Egypt - The Financial Regulatory Authority (FRA) has endorsed the Egyptian Exchange’s (EGX) initiative to streamline the registration process for clients of investment funds and foreign companies in the stock market, as well as the activation of dormant accounts.

Aligned with the government’s strategy to draw more foreign investment into the stock market and promote trading of all listed securities and financial instruments, these measures have been developed in close collaboration with the FRA.

Ahmed El-Sheikh, Chairperson of EGX, stated that the amendments aim to simplify procedures for updating data of foreign investment institutions currently in the market and ease the registration process for new foreign entities entering the Egyptian market. These changes are expected to benefit foreign companies and investment funds of all types.

The amendments extend the validity of codes for foreign institutions to five years from the client’s registration date with EGX.

Additionally, EGX has proposed to FRA an increase in 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 be responsible for identifying, activating, and managing dormant accounts, 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 prevent potential conflicts in managing dormant accounts.

© 2022 Daily News Egypt. Provided by SyndiGate Media Inc. (