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Title: Circular No. (13) of 2025 Regarding Pledged Investment Portfolios
Date Publish
15 May 2025
“Circular to all entities notating pledge of securities”
Chairman of the Board of Directors
Greeting
Based on the objectives of the Capital Markets Authority (CMA), which stipulate “Enhance investor protection” and “Ensure compliance with the rules and regulations related to securities activities”, and within the framework of implementing the provisions of Law No. 7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and its Executive Bylaws and their amendments.
And in view of the CMA’s monitoring of a negative phenomenon with some licensed persons that practice the activity of Investment Portfolio Manager, who failed to comply with the provisions of Law No. 7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and its Executive Bylaws and their amendments when practicing their activity, through the following:
The Failure of some investment portfolio managers to provide the Exchange and the Clearing Agency with monthly reports on the arrangements of the pledged listed securities, which are part of the components and contents of the investment portfolios of pledged securities of the clients and parties that hold voting rights resulting from the pledge of that amount according to the pledge agreements, which may cause a dilemma on stating the correct number of securities pledged in the trading accounts pooled with the investment portfolio managers.
Therefore, all entities notating pledge of securities and the investment portfolio managers are required to comply with all the regulatory and legal requirements related to the provisions of Article (9-5) and Article (9-6) of Module Eleven (Dealing in Securities) of the Executive Bylaws of Law No. 7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and their amendments, which require providing both the Exchange and the Clearing Agency with monthly reports on the arrangements of pledged listed securities which are from the components and contents of the investment portfolios of pledged securities of the clients and parties that hold voting rights resulting from the pledge of that amount according to their pledge agreements.
We look forward for your commitment to this Circular.
Emad Ahmed Tifouni
Issued on 15/05/2025.
Disclaimer: The information provided on this page is for reference purposes only, visitors are encouraged to review and understand the information provided in the official scanned document attached in the link above (if available). The CMA endeavors to ensure that the information on this page is complete and accurate, but the CMA does not guarantee the quality, accuracy, or completeness of any content at any time. In the event the information on this page is different from the content in the official scanned document attached in the link (if available), the official scanned document attached shall take precedence.
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