EFSA issues new regulations for holding stocks in brokerage firms
The Egyptian Financial Supervisory Authority (EFSA) has issued new regulations oninvestment in brokerage firms, EFSA chief Sherif Samy announced yesterday, Al Borsa reports. Under the new policy, which Samy says complement recent amendments to the executive regulations of the Capital Markets Act, the authority must sign off on any transaction in which an individual or entity will acquire 10%, 25%, 33%, 50%, 66%, or 100% of a brokerage firm’s capital. According to Samy, investors will not be required to get the green light from EFSA to increase their holdings within their respective tier. Institutional investors in brokerage firms will not be required to seek approval so long as they will not exercise effective control over any brokerage firm. EFSA has been tightening regulation of capital markets over the past several months.