REGULATION WATCH- SMEs looking to IPO on the Nilex are getting a 50% break on evaluation fees charged by the Financial Regulatory Authority (FRA), the regulator said in a statement. The reduction would also apply to fees levied to qualifying companies seeking regulatory approval on market activities such as capital increases, M&A, and bond and sukuk issuances. The decision follows recommendations from the International Organization of Securities Commissions designed to encourage newcomers to join the capital markets and lower financial barriers, FRA Chairman Mohamed Omran said.

Not all the recent changes have given small firms a leg up: New rules forcing Nilex-listed firms to contract with official corporate sponsors hasn’t gone down well among most firms on the exchange. More than half complained to the regulator last month that the requirement imposes an additional financial burden on companies, squeezing bottom lines during a period of economic uncertainty. The EGX has defended the rules, arguing that providing more expertise and support to small-caps will boost trading volumes and make it easier for them to upgrade to the main market.