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EGX board amends listing, disclosure rules

EGX board amends listing, disclosure rules
Photo Credit: Arabianeye-Reuters

In a move aimed at boosting the Egyptian Exchange (EGX) trading system and achieving greater efficiency, EGX board has approved the amendments of the listing and disclosure rules’ executive procedures.

Amending 36 articles of the executive rules has been approved. Those amendments were approved by the Egyptian Financial Supervisory Authority (EFSA) chairman.
Those amendments aim to improve the levels of the shareholder rights protection, were a requirement was set that there shouldn’t be any judicial rulings issued against any of the major shareholders and board members of the companies wishing to list, or requests to move criminal proceedings by EFSA resulting of violating the capital market law and its executive regulations, or the case that one of them is in investigation.
Moreover, the new amendments organized the Initial Public Offering (IPO) procedures which are performed to fulfill the listing requirements.
The amendments included deepening and clearly identifying the governance application scope to attract companies that have a clear governance structure. From the other hand, the amendments have set clear disclosure controls for the acquisitions or exits operations performed on assets representing 10% or more of the total shareholders’ equity.
The amendments also identified the controls to list the issued capital increase resulting of mergers, and the controls to list the amendments resulting from restructuring the listed companies by division and adjusting the nominal value, as well as clear disclosure regulations for the cash increase usage aspects after listing the shares’ increase.
EGX Chairman Mohammad Omran noted that the new amendments would ensure the application of the best listing and disclosure practices to keep track with international standards.
The main goal is to facilitate listing and capital’ increases process, while maintaining shareholders’ rights, Omran said, stressing that the additional amendments of governance will help expand the corporate governance scope before listing in EGX.

Photo Credit: Arabianeye-Reuters