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 About CMA |
| The Capital Market Authority is the government agency responsible for regulating Egypt's securities markets. The Authority's primary mandates are to protect investors and to encourage the development of efficient, orderly, and well-regulated primary and secondary markets for securities. | ||||||||||||||||||||||||||||
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CMA Mandates
• Enforces the Capital Market Law (95/1992), its Executive Regulations, and related decisions, the Depository and Central Registry Law (93/2000) and its Executive Regulations and listing and delisiting rules at CASE.
• Authorizes prospectuses of new securities issues. • Reviews information memoranda of securities private placements. • Granting license for securities companies. • Protects rights of minority shareholders. • Applies disclosure requirements in accordance with Egyptian Accounting Standards based on International Accounting Standards. • Conducts market surveillance to ensure transparent and fair trading in securities and to deter fraud, including reviewing disclosures from listed companies, monitoring securities trading, and inspecting brokers and other intermediaries. • Facilitates the growth and development of Egypt's capital market, including improving the skills of capital market officials, encouraging the introduction of new financial instruments, facilitating the implementation of state-of-the-art technology, and increasing investor awareness. |
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CMA's Major Goals
• Protecting investors from non-commercial risks. • Organizing and developing capital markets and keeping its integrity. • Applying fairness and transparency principles. |
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CMA Development
Formed in the late-nineteenth and early twentieth centuries, Egypt's stock exchanges are among the oldest in the world. They were also among the most active until the 1960s, when the nationalization program caused trading in stocks and bonds to lie dormant. The exchanges reemerged with the economic restructuring program of the last decade of the twentieth century. While it was founded in 1979 by Presidential Decree Number 520, the Capital Market Authority did not take on its full importance until the 1990s. During that period, its main role was to facilitate the reemergence of Egypt's capital markets by providing leadership to market institutions, educating potential investors, and strengthening the legal, regulatory, and operational infrastructure. At the same time, Egypt's economic restructuring program, in particular privatization of state-owned companies, accelerated the growth of the market. As a result of these efforts, market capitalization grew exponentially, from L.E. 5 billion in 1990 to L.E. 602 billion in 30/6/2007. |
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Future Plans
The Capital Market Authority continues to lead the development of a more robust infrastructure, reducing risks to investors and increasing their confidence in Egypt's securities markets. Priorities of the CMA in the coming period can be divided into three programs: 1. Capacity Building Program: to boost efficiency of CMA surveillance performance and the regulatory framework. 2. Intermediaries Support Program. 3. Capital Market Infrastructure Development Program. |
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The Achievements
Major Landmarks in the Reemergence of Egypt's Capital Market |
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Strategic Objectives
CMA Five-Year Plan 2004-2008 |
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CMA Vision:
The Capital Market Authority (CMA) is seeking to develop Egyptian capital markets to be more efficient and competitive for attracting and directing both local and foreign savings for investment in Egypt. This approach is achieved through the application of international standards and practices in leading and emerging capital markets, and so that the Egyptian capital market becomes a pioneer on the regional level among the Middle East and the Arab countries. The CMA also endeavours to enhance its performance and boost its ability and efficiency according to the highest international practices through developing legislations, rules and systems of the CMA’s internal work. Effectiveness and the efficiency in the performance of its regulatory role are thus realized in order to facilitate and encourage investors and dealers in the stock markets to execute their transactions safely, efficiently and with lower costs. |
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CMA Strategic Mission
The strategic mission of the Capital Market Authority is the protection of the investors, the development of the capital market, the preservation of its fairness, the limitation of market risks and application of principles of justice and transparency. |
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Values
