FRA allows companies to purchase treasury shares on same day of notification

CAIRO – 1 March 2020: The Egyptian Financial Regulatory Authority (FRA) agreed to amend some provisions of Article 51 of the rules for listing and writing off securities on the stock exchange for dealing in treasury shares.

FRA clarified in a filing to the Egyptian Exchange (EGX) that the amendment includes the possibility of implementation of listing or writing off the securities on the day of the notification without observing the period of advance notification, which was scheduled at least three working days before the proposed date of implementation.

The authority pointed out that the decision comes within the framework of recent events that have occurred in the global financial markets and the sharp decline in the Arab and foreign stock exchanges, and in the keenness of FRA to protect the Egyptian financial markets and protect the rights of traders.

The Authority issued temporary measures that allow the companies to notify the Stock Exchange on the proposed day of implementation for the purchase of treasury shares through the open market and at the price of the security during the trading session, provided that the amount required to be purchased does not exceed the legally established percentage of 10 percent of the company’s shares.

Global and Arab stock markets witness a wave of declines, with the fears of the spread of the Coruna virus.