THE CAPITAL MARKET LAW
NO. 95 FOR 1992
AND ITS
EXECUTIVE REGULATIONS
Second Edition: May 1998

PREFACE

	This law, and its executive regulations, have been prepared and enacted for the purpose of developing the capital market, fairness to and protection of investors, the integrity of markets, and the encouragement of investment. The primary objective is investor protection.

	The corporate sector and the securities market in Egypt, are governed by a legal framework and its respective regulatory provisions comprising the Company Law (159/1981), the Investment Law (230/1989), the Public Business Sector Law (203/1991), and the Capital Market Law (95/1992), as well as certain sections of the Banking Law (73/1992), the Insurance Law (10/1981).

	All corporations established in Egypt are subject to the provisions of the Company Law (Law 159/1981).  The Company Law further governs Limited Liability Companies and Partnership Limited by Shares.  However, certain provisions of the Company Law shall not apply to Public Sector Companies governed by Law 97/1983, as amended, the Public Business Sector Companies governed by Law 203/1991, nor to enterprises established under the provisions of the Investment Law (Law 230/1989).  

	The Company Law is no longer concerned with companies that issue securities whether publicly held or closed corporation.  
The Investment Law 230/1989 governs the provisions applicable to investment projects in various economic sectors. It establishes guarantees, privileges, and tax exemptions, provides for the establishment of free zones and investment therein, and regulates related activities. It exempts projects established under the Law from certain provisions of the Company Law. 
	
	With the enactment of capital market law, comprehensive legal and regulatory framework should now enhance the efforts aiming at the definition and implementation of policy issues for a sustained development of an active, efficient, and transparent securities market. The law provides the Capital Market Authority (CMA), the legal authority and status necessary for the attainment of the objectives of insuring the effective execution and enforcement of securities market legislation and regulation. It provides also specific authority to regulate, monitor, execute, and enforce particular issues.  The stated objectives of the CMA call for it to aim at organizing and developing the capital market, to supervise the efficient performance of its functions, and to channel capital resources required for economic development.
	
	The securities market law requires full disclosure of information to investors, either by way of prospectus for offer and sell of securities, continuous disclosure of financial statements and reports audited according to international standards of accounting and auditing, proxy statements, and immediate disclosure of material information, favorable or adverse. The further provides for the establishment of securities financial intermediaries including mutual funds, to be organized by nationals and non-nationals on equal footing. 

	Barriers on market accessibility have been removed either for companies engaged in securities intermediation, or for individuals buying and selling securities for their own accounts. Foreign securities can be listed and traded on the stock exchanges, once they meet the listing requirements of such exchanges. 
In this connection, no limitations on corporate securities ownerships by non-nationals accept such limitations that may be defined by the company statute.
	
	The following text is a translation of the provisions of the Law and its executive regulations. It is understood that in the event of discrepancy between the English and Arabic text, the Arabic version of the law and the respective executive regulations shall prevail.

							Dr. M. H. Fag El-NOUR 
								Chairman  

July 1994.