Back to the complete issue
Monday, 11 June 2018

FRA will be tight on shorts, pushes through amends to listing regulations

REGULATION WATCH- Hear ye, brokers looking to short: Meanwhile, FRA is looking into imposing “strict” compliance regulations for brokerages looking to get into short selling, FRA deputy head Khaled El Nashar reportedly said on Sunday. The regulations will ensure that only brokerages with the balance sheet strength to offer short selling will be allowed to offer the service, adding that he expects very “few brokerages” to win licenses to short.

Limits on which shares to short and by how much: FRA is also planning to limit shorting to shares that meet certain conditions based on a company’s size, he added. FRA also plans to limit the number of shares a short seller can borrow for a short position. The regulations, El Nashar suggested, should be ready soon.

 FRA amends listing regulations to comply with amendments to the Companies Act: The board of the Financial Regulatory Authority (FRA) approved on Sunday amendments to listing regulations, bringing them in line with the most recent amendments to the executive regulations of the Companies Act. The most prominent fixture of yesterday’s changes is the establishment of a weighted voting system when shareholders vote on board members, according to a statement from FRA picked up by Youm7. The amendments also allow shareholders to ask questions to the board ahead of a general assembly meeting, Ahram Gate reports. FRA is expected to issue a statement clarifying the details of the amendments.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.