الهيئة العامة للرقابة المالية

• Raising the minimum transaction value for transferring ownership of unlisted securities to EGP 60 million. Transactions above this value must be presented to the EGX Operations Committee for approval and require FRA’s no-objection
• Settlement period for securities transactions using bank deposits has been extended to two months, eliminating the need for FRA’s no-objection

FRA Board of Directors chaired by Dr. Mohamed Farid, has issued Decree No. 303 of 2024. This decree amends the Board’s previous Decree No. 94 of 2018, which outlines the rules and procedures governing trading in unlisted securities and the transfer of their ownership.

The decree include raising the minimum transaction value for transferring ownership of unlisted securities to EGP 60 million, up from the previous threshold of EGP 20 million. Transactions above this value must be presented to the EGX Operations Committee for approval and require  FRA’s no-objection before proceeding. Transactions below EGP 60 million will adhere to the standard notification process on the Exchange.

This decree aligns with FRA’s ongoing efforts to improve the business environment, reduce operational costs and timelines and enhance the competitiveness of Egypt’s non-banking financial markets.  In addition, these amendments will streamline the paperwork involved in completing over-the-counter transactions, resulting in faster and more efficient processes.

Furthermore, the decree authorizes brokerage firms to accept settlements, provided the buying party has settled the purchase price or obtained a discharge of liability. However, the firm must obtain the Authority’s no-objection prior to execution based on the firm’s documentation and responsibility.

The settlement period for securities transactions using bank deposits has been extended to two months instead of one. For deposits older than two months, prior Authority approval is required before submitting the transaction request.

The issuance of this decree aligns with FRA’s ongoing efforts to develop and enhance the non-bank financial markets under its supervision. The Authority aims to create a more conducive business environment for these markets by streamlining procedures, reducing processing times, and ensuring that market participants have efficient, transparent, and easy access to non-bank financial services.