Starting today, banks and other financial institutions will be allowed to establish mutual funds
REGULATION WATCH- As of today, banks and other financial institutions will be allowed to establish mutual funds, as per a decision from the Financial Regulatory Authority (FRA) published in the Official Gazette, Al Shorouk reports. Banks that want to set up mutual funds must seek CBE approval, while other financial institutions such as insurance companies and pension funds must seek approval from FRA. The FRA signed off on the new regulations last month, just weeks after allowing securities and brokerage firms to trade in investment funds, which had previously been accessible only through banks.
FRA raises daily limit on EGX intraday trading: The avalanche of new regulations from the board of the FRA continues: It has approved raising the daily limit on the percentage of shares that can be traded intraday, FRA said in a statement picked up by Ahram Gate on Monday. The daily limit was doubled to 0.01% of a company’s total shares, from 0.005%. The new regulations also allow brokers to trade on the same stock multiple times in the same day.
FRA also approved setting a three year grace period for listed companies that have not yet complied with new listing regulations. Listed companies which have not met new listing regulations will be moved to the EGX’s over-the-counter (OTC) market from the main market for a three year period until they can meet requirements, said FRA Chairman Mohamed Omran. Omran also stated that OTC dealmarket transactions will require a non-objection from FRA.