issuance date.