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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.

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