EGX amends rules governing GDRs issuance, transfer

CAIRO – 1 August 2017: The Egyptian Exchange (EGX) Chairman Mohamed Omran issued Tuesday amendments for the executive rules and procedures of issuing and transferring of the global depository receipts (GDRs).

On July 30, the EGX board has approved to lift restrictions on Egyptian investors who buy GDRs by purchasing shares on the EGX in Egyptian pounds, allowing them to receive their returns in U.S. dollars.

The amendments stipulated that in case Egyptian clients transferred to GDRs then sold them outside Egypt, local custodian shall transfer their yields to the account of the client in one of the banks under the supervision of the Central Bank of Egypt (CBE), the EGX statement said.

At all events, all transactions of the Egyptian shareholders even by selling, purchasing or transferring from or to GDRs shall be through the EGX members.

Omran added that the approval of the Egyptian Financial Supervisory Authority (EFSA) on the amendments comes as a part of the regulatory and supervisory bodies’ tendency to follow the latest developments in the economic and financial reform plan.

In 2015, EGX said that GDR returns could only be taken in that same local currency.