Prime Minister's Decree No. 1347 of 2019

Amending Certain Provisions of the Executive Regulations of the Capital Market Law

Prime Minister

After reviewing the Constitution;
After reviewing Law No. 159 of 1981 on Joint Stock Companies, Partnerships Limited by Shares, Limited Liability Companies, and Single-Person Companies; And Law No. 95 of 1992 on the Capital Market; And Law No. 10 of 2009 regulating supervision over non-banking financial markets and instruments; And Presidential Decree No. 192 of 2009 issuing the Basic Statute of the Financial Regulatory Authority; And Presidential Decree No. 279 of 2018 delegating certain authorities to the Prime Minister; And Investment Minister Decision No. 96 of 1982 issuing the Executive Regulations of the aforementioned Companies Law; And Minister of Economy and Foreign Trade Decision No. 135 of 1993 issuing the Executive Regulations of the Capital Market Law; And after obtaining the opinion of the Financial Regulatory Authority; And based on the Council of State's opinion;

Decided

(Article One)

The following texts shall replace the provisions of Item (4) of Paragraph One of Article (167), the preamble of Paragraph One and Item (4) of Paragraph Two of Article (183), Item (6) of Paragraph One and Paragraph Two of Article (183) bis (3), and Paragraphs Two and Three of Article (183) bis (4) of the Executive Regulations of the Capital Market Law issued by Minister of Economy and Foreign Trade Decision No. 135 of 1993:

Article (167) Paragraph One – (Item 4)

4- Periodic valuation of the assets and securities in which funds invest their capital, at least once every six months, and at least once every three months if the fund is listed on the stock exchange, taking into account the appointment of a specialist and financial advisor for asset or security valuation, whose determination and valuation criteria shall be set by a decision of the Authority's Board of Directors.

Article (183) Preamble of Paragraph One

Without prejudice to the investment regulations for real estate investment funds stipulated in Article (183) bis, the real estate fund's investments must be in one or more of the following fields:

Article (183) Paragraph Two – (Item 4)

4- These assets shall be valued by one or more real estate valuation experts registered with the Authority.

Article (183) Paragraph One – (bis 6)

6- Valuation of real estate assets prior to their purchase or sale by one or more real estate valuation experts registered with the Authority, who must be independent of any related parties, and must adhere to the Egyptian Real Estate Valuation Standards issued by the Authority's Board of Directors when preparing their report.

Article (183) Paragraph Two – (bis 2)

The investment manager shall take all necessary steps to enable the valuation expert to perform their duties, particularly by preparing the documents and information required to complete the valuation process.

Article (183) Paragraph Two – (bis 4)

The management services company shall also carry out periodic valuation procedures for the fund's total assets at least every six months, and at least once every three months if the fund is listed on the stock exchange, based on a report prepared by one or more real estate valuation experts registered with the Authority. This valuation aims to:
1- Assess the real estate market conditions.
2- Determine a reference price for the fund's units by dividing the fund's net asset value by the number of outstanding units.
3- Use the valuation as a reference when selling assets.
4- Monitor the progress of the fund's project implementation, its actual costs, or the market value of assets during the implementation period.

Article (183) Paragraph Three – (bis 4)

The valuation expert is required to send a copy of their report to the fund, the investment manager, the management services company, and the auditor.

(Article Two)

A final paragraph shall be added to Article (183) of the aforementioned Executive Regulations of the Capital Market Law, reading as follows:

As follows:

In all cases, approval from the unit holders' assembly is required if fund capital is directed toward any investments or real estate assets directly or indirectly owned by any party related to or affiliated with the fund. This requirement is exempted for investments or real estate assets owned by government agencies and public authorities, provided they do not exceed 25% of the fund's assets, and the assets must be valued by a real estate valuation expert registered with the Authority.

(Article Three)

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

Prime Minister
(Dr. Mostafa Madbouly)

Issued at the Prime Minister's Office on June 9, corresponding to 5 Shawwal

Copies sent to Mr./
Chairman of the Financial Regulatory Authority Head of the Prime Minister's Advisory Council (Advisor/ Sherif El-Shazly)