الهيئة العامة للرقابة المالية

FRA Extends Annual Financial Filing Deadline for Listed Companies to End of April – Wednesday 18 March 2026

As part of the Financial Regulatory Authority’s (FRA) ongoing commitment to foster a favorable business environment that enables companies to grow and evolve, FRA Board of Directors has issued Decision No. 65 of 2026. This decision aligns with global variables to facilitate operations for listed companies and entities under the Authority’s supervision by extending the deadlines for submitting annual financial statements.

The decision allows companies listed on the Egyptian Stock Exchange (EGX) and entities subject to FRA oversight to submit their periodic financial statements for the period ending December 31, 2025, by April 30, 2026, instead of the previous deadline of March 31, 2026.

Additionally, the decision includes an extension for periodic financial statements for the period ending March 31, 2026. The new submission deadline is May 31, 2026, instead of May 15, 2026.

FRA continues to move forward with issuing the necessary regulations, controls, and legislations to empower non-banking financial institutions to achieve their financial and operational targets. The Authority remains focused on ensuring market stability, the integrity of transactions, and the protection of all stakeholders’ rights, while providing systems that ensure transparency and efficiency to strengthen the role of non-banking financial activities in the national economy.

FRA Grants LumenSoft Preliminary Approval as Third Company to Join Regulatory Sandbox – Saturday 14 March 2026

Dr. Islam Azzam:

• Embracing advanced financial technology aligns with the national vision to position Egypt as a leading regional FinTech hub.
• Advanced digital verification for non-Egyptians is key to streamline market entry and accelerate foreign investment into Egypt.

As part of the Financial Regulatory Authority’s (FRA) strategy to promote FinTech and develop digital services within non-banking financial activities, the Authority has granted LumenSoft preliminary approval to join the Regulatory Sandbox (FRA Sandbox). This makes LumenSoft the third company to receive such approval since the Sandbox’s inception.

LumenSoft, a specialist in digital identity, e-verification, and digital contracts, submitted a project designed to verify the identities of non-Egyptians using electronic passports (e-Passports). By leveraging Near Field Communication (NFC) technology, the project enables a seamless, end-to-end digital identity verification process via mobile devices.

Dr. Azzam affirmed that these digital mechanisms are essential for easing the entry of foreign investors into the Egyptian market and enabling their access to non-banking financial services. He noted that streamlining Know Your Customer (KYC) procedures through secure digital verification will significantly enhance the flow of foreign capital into the domestic market.

LumenSoft project relies on reading and validating e-passport data in accordance with the International Civil Aviation Organization (ICAO) Public Key Directory (PKD) standards. This ensures the highest levels of process security and data integrity.

FRA Chairman added that embracing advanced tech solutions underscores Egypt’s vision to become a regional FinTech leader. He emphasized that supporting digital innovation and upgrading the financial sector’s technological infrastructure enhances the Egyptian market’s competitiveness and attracts more global FinTech firms.

Dr. Azzam explained that FRA Sandbox is a sophisticated regulatory tool designed to foster financial innovation. It provides a regulated environment for companies to test innovative business models and technological solutions before a full market launch. This strengthens the market’s capacity to absorb modern digital solutions and accelerates the digital transformation of financial services.

Following its entry into the Sandbox, LumenSoft will live-test its digital ID solutions and e-passport integration. By syncing with Azimut Egypt, the model facilitates secure, regulated investment processes under the FRA’s oversight.

Ahmed Khalifa, Executive Director of Regulatory Sandbox, stated that the project serves as a practical model for leveraging digital transformation to enhance financial services. He added that it empowers non-Egyptians to access investment opportunities across various asset classes in Egypt, thereby driving the efficiency and competitiveness of the non-banking financial sector.

FRA Approves New Short-Selling Rules to Boost Stock Market Liquidity  – Monday 9 March 2026

• A real-time, transparent lending system managed exclusively through MCDR.
• Lending requests are prioritized based on three standardized criteria.
• Participating firms must meet strict requirements across three primary pillars.
• Transactions require 150% initial collateral, comprising full share value plus a 50% cash margin.
• Daily re-valuation of borrowed securities and collateral based on closing prices.
• A maximum cap of 5% for a single lender and 2% for a single borrower of the listed company’s total free-float shares.

Financial Regulatory Authority (FRA) has issued a new regulatory framework governing Short Selling. Designed to enhance market efficiency, boost liquidity, and deepen the exchange, the mechanism aims to stabilize trading while safeguarding investor rights. The new system is built upon the following pillars:

1. Centralized Lending System

The regulations mandate a Centralized Lending System characterized by transparency and real-time oversight. Operations are conducted exclusively through the execution agent, Misr for Central Clearing, Depository and Registry (MCDR).

The decree – issued by the Authority prior to Dr. Mohamed Farid’s appointment as Minister of Investment and Foreign Trade – defined the priority criteria. Lending orders are executed based on the lowest offered lending rate, followed by the longest duration, and finally, the time priority of order entry into the system.

A 150% pre-execution cash collateral is mandatory for all open positions. This comprises 100% of the borrowed securities’ value and a 50% cash margin, subject to approved alternative collateral guidelines.

1. Key Requirements for Brokerage Firms

To ensure robust risk management, FRA has established a three-pillar compliance framework for brokerage firms:

• Solvency & Capital Adequacy: Net shareholders’ equity must be at least EGP 5 million for standalone short selling activity, or EGP 10 million if combined with margin trading. Firms must maintain a minimum Liquid Capital Ratio (LCR) of 15% for the six months preceding their application.
• Technical & Operational Efficiency: Firms must establish a specialized department with at least three certified experts. Additionally, they must implement advanced accounting systems – validated by an external auditor- to ensure compliance with record-keeping and internal audit requirements.
• Integrity & Client Asset Protection: Firms must have a clean regulatory record (no judicial rulings or administrative measures) for the six months prior to the application. Furthermore, “Security Margins” must be held in segregated accounts and may only be invested in fixed-income instruments upon client agreement.

III. Concentration Limits & Regulatory Caps

To maintain market stability and prevent price manipulation, FRA has set the following exposure limits:

• Borrowable securities may not exceed 25% of a listed company’s total free-float shares.
• A single lender (and its related group) is capped at 5% of free-float shares, while a single borrower (and its related group) is capped at 2%.

1. Daily Oversight & Margin Call Mechanisms

A rigorous monitoring system ensures collateral adequacy throughout the lending period:

• Borrowed securities and all provided collateral are revalued daily based on stock exchange closing prices.
• If collateral value drops to 140%, the client must replenish it to 150% within two business days. Failure to comply triggers an automatic buy-back/return of shares without further notice.

1. Financial Rights & Mandatory Termination

FRA ensures that original owners (lenders) retain their economic interests:

Lenders retain all financial rights, including cash dividends, bonus shares from capital increases, subscription rights, and any other corporate actions.

The decree also outlines the mechanisms for returning shares, which can be executed either through the borrower’s existing securities balance or by re-purchasing shares from the open market using the sale proceeds.

The decree specifies three cases that necessitate the immediate termination of the lending process to ensure the stability of legal positions.

• The security is removed from the list of eligible short-selling stocks.
• Legal actions occur, such as asset freezes, disposal bans, or the death of the investor.
• Corporate restructuring, including mergers, acquisitions, tender offers, demergers, or liquidation.