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Egyptian President Hosni Mubarak issued the presidential decree no. 191/2009 to be enforced as of 1st of July 2009, concerning provisions regulating the Egyptian Exchange and its financial affairs.
The decree stipulated that Egyptian Exchange shall assume its specializations according to laws and regulations thus ensuring soundness of securities' trading, efficiency of dealers' performance, proper of functioning and stability of transactions in the market.
Minister of Investment, Mahmoud Mohieldin said that the presidential decree stressed that Egyptian Exchange should take all necessary measures and procedures, to avoid violation of provisions which regulate dealings in market, monitor violation and exert efforts to correct them and face their impacts.
The decree determined competences and missions of EGX Board of Directors. Among these missiond, the issuance of decisions and rules necessary for proper functioning, soundness and stability of transactions in the Egyptian Exchange. This is in addition to the formation of committees to list securities on EGX tables and committees of trading and membership among others, setting system of membership and procedures of members' listing and monitoring, as well as rules for conduct of work and providing information necessary for dealers in the Stock Exchange.
Furthermore, the decree stipulated that Chairman of the Stock Exchange should immediately report Chairman of the General Authority for Financial Control with any key developments or influential events on the Stock Exchange, besides violations and breaches of brokerage companies and those operating in the field of securities.
Also, the presidential decree determined that the Stock Exchange must has a chairman and deputy chairman to be appointed by the Prime Minister based on nomination of the competent minister.
The decree also covered formation of EGX Board of Directors under chairmanship of Chairman and membership of:
- Deputy Chairman.
- A representative for the Central Bank of Egypt to be selected by CBE Governor.
- Three members as companies’ representatives operating in the field of securities to be elected according to rules and procedures issued by a decision from the competent minister.
- One representatives for the custodian banks to be elected according to rules and procedures issued by a decision from the Board of Directors of Union of Banks.
- Two representatives of companies listed in the Egyptian Exchange from companies not operating in the field of securities, provided that one of them is representing medium and small companies to be elected according to rules and procedures issued by a decision from the competent minister.
