Egypt’s FRA allows investment fund companies to finance purchases of securities on margin

Egypt’s FRA allows investment fund companies to finance purchases of securities on margin

FILE - FRA Chairman Mohamed Omran







CAIRO – 4 April 2021: Chairman of the Financial Regulatory Authority (FRA), Mohamed Omran, issued Executive Decision No. 46 of 2021 to allow companies licensed to practice the activity of managing investment funds to manage the financing of purchases of securities on margin.



Omran explained in a statement, Sunday, that this is aimed at maximizing the efficiency of the capital market and achieving transparency in the mechanisms of dealing with activities specialized in securities, following the approval of the Authority's Board of Directors in its remote meeting.

 

He said that the company licensed to practice the activity of managing investment funds must commit to contracting with securities brokerage companies that have obtained the approval of the Authority to engage in the activity of buying on margin for securities and to determine the rights and obligations of each party.

 

“Taking into account that