ICEC

EGX finished Financial Instrument Amendments, to Meet EFSA within 2 Weeks

Dr. Mohamed Omran, the Chairman of EGX, has asserted to Amwal Al Ghad that the final notes on the Islamic financing Sukuk draft are finished and have been sent to the EFSA. He added that the EGX is expecting to hold a meeting with the EFSA within the coming two weeks so as to discuss all the final amendments on the mechanism of the Islamic financing Sukuk to start to make it come into effect next March.

Omran added that the EGX is also planning to activate the mechanism of trading in the subscription rights before the first half of the current year on the basis of having various financial mechanisms in the Egyptian market.

Khaled El-Nashar, vice chairman of EGX, has stressed that making notes on the Islamic financial Sukuk memorandum are done.

He said that the final memorandum would be submitted to the minister so as to accept the amendments as soon as the meeting with the EFSA is held

El-Nashar has forecasted that the Sukuk would attract a new category of investors who are willing to invest in the stock market through resorting to Islamic methods; he said it would meet everyone’s requirements.

Sukuk is the Arabic name for financial certificates, but commonly refers to the Islamic equivalent of bonds. Since fixed income, interest bearing bonds are not permissible in Islam, Sukuk securities are structured to comply with the Islamic law and its investment principles, which prohibits the charging, or paying of interest. Financial assets that comply with the Islamic law can be classified in accordance with their tradability and non-tradability in the secondary markets.

Amwal Al Ghad: Islam Salah &  Hussein Sobhy

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