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Over -The- Counter (OTC) Mechanism:

Trading and transfer of ownership of unlisted securities through the OTC mechanism should be announced as per the rules issued by EFSA Board of Directors and its Executive Regulations issued by EGX Board of Directors and approved by EFSA, in accordance with Article (17) of the Capital Market Law No. 95 of the year 1992 and Articles no. (99) & (100) of its Executive Regulations.

The OTC mechanism is divided into two main tiers:

A. The Orders Mechanism:

This mechanism allows trading on the securities of the de-listed companies for a short period of time to provide a temporary solution and an exit strategy for existing shareholders. According to this mechanism, companies do not conform to EGX disclosure and corporate governance rules. This mechanism is characterized by high investment risk as it is not considered an investment mechanism. In addition, there’s no closing price for securities traded through this mechanism at the end of each session. Moreover, trading through this mechanism takes place twice a week for a specified period of time.
 
EGX shall suspend trading on any company using this mechanism if the company amends its registered issuance data, unless the amendments made will help the company put its house in order and meet the listing requirements to relist again, provided that the Chairman approves these amendments. 

B. Transfer of Ownership Mechanism (previously known as Deals Mechanism):

This is the mechanism through which the pre-arranged deals are executed. EGX should announce all information related to these deals after their execution. Brokerage firms should notify the OTC department as follows:

For Transactions Less Than LE 20 Million:

1. Through the automated linking system: For transactions executed on centrally deposited unlisted securities, brokerage firms–from its premises- shall enter the data of these transactions on the ownership transfer program tailored for such deals.

2. The brokerage firms shall announce transaction executed on materialized unlisted securities through submitting a form to the OTC department at EGX.

For Transactions Exceeding LE 20 Million:

Brokerage firms shall submit transaction execution request to the Market Operations department at EGX, attached with copies of supporting documents, to get the approval of the Operations Committee.

Rules, Regulations, Documents and Forms:

  • EGX Board of Directors Decision No. (39) for the Year 2017 Regarding the Executive Procedures of Trading & Transfer of Ownership for the Unlisted Securities (in Arabic) Download PDF 
  • Guidance Forms  (in Arabic) Download PDF 
  • EFSA Board of Directors Decision No. (17) dated 8/2/2017 Regarding Trading & Transfer of Ownership Rules for the Unlisted Securities (in Arabic) Download PDF 
  • EGX Chairman Decision No. (12) for the Year 2017 Regarding the Executive Procedures of Trading Rights Issues of the Securities of the Unlisted Public Offering Companies  (in Arabic) Download PDF 
  • EFSA Decision No. (137) for the Year 2015 Regarding the Rights’ Issues Trading  (in Arabic) Download PDF   
  • EFSA Decision No. (27) for the Year 2015 Regarding Inspection & Examination Fees For Transfer Of Ownership Requests (in Arabic) Download PDF                 
 
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