- Streamlined Registration Process: EGX’s initiative to simplify client registration processes for investment funds and foreign companies, as endorsed by the Financial Regulatory Authority (FRA), reflects a strategic move to attract increased foreign investment and promote trading of listed securities and financial instruments in alignment with the government’s objectives.
- Facilitation for Foreign Entities: Amendments proposed by Ahmed El-Sheikh, Chairperson of EGX, aim to streamline procedures for updating data of foreign investment institutions in the market, making it easier for existing entities and new foreign players entering the Egyptian market.
- Extended Validity and Account Management: Noteworthy amendments include the extension of the validity of codes for foreign institutions to five years, improving their operational efficiency.
The Financial Regulatory Authority (FRA) has given its approval to the Egyptian Exchange’s (EGX) initiative aimed at streamlining client registration processes for investment funds and foreign companies, alongside the activation of dormant accounts, according to media reports.
Aligned with the government’s strategy to attract increased foreign investment to the stock market and boost the trading of listed securities and financial instruments, these measures were developed in close collaboration with the FRA.
According to Ahmed El-Sheikh, Chairperson of EGX, the amendments seek to simplify procedures for updating data of foreign investment institutions currently in the market and facilitate the registration process for new foreign entities entering the Egyptian market.
These changes are anticipated to benefit a wide array of foreign companies and investment funds.
The amendments also include an extension of the validity of codes for foreign institutions to five years from the client’s registration date with EGX.
EGX has proposed an extension of the period defining dormant accounts, currently set at 12 months without trading activity, to better accommodate all investors, both Egyptian and international.
El-Sheikh clarified that EGX will now take on the responsibility of identifying, activating, and managing dormant accounts, marking a shift from the previous arrangement with central depository and registration companies.
This move is part of EGX’s broader effort to enhance investor facilitation and mitigate potential conflicts in managing dormant accounts.
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