The State Council is set to discuss amendments to the Capital Market Law and its regulations made by the Egyptian Financial Supervisory Authority (EFSA) on Saturday, a government source said, on condition of anonymity.
The source told Daily News Egypt that the amendments were scheduled last Saturday for discussion, but were postponed.
The EFSA announced on 19 August the approval of the Economic Legislation Committee of the Supreme Committee for Legislative Reform of the proposed amendments to the Capital Market Law, with only a few comments on the draft.
The highlights of these amendments include intensifying anti-money laundering procedures, and adding 18 articles for a new financial instrument to activate sukuk (Islamic bonds) as a new tool in the capital market.
Moreover, the amendments include modifying the article on fees for registering securities in the stock market to 0.002% as a maximum, instead of being fixed at 0.002%, to encourage small businesses
The amendments also aim to establish an association for securities firms for the first time in Egypt, following suit with the associations established as per laws for banks, insurance, real estate finance and micro financing. This will contribute to the development of professional practices, according to the sources.
In addition, amendments also include the modification of regulations for purchases and acquisition offers to protect minority rights, as well as more accurate tariffs of private and public offerings.
The EFSA aims to add new financial instruments through these amendments, such as sukuk and subscribed bonds, which will comply with the mechanisms of government agencies, such as the New Urban Communities Authority.