الهيئة العامة للرقابة المالية

Dr. Islam Azzam, FRA Chairman:

“The Resolution resolves the delays and execution challenges of final rulings and improves investment climate.”

“It ensures swift execution while maintaining legal stability and respecting the finality of judicial rulings.”

“The policy defines the execution requirements for MCDR, outlines coordination with EGX and streamlines final settlement.”

FRA Board of Directors chaired by Dr. Islam Azzam has issued Resolution No. 99 of 2026, establishing a new system to execute judicial and arbitration rulings on unlisted securities. Published in the Official Gazette ( Al Waqai Al Misriyya), this regulatory milestone aims to streamline ownership transfer procedures for securities pursuant to final court judgments, arbitration awards, and other executive writs mandating the sale, purchase, or transfer of ownership.

Dr. Islam Azzam noted that the Resolution addresses a chronic issue in the market regarding delays or the inability to enforce court judgments and arbitration awards on unlisted, centrally deposited securities. The new system respects the finality of judicial rulings and provides the agility needed for modern financial market transactions.

He added that the Resolution ensures the effective enforcement of judicial and arbitration rulings in Egypt which positively reflects on the attractiveness of the investment climate.

The new system allows concerned parties to submit execution requests for court judgments, arbitration awards, or other executive writs to Misr for Central Clearing, Depository and Registry (MCDR). Requests must be submitted using a designated form prepared by the Company, accompanied by the executive copy of the judicial ruling or arbitration award, along with proof of proper legal notification to the judgment debtor. Additionally, in cases where monetary payment is required by the executive writ, proof of depositing the value of the underlying securities into the brokerage firm’s account must be provided.

To ensure transaction stability and legal certainty, applicants must attach all necessary regulatory approvals required for transferring the securities. The submission must also include the beneficiary’s National ID (or passport for foreign nationals), a commercial registry extract for companies, or foundational documents for non-corporate entities. Lastly, the applicant must sign a declaration certifying that all documents are valid, the executive writ is active and uncancelled, and the filing is free from any active execution injunctions that have not been legally dismissed.

Under the Resolution, Misr for Central Clearing, Depository and Registry (MCDR) will conduct a compliance review of these conditions and requirements. It will subsequently notify the Egyptian Exchange (EGX) of the proposed ownership transfer. The EGX is required to respond within a maximum of one week, disclosing any regulatory or legal impediments that would prevent the transfer from being executed.

Subsequently, MCDR will transfer ownership of the securities between the accounts of the concerned parties held with custodians, in accordance with the executive writ. It will then transfer the value of the securities to the beneficiary’s bank account, notifying the respective custodian immediately upon transfer and complete the settlement process in accordance with the Company’s operating technical systems.

The Resolution mandates that MCDR thoroughly document all operations executed under the aforementioned procedures, retain all supporting documentation, and notify the Financial Regulatory Authority (FRA) immediately upon settlement completion.

Dr. Islam Azzam explained that the new regulatory framework strikes an optimal balance between market efficiency and legal security. By accelerating the execution of final rulings on unlisted securities, the new Resolution protects the rights of all involved parties. This is achieved by verifying the finality of each judgment, ensuring the resolution of any execution injunctions and fulfilling the specific statutory requirements governing ownership transfers.