The Egyptian Financial Supervisory Authority approved rules and procedures on Thursday relating to the transfer of foreign securities, registered under the double-entry system and owned by Egyptians on the Egyptian Stock Exchange, to a foreign stock exchange.
In a statement on Thursday, the Egyptian Financial Supervisory Authority Chairman Sherief Sam said the procedures aim for a balance between giving an opportunity for both Egyptian investors or owners of foreign securities on any other stock exchange outside the country to take advantage of the cheaper prices of securities in Egypt, and preventing investors from resorting to a back door to transfer money abroad.
The rules include the transfer of securities through Misr al-Maqasa Company and keeping them on the company's account at an international entity affiliated with the company or international custodians, in accordance with the situation in each country, he said.
Samy pointed out that after the sale is concluded in accordance with the owner's instructions, the transaction will be settled in favor of Misr al-Maqasa's abroad affiliated entities.
The outcome of sale is transferred to the account of the al-Maqasa company in Egypt, which in turn transfers the money to the account of the client inside Egypt.
If the client wants to purchase other securities with the value of the sold stocks, these securities have to be Egyptian securities registered on the stock exchange of the same country in which the former securities were sold, or to be foreign securities registered on the stock exchange of that state, as well as the Egyptian stock exchange, Samy said.
The purchase should be concluded within 15 days the latest from the sale of the transferred securities from Egypt. After the deadline, sale proceeds are transferred to the client's account in Egypt, he mentioned.
In all cases, the securities transferred abroad or the proceeds of its sale or output of its distribution cannot be transferred from the account Misr al-Maqasa to the owner or a third-party except only for the purpose of buying and selling.
Edited translation from MENA