Capital Market Law
According to what was stated by the General Authority for Investment and Free Zones, the most important amendmentsَ to the Capital Market Law No. 95 of 1992 came to introduce new financial instruments to the stock exchange, including instruments, and to allow the establishment of a stock exchange for commodities and futures contracts.
These amendmeَnts allow attracting a large segment of local and Arab investors, which refuse to invest in Fixed income tools by making available new financial instruments for investment such as Islamic banks and Takaful insurance companies.
The stock exchange of commodity contracts also allows dealers to agree on the details of buying and selling a commodity at a long-term price, which means the seller’s agreement to deliver a certain quantity of a commodity at a future date, in exchange for a price. It is determined at the conclusion of the contract, regardless of the price of the commodity on the day of delivery. These futures contracts can be traded and transferred from one trader to another.
Through these amendmentَs, the government aims to control the rhythm of the market, achieve transparency in trading commodities according to supply and demand, combat smuggling and monopoly practices, and commercial fraud, and maintain consistent and stable prices for basic commodities, such as cotton, wheat, sugar, and rice. Commodity exchanges deal in grain and its products, legumes, dry agricultural products, dairy products, poultry, livestock, meat, vegetables, and fruits, and a bulletin is issued upon closing that includes all transactions showing quantities and prices.
These amendَments also aim to provide greater protection for investors and to address any violations that may be issued by securities trading companies. In addition to the keenness of these amendments to tighten penalties against violators in dealing in the money market.
Dr. Mostafa Madbouly, Prime Minister, issued Decision No. (3456) of 2022 amending some provisions of the Executive Regulations of Capital Market Law No. 95 of 1992, published in the Official Gazette, Issue No. 38 bis (a), and it included articles regulating the work of investment funds as well as introducing new articles to regulate the issuance of Sustainable development bonds, in order to further facilitate the work of investment funds, and support the country’s efforts in achieving sustainable development goals.
Capital Market Law Amendments
According to what was stated by the General Authority for Investment and Free Zones, The executive regulations and some provisions of the Capital Market Law have been amended.
You can find out what has been amended in the regulations or in the provisions of the law from the following list:
The Executive Regulations of the Capital Market Lawَ No. 95 of 1992.
Amendment of Article 18 of the Capitaَl Marketَ Law in 1998.
Amending some provisions of the Executive Bylaws of the Capitaَl Market Law 2020.
Amending some provisions of the Capitaَl Market Law by Law 17 of 2018. pdf
Amending some provisions of the Capital Maَrket Law by Law No. 123 of 2008.
Amending some provisions of the Capital Maَrket Law in 1995.
Amending some provisions of the Capital Market Law in 1996.
Amending some provisions of the Capital Market Law in 2008.
Capital Market Law No. 95 of 1992.
Prime Minister’s Decree No. (3456) of 2022 Amending Some Provisions of the Executive Bylaws of the Capital Market Law.
The Capital Market Law contributes to the establishment of the futures exchange for the first time in Egypt
Dr. Mohamed Farid Saleh, Chairman of the Financial Regulatory Authority (FRA), issued Resolution No. (19) of 2023 amending FRA Board Resolution No. (9) of 2021 regarding the conditions, controls and procedures for licensing the practice of clearing and settlement operations for contracts traded on futures exchanges.
The first article of the decision, which was published in the Official Gazette in its issue No. 59 of 2023 issued today, Monday, stipulated that the text of item (1) of Article 1 of the Authority’s Board of Directors Resolution No. 9 of 2021 shall be replaced with the following text: 1- The issued capital of the company shall not be less than 100 million Egyptian pounds or its equivalent in foreign currencies in the stock exchange, as amended issued by the Central Bank of Egypt, and 25% of it is required to be paid upon incorporation, provided that the rest is paid with a license Practicing the activity.
The amendments to the Capital Market Law allowed the launch of futures exchanges for the first time in Egypt, and the preparation of decisions related to the activity of derivatives contracts from securities, whether through the establishment of a new futures exchange or licensing the Egyptian Exchange to practice the activity of derivatives contracts from securities registered therein, and setting controls for clearing and settlement operations on derivatives contracts from securities of the entity licensed by the Authority in accordance with the provisions of the Central Depository and Registry Law.
These rules include the regulations for licensing the practice of brokerage activity in contracts for securities brokerage firms, including in particular the solvency rules to allow companies with capabilities and solvency to license to practice brokerage activity in derivatives contracts from securities.