The status of security brokers is good, although they carried out funding operations over the past period. And the credit checking presented by companies on a daily or weekly basis didn’t uncover any violations or weak financial positions resulting from the provision of credit facilities, said an official at the stock exchange market.
Although the stock exchange market has halted the trading of the stocks of 29 companies last week after their stocks increased unjustifiably, the liquidity of those companies didn’t drop below the minimum level, which is 15 percent of the total capital, he added.
The companies provided financing services, but they used the private ownership rights of stockholders and not their liquid money, and no violations were detected in this respect, he said.
He stressed the solvency rules and the regulation of the brokerage firms have greatly boosted their financial position, especially as these rules had been introduced in the proper time ahead of the global financial crisis. This helped ease the impact of the global crisis on the Egyptian market.
Relevantly, an official at the Egyptian Financial Supervisory Authority (EFSA) said the inspection department began its clampdown on the brokerage firms. The Authority would notify companies of irregularities to respond to them as a prelude to taking the suitable decision, whether by ordering a suspension or warning them to avoid these irregularities.
For his part, Talal Tawfiq stock market expert stressed the need for the brokerage firms to appoint internal auditors and accountants registered with the EFSA to uncover mistakes before they encounter grave crises.
Translated from the Arabic Edition.