EGX Chairman, Mohamed Farid signed a Memorandum of Understanding (MOU) with Mr. Mohamed Abdel Salam, Chairman of Misr for Clearing, Depository and Central Depository (MCDR), on Monday to simplify and facilitate the exchange of information and data between the two parties to complement efforts to develop and modernize the securities industry and Egypt's capital market competitiveness.
EGX Chairman said that the cooperation comes within a fruitful and constructive framework between EGX and MCDR concerning improving investment climate in Egypt through the development and simplification of the mechanisms of services related to the securities of companies and investors through the exchange of information and data electronically.
He added that the MOU includes three main axes; the first is to complete the database and information of both parties through the exchange of data and documents electronically to achieve their integration and update.
The second axis includes cooperation with MCDR to maximize the benefit of the companies that are centrally registered by clarifying the benefits listing on EGX of as a financing mechanism. This is what EGX is currently working on by analyzing the data and financial statements of those companies to comply with the requirements of the listing rules.
The third axis includes developing the skills of the employees working in the two institutions, which contributes in building leaders capable of designing policies that development and raise the competitiveness of the Egyptian capital market.
Additionally, a joint executive committee between EGX and MCDR is established to review the mechanisms that develop and find solutions to all problems related to the securities industry, as well as confirming achievement of the objectives of the MOU.
Mohamed Abdel Salam, MCDR Chairman, said that coordination and cooperation is our only approach to take necessary decisions and create policies to raise the efficiency and depth of the securities market.
He added that the MOU contributes to the further organization of the work process through the development of systems and mechanisms to regularly exchange all data between the parties on a regular basis. This contributes to the construction of an updated database is used to make sound decisions.
For his part, Mr. Mohsen Adel, said that the previous period has witnessed processing of many files, including the success of EGX Chairman in coordination with officials of GAFI to solve the problem of Advanced Pharmaceutical Packaging, which had been suspended for years. Accordingly, the company will hold its General Assembly soon to restructure the Board of Directors.
In conclusion, EGX Chairman replied to the journalists’ questions that the process of developing and modernizing Egypt's capital market will be completed in terms of trading, listing and legislation to avoid any effect resulting from listing any of the neighboring capital markets in the Morgan Stanley Emerging Markets Index.
