The Financial Regulatory Authority (FRA) has reduced the fees for examination and study services for small- and medium-sized enterprises (SMEs) by 50%, according to FRA Chairperson Mohamed Omran.
The discount will be applied in a range of circumstances when SMEs apply to obtain the FRA’s approval for public offering prospectuses. It is to be applied during incorporation or capital increase, and when shares are issued for a merger, split, or in case of issuing shares in excess of profits or reserves.
It also applies in cases of credit balances to shareholders or in kind shares or modification of the nominal value of the share, and when it submits to the issuance of bonds or sukuk in cases of public or private subscription. SMEs will also be able to access the discount upon approval of an invitation to old shareholders to increase capital and circulate the right of subscription and upon purchase offers or exclusion from them or against offering securities on the Egyptian Exchange (EGX).
Omran said the initiative follows the FRA’s adoption of a policy diversifying sources of financing for various economic sectors. The policy is also set to increase the number of SMEs set-up, and to stimulate their EGX flotation as a financing tool to help them achieve growth and expansion.
The authority’s decision to reduce the fees also falls in line with the Egyptian government’s efforts as part of the country’s Vision 2030. It is expected to provide support to SMEs, whilst enhancing their role in the national economy and increasing their competitiveness.
Meanwhile, Omran highlighted the practical reality of holding general assemblies as a necessary method of verifying that shareholders of listed companies have frozen their shares with Misr for Central Clearing, Depository and Registry (MCDR).
He said that the FRA has decided to amend the rules for listing and delisting securities on the stock exchange according to the executive decision of Law No 160 for the year 2020.
The amendment will see a second paragraph added to Article 41, in which the company is obliged seek a statement from the MCDR and the Central Bank of Egypt (CBE) 24 hours prior to the General Assembly meeting’s date.
The statement should include a list of the shareholders who have frozen their shares for the purpose of attending the General Assembly. The company is also obliged to hand over the statement to the company’s auditor present at the General Assembly to verify the validity of the lists submitted by the shareholders attending the meeting.