Board's Decisions in 5-May-2020

In light of the global development resulting from the repercussions of the emerging Coronavirus that caused by negative effects on the performance of Arab and foreign stock exchanges to extend these effects on ASE performance, and in order to  ease and limit these effects, the Board of Commissioners decided as follows:
 First: Extending the legal period to provide the Commission with annual reports for period ended in 31-12-2019 for public shareholding companies and mutual investment funds until 15/6/2020.
Second: Extending the legal period to provide the Commission with the quarterly reports ending in31/3/2020   for public shareholding companies and mutual investment funds until 7/16/2020.
Third: Amending the Instructions of Margin Finance for the year 2018, based on the provisions of Article (12/R) of Securities Law No. (18) for the year 2017 as follows:
1.  Amending the provisions of Article (6) of the Instructions of   Margin Finance for the year 2018 to become as follows: (The Margin Finance Limit shall not exceed (200%) of the net ownership rights of the Financial Broker.
2. Amending the provisions of Article (7) of the Instructions of Margin Financing for the year 2018 to become as follows:   The total finance of the Financial Broker for one security in his Margin Finance Accounts shall  not exceed (25%) of the net ownership rights of that Financial Broker.
3. Amending the provisions of Article(16) of the  Instructions of Margin Finance to become  as follows: The Financial Broker shall calculate the Maintenance Margin for each account at the end of each business day and shall notify the client on the same day if the Maintenance Margin is less than the allowed minimum limit and the client shall be required to cover the deficit within a period not exceeding three  business days starting from the next day of the date of decrease in the percentage, either by cash deposit or by other securities, provided that such securities are among the allowed to be margin financed  .

4. Amending the provisions of Article (20) of Instructions of Margin Finance for the year 2018 to become as follows: Financial brokerage companies are allowed to purchase for the interest of his clients in the Margin Finance Account of issued securities thereof or issued by Subsidiary or Affiliate or Parent or Sister Companies thereof, provided that the financing percentage shall not exceed 10% of net ownership rights of the financial broker.
Fourth: Reducing the minimum limit for  maintenance margin percentage to (10%) instead of (15%), and reducing the initial margin percentage to (25%) instead of (50%) for the first and second market, provided that these percentages shall review and evaluate periodically, according to market conditions.
Fifth: Emphasizing the financial brokerage companies of the necessity of fully complying with the instructions for separating the funds of broker from funds of his clients at all times and providing the Commission with a register accounts separation report on a daily basis, provided that Commission shall not tolerate violators of these instructions and shall apply the maximum penalties permitted within applicable law and regulations out.  And the above mentioned amendments shall be effective as of the date   OF this decision.