Financial Regulatory Authority
The program provides insurance against accidents that might involve Egyptians working abroad, said acting chairman of the FRA Mohamed Omran during a conference on expat remittances that kicked off here earlier Sunday.
The new controls will allow natural or legal persons to invest in government securities and financial instruments through the depository and settlement members of the newly created company, according to a statement from the Financial Supervisory Authority Monday.
The amount offered by ABC for the acquisition is estimated at LE 6.7 billion ($427 million).
A well-placed source at FRA said the approval came in line with the capital market law no 95 of 1992 and its executive statute.
By assuming this new position, Egypt becomes Vice Chairman of the IOSCO for the first time in the history of the Egyptian capital market since its inception, which is more than 130 years old, according to a statement issued, Monday.
It amends the articles of association of the Investor Protection Fund from Non-Commercial Risks to expand the insurance umbrella covered by the Fund to include the risks resulting from the activities of companies whose papers are registered or financial instruments in the Egyptian Stock Exchange.
This is aimed at maximizing the efficiency of the capital market and achieving transparency in the mechanisms of dealing with activities specialized in securities, following the approval of the Authority’s Board of Directors in its remote meeting.
Omran clarified that the new center will focus on strengthening the Egyptian economy’s existence on the global green economy map as the Middle East and Africa (MEA) region’s first sustainable finance center.
Omran clarified that this will take place by allowing factoring companies to provide the service of deduction of the future financial rights of stock brokerage companies arising from engaging in the activity of buying securities on margin.
FRA indicated in a report, Saturday, that the number of microfinance beneficiaries reached 3.2 million by the end of 2020, up from 3.1 million during 2019.
Omran stated that the decision includes that direct trading on the stock exchange be limited to buying and selling without allowing the use of margin buying mechanisms or borrowing securities for the purpose of selling, according to a statement issued, Sunday.
Azzam has a wide experience in fields of investment and financing.
The contracts recorded LE 58.6 billion during 2020, compared to LE 55.9 billion during 2019, marking an increase of 4.8 percent.
This initiative comes within the framework of facilitating the compliance of microenterprise finance agencies and their project owners to comply with the requirements of Law No. (18) of 2019 regulating the "use of cashless payment methods."
The working group includes representatives from each of the Central Bank, the Egyptian Stock Exchange, the Egypt Central Clearing, Depository and Registry Company, the Federation of Egyptian Banks, the Egyptian Insurance Union, a representative of investment banks and the European Bank for Reconstruction and Development (EBRD).
This should make life easier for consumers who want to secure their needs of the new products, said FRA chairman Mohamed Omran in a statement Tuesday.
FRA included the amounts invested in treasury bills and government bonds within its budget under the income item, which resulted in the volume of its budget for the fiscal year 2021/2020 to reach a total amount of LE 1.054 billion.
Chairman of the authority Mohamed Omran said services charges on trading in listed bonds will be reduced to be 5 per 100,000 with a maximum limit of 250 pounds.
The issuance is made through a deal of Ijara Sukuk that is compatible with the provisions of Islamic Sharia; it is a negotiable and expedited payment and is not transferable into shares with a maturity of 5 years.
Omran said that this precautionary measure is taken in line with the state measures to curb the spread of coronavirus.