FRA: Credit scoring of bourse investors for new contracts only

CAIRO - 15 August 2018: Financial Regulatory Authority (FRA) Deputy Chairman Khaled el Nashaar said the credit scoring will be applied on new contracts to be signed by investors seeking to benefit from the bourse's buying on margin mechanism.

The current contracts will not be affected by the decision, he asserted in statements to MENA on Wednesday.

Nashaar noted that an investor's credit scoring will be examined at the time of inking a new contract with a brokerage company at the bourse without looking back to his/her history.

Buying on the margin is no more allowed for under-age clients, he said.

Meanwhile, he noted that credit rating of investors at the bourse is applicable in various stock markets of the world, expounding that the measure was meant to protect the market from crises and fluctuations of the capital market.

The brokerage companies will resort to the Egyptian Credit Bureau I Score to inquire after investors' credit scoring, he said.