FRA sets maximum limit for young people under 21 years old to trade on EGX

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Mon, 22 Feb 2021 - 03:43 GMT

FILE -Head of the Egyptian Financial Regulatory Authority (FRA) Mohamed Omran

FILE -Head of the Egyptian Financial Regulatory Authority (FRA) Mohamed Omran

CAIRO – 22 February 2021: Head of the Egyptian Financial Regulatory Authority (FRA), Mohamed Omran, issued Executive Decision No. (23) for 2021 after the Authority’s Board of Directors approved setting the maximum limit for dealing in the stock exchange for groups of young people from the age of 16 to less than 21 years at LE 10,000.

 

Omran stated that the decision includes that direct trading on the stock exchange be limited to buying and selling without allowing the use of margin buying mechanisms or borrowing securities for the purpose of selling, according to a statement issued, Sunday.

 

He said that the determination of the maximum came in light of the statistics presented by the competent departments of the authority showing that the number of coded dealers who own shares in the companies listed on the Egyptian Stock Exchange reaches about 383,000 dealers, of whom 337,000 are 88 percent who own portfolios worth LE 3.4 billion with an average value of the portfolio LE 10.000.

 

The head of the authority added that the statistics show that 56 percent or nearly 215,000 dealers own portfolios of less than LE 5,000 Egyptian, with a total value of LE 263 and an average value of LE 1,220 for the wallet.

 

He mentioned that two-thirds of the dealers, or 253,000, have portfolios of less than LE 10,000, with a total value of LE 540 million, with an average of LE 2,140 per wallet. On the other hand, statistics show that there are 2,280 legal persons who own about LE 571 billion, an average of a quarter of a billion or LE 250 million for the wallet.

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