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Global Depository Receipts (GDRs)
GDRs Rules
The basic concept of GDRs:
Global Depository Receipts (GDRs) system enhances significant increase in foreign indirect investment in the Egyptian securities. The main idea of this system is based on offering local securities to be traded on international markets through the listing and trading GDRs on international stock exchanges, (domestic securities are held in the name of international depository banks "international intermediaries" in Egypt as a cover for GDRs).
Advantages of Issuing GDRs:
• For the company issuing the security: Strengthening the activities of local companies in the international financial markets and enhancing their presence, in addition to improving the evaluation of the local stock. Issuing GDRs will also widen the ownership base (internal and external markets), and enable trading for a larger number of investors, which in turn will ensure liquidity for the security.
•For investors outside Egypt: Easy investment in different financial markets, easily converting GDRs to local shares through the depository bank, benefiting from the differences in prices (arbitrage), and allowing diversification of investment and helping in reducing the systemic risk through the formation of diversified regional or internationally portfolios.
• For the national economy: penetrating new markets to provide new sources of finance accordingly increasing foreign indirect investment in Egyptian securities.
- For Depository Receipts Procedures at EGX (in Arabic), please click here 
- Decree No. (191) for the Year 2017 Regarding the Amendment of Rules & Operational Procedures of Global Depository Receipts (in Arabic), please click here
- Decree No. (177) for the Year 2016 Regarding the Amendment of Rules & Operational Procedures of Global Depository Receipts (in Arabic), please click here
- Decree No. (131) for the Year 2015 Regarding the Amendment of Rules & Operational Procedures of Global Depository Receipts (in Arabic), please click here
For more information about Egyptian GDRs traded on International markets, please click here
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