CHAPTER TWO

STOCK EXCHANGES

Article  (15)

	Securities may be listed and traded in a market place called the Stock Exchange.

	No securities shall be listed on more than one stock exchange, with the exception of Cairo and Alexandria Stock Exchanges which are established at the date of enactment of this law where the security shall be listed on both with one listing fee to be divided between the two stock exchanges.

Article  (16)

	Listing of securities on the stock exchange shall be made upon the request of the issuer. Listing and de‑listing of securities on the stock exchange shall be decided upon by the stock exchange, and according to the conditions set by the Board of the Authority. Listing shall be in two types of lists:

A. List (A): for the listing of the following securities:	  

1.	Shares of public subscription companies which meet the following conditions:

a) The nominal shares offered to the public shall not be less than 30% of the total company shares.  

b) The subscribers to the offered shares should not be less than l50   subscribers, even if they are non‑Egyptians.

	In case the trading of company shares results in the reduction of the number of shareholders to less than l00, and for more than three consecutive or separated months during the fiscal year of the company, the shares shall be considered de‑listed by law and transferred to list B of the stock exchange. 

1.	Bonds, financial notes, and other securities offered to the public by joint stock and by limited partnership companies, provided that they fulfill the conditions stated in paragraphs (a) and (b) above.

2.	The securities issued by the Government and offered to the public.

3.	Shares and other securities of the Public Sector Companies, and the Public Business Sector Companies.  

B. List (B): on which the following securities shall be listed:

1.	Shares and the other securities that do not meet with the listing conditions of list (A).

2.	Foreign securities.

Article  (17)

	Securities shall not be traded outside the stock exchange on which they are listed, otherwise trading shall be unlawful.  
	
	Transactions of unlisted securities should be announced in the stock exchange according to the rules specified by the Authority's Board of Directors.
	
	The stock exchange shall provide the Authority with the information and the periodic reports as specified by the Executive Regulations.

Article  (18)

Only licensed companies shall carry out transactions of securities, which are listed on the stock exchange, otherwise trading shall be unlawful. Such companies have to guarantee the transaction. The Executive Regulations shall define the activities that these companies are prohibited to carry out.

Article  (19)

	The stock exchange shall maintain a registry of all securities intermediary companies that operate therein. The fee for such registration shall be Ten Thousand Egyptian Pounds (LE.10000), and an annual membership fee equal to one percent (1%) of the company's capital and shall not exceed Five Thousand Egyptian Pounds (LE.5000).

Article  (20)

	The Executive Regulations shall stipulate the rules and procedures governing the trading operations, clearance and settlement, and the publishing of trading information.

Article  (21)

	The chairman of stock exchange may suspend trading offers and bids aiming at price manipulation.
	He may revoke transactions which violate the laws, its executive regulations and decrees related to their implementation, or which have been carried out with manipulated prices.

	He may also suspend the trading of a given security in case its continuing transactions causes harm to the market or to participants in the market.  

	The Chairman of the Authority may take any of the preceding actions at due time. 

Article  (22)

	In case of emergency, the Chairman of the Authority may decide to assign maximum and minimum levels of trading prices, according to the closing prices of the day preceding his decision. These assigned prices shall be imposed on all stock exchanges.

	The Minister should be informed of such a decision immediately and he may suspend the decision and determine how prices are assigned, and measures to control transactions in the stock exchanges.

	The Minister may, on his accord, decide on the necessary measures to be taken in the forgoing circumstances.
	
Article  (23)

	A special insurance fund, with a judicial entity, shall be established, to insure the securities investors against the non‑commercial risks emanating from the activities of the intermediary companies.

	This fund shall be established pursuant to a decision by the Prime Minister, and upon to a proposal by the Authority's Board to be presented by the Minister.
	The decree establishing the fund shall define the management system of such a fund, its relation to the member companies, contribution of each to its resources, the rules governing the investment and use of these resources, the type of risks to be insured by the fund, and the basis of compensations thereof.

Article  (24)

	Upon a proposal by the Board of the Authority, the Minister shall define the brokerage commission system, and the maximum limits of the stock exchange operations fees.

	He shall also specify the listing fees of securities on the stock exchange, which should not exceed Five Thousand pounds (LE.5000) annually, for the listing of every issue on the list specified by item (A) of Article 16 of this law, and Three Thousand Pounds (LE.3000) annually, for the listing of every issue on the list specified by item (B) of the same Article.

	Listing of the securities issued by the government shall not be subject to these fees. 

Article  (25)

	The existing stock exchanges in Cairo and Alexandria shall continue to operate with their present judicial status, as specified at the date of enactment of this law. The rules governing their administration, and their financial affairs, shall be subject to a Presidential Decree.

	Until such a decree is issued, the prevailing administrative and financial systems being applied in the two stock exchanges at the date indicated in the preceding paragraph shall remain applicable.      

Article  (26)

	Upon the proposal of the Board of the Authority, the Minister may approve the establishment of stock exchanges, having private judicial status, and in which one or more types of securities may be listed and traded. The Executive Regulations shall stipulate the rules governing the organization of such exchanges, and the trading operations therein.