The Listing Committee of EGX is formed by a Decree from EGX Board of Directors. The Committee is responsible for implementing the listing and delisting rules at EGX issued by Decree from EFSA Board of Directors no. 11 for the year 2014 in 22/1/2014 and amendments. EGX Listing Committee is as well responsible for implementing the Executive Regulations of the listing and continuing obligations and delisting securities at EGX issued by a Decree of EGX Board of Directors 11/2/2014 and approved by EFSA Chairman in 12/2/2014 according to its final modifications and the related decrees. The decrees of the Listing Committee are issued based on the prepared memos from both Listing Division and Disclosure Division at EGX.
Members of Listing Committee
The Chairman of EGX, or whoever the Chairman delegates, chairs the Board; the members of the Listing Committee are as follows:
- A representative from the Egyptian Association for Accountants and Auditors to be selected by the Association’s Board of Directors
- EGX Board Member who is representative of the securities companies working in the securities market to be selected by EGX Board of Directors
- EGX Board Member who is representative of the listed companies on EGX to be selected by EGX Board of Directors
- Assistant Chairman for technical affairs at EGX
- Vice president of Disclosure Division at EGX
- General Manager of the Listing Division at EGX
EGX Listing Committee Responsibilities:
- Initial listing for new securities (shares/ corporate bonds/ governmental bonds/ financing notes/ investment fund certificates/ Egyptian depositary receipts)
- Approves extending grace period for executing offering of initial listed companies upon the introduced justifications
- Approves dissemination of disclosure reports for offering or offering prospectus according to Article (7) and (9) of Listing Rules
- Approves listed securities modifications (corporate capital increases/ corporate capital decreases/ stock split/ purpose amendments/ periodic redemption of bonds… etc
- Approves obligatory delisting for listed securities that did not fulfill the continuing obligations conditions
- Approves voluntarily delisting for listed securities according to voluntarily delisting conditions
- Approves Obligatory delisting for bonds, financing notes, investment fund certificates in the maturity date
- Approves the dissemination of disclosure reports for capital amendment procedures or purpose modifications or stock split
- Approves financial penalties according to Listing Rules, executive procedures and listing agreement signed by the legal representative of the company or the entity relating the continuing obligations, corporate governance and protraction of minority share holders
The Egyptian Exchange Membership Committee is formed through a decree from its Board of Directors and chaired by the Chairman of the EGX. Its members include;
Members of The Membership Committee
- Legal Counselor
- At least 3 from the Egyptian Exchange BODs
- Head of the Membership Sector
Members are committed to take into account the competition principals, conflict of interest and confidentiality of information while participating in the Committee and voting for its decisions.
Membership Committee convenes monthly or if necessary with the presence of the majority of its members, and it shall issue its decisions by a majority of votes.
The EGX Membership Sector assists the Committee in performing its functions and it's the executive sector that is responsible for the EGX membership and its procedures.
Violations attributed to the EGX members or its employees are presented to the committee additionally any suggestions regarding amending or implementing the membership rules.
In all cases dealing with the committee shall be through the membership sector.
Objectives of the Committee
- Reviewing the Membership applications and verifying that all conditions and documents referred to in the rules are complete and then take a relevant decision.
- Verifying the Technical and Financial conditions of the EGX Members and then take the relevant decision.
- Examining violations attributed to the EGX members or its employees and take the relevant action as per the Executive Regulations of the Capital Market Law or the Contract between the EGX and its Members.
- Submitting a proposal to the EGX BODs regarding suspending or removing members from the Membership Registry.
- Receiving/Examining the members complains and suggestions and submitting it to the Membership Committee to take the relevant action.
As per the president decision No.(191) for the year 2009 Article No. (11), EGX should provide EFSA with all violations presented to the Membership Committee including the taken actions.