Being so keen to achieve its missions and strategies, the CMA and its staff are committed to the following values and principles: -Integrity: The CMA employees are committed to principles and ethics that help to acquire and maintain confidence of dealers in CMA services. -Fairness: The CMA role includes surveillance on the capital market and enforcement of its regulating legislations and rules. The CMA maintains fair treatment of all market participants in regards to the application of legislations and rules with due respect, seriousness and care. -Accountability: The CMA employees value the responsibility placed on their shoulders for the verification of the CMA mission and goals as they deem themselves responsible for achieving these objectives before the investing public. -Resourcefulness & Efficiency: The CMA employees are committed to the intensification of their efforts for defining and evaluating of risks that the capital market, the investing public and other market participants may be exposed to. Therefore, CMA employees strive to seek means and up-to-date methods for achieving CMA mission to protect investors, develop the capital market and realize its targets by the highest possible degree of efficiency. -Teamwork: The CMA is fully aware that its success in the performance of its tasks as a regulatory organization of the Egyptian capital market requires cooperative staff that are dedicated to the performance of CMA tasks with the highest levels of confidence, hard work, cooperation and communication. CMA staff is committed to these principles and exert highest effort for raising the performance efficiency as an integrated team and not at the level of administrations or separate divisions. Effective coordination is also taking place with related business associations, institutions and governmental organizations inside and outside Egypt. -Commitment to Excellence: The CMA requires from its staff to be committed to the highest standards of fairness, seriousness, efficient performance and loyalty in work, which is the least to be offered to the public in the Egyptian capital market. -Transparency: The CMA adheres to a distinguished style in dealing with market participants, based on transparency of all legal disclosure requirements as one of their rights in order to gain their confidence and cooperation. And the CMA expects the same level of transparency from those parties. |
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Strategic Goals
1. On-Going Development of Regulatory Programs. 2. Organizing & Providing Medium and Long Terms Financial Instruments 3. Encourage and Strengthen Programs to Develop Investor's Awareness 4. Ongoing Development of the CMA's Internal Work Systems so as to cope with Market Developments: 5. Effective and Ongoing Development of the Capital Market Infrastructure. |
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Strategic Objectives
These strategic goals covers the period from 2004-2008 and will be carried out consecutively, in accordance with the plans and Work programs formulated by the annually CMA. 1. On-Going Development of Regulatory Programs: 1. Developing legislations and legal regulations for the capital market in connection with other economic legislations for the purpose of increasing the efficiency of regulatory programs at CMA. 2. Developing the programs of investigation and inspection on market intermediaries. 3. Developing the surveillance program. 4. Developing the program of surveillance for the Securities Market issues. 5. Developing the procedures of surveillance of disclosure of related companies intermediaries. 6. Developing regulations and new procedures for inspection of SRO's. 2. Organizing & Providing Medium and Long Terms Financial Instruments: 1. Evaluating international debt markets in order to develop an organized market for debt in Egypt. 2. Organizing securitization activities and having its included among the activities of companies dealing in financial securities. 3. Establishing a unit at CMA for licensing and monitoring debt issues. 4. Encouraging the activity of developing and publishing indices related to debt instruments. 3. Encourage and Strengthen Programs to Develop Investor's Awareness: 1. Designing national program for developing investor awareness in cooperation with other stakeholders and SRO's. 2. Developing specialized training programs for journalists, media community and judges in cooperation with SRO's. 3. Participating in preparing circulars and specialized publications for investors, issuers and financial entities in cooperation with SRO's. 4. Conducting workshops or seminars 3 times annually, covering issues of interest to members of the financial community (investors relations, corporate governance, securitization, margin trading and bond issuance). 4. Ongoing Development of the CMA's Internal Work Systems so as to cope with Market Developments: 1. Developing the organization and administrative structure of the CMA. 2. The Continuity of implementing the plan of automating activities and data base at the CMA. 3. Preparing and issuing internal work manuals for staff of the CMA and guides for others dealing with the CMA. 4. Securing and furnishing an independent building for the CMA. 5. Developing a training needs assessment for CMA staff and conducting local and international training. 6. Finalizing the preparation of a special study conducted on establishing an Egyptian financial center in cooperation with the Ministry of Investment. 5. Effective and Ongoing Development of the Capital Market Infrastructure. 1. Coordinating with the Ministry of Investment to establish a Directors Center to train the Directors of companies on the principles of corporate governance. 2. Developing principles and procedures for organizing the Over-The-Counter market. 3. Studying derivatives that could be introduced to the Egyptian Market and which would meet the needs of foreign investors. 4. Conducting a study to identify necessary developments required to introduce derivatives to the Egyptian Market (licenses - trading - clearing and settlement - legislations). Other objectives to be added based on the results of the study. |
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