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The new Capital Market Law in 10 points

Egypt’s parliament ratified the amendments of the Capital market law that aims to increase competitiveness and create an inclusive economic climate.
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Egypt’s parliament ratified the amendments made to the Capital market law that aims to increase competitiveness and create a more inclusive economic climate. Here are the highlights of the amendments:

1- 45 articles out of a total of 75 of the Capital Market Law of 1992 were amended.

2- The law offers more protection to minority stakeholders, especially in acquisition cases.

3- It gives the power to the Egyptian Exchange to lower registration fees in case of small businesses to encourage small companies to compete in the market.

4- The law also introduces Sukuks to the exchange market. Sukuks are bonds compliant with Sharia law.

5- The law puts the foundation for establishing a union for securities companies.

6- The amendments include a harsher punishment for crimes related to financial malpractice including any action that compromises trading fairness.

7- The law also introduces commodities exchange and futures trading to the Egyptian market.

8- The recent amendments also allow for unwinding the stock market trades in case of international money laundering suspicions.

9- These amendments were introduced by the Ministry of Investment and International Cooperation in April 2017 when they were approved by the cabinet and up for review by the state council.

10- Minister of Investment Sahar Nasr stated that these amendments aim to support the non-banking financial sector in Egypt in an attempt to achieve a more inclusive economy in Egypt.