Dr. Ahmed Saad Abdel Latif, Chairman of the Capital Market Authority held a press conference on Thursday to present the most important developments in the Egyptian capital market at the current stage as well as the CMA’s performance in 2008. In addition to this, the Chairman presented the CMA’s work plans and programs for 2009; this is within the framework of a five-year strategic plan (2008 – 2012) set by the CMA to develop the capital market in Egypt.

He pointed out that the work plans and programs of 2008 were built on four main axes:

The first Axis : regulating and developing the Capital Market , in which he outlined the measures taken by the CMA to cope with the effects of the Global Financial Crisis. These measures include reducing the effects of the crisis on the Egyptian Stock Market without resorting to emergency or special measures - that may be unacceptable to the investors in the Stock Market, especially foreign investors. These emergency measures may include: stopping trading or setting restrictions on it, which will lead many of them to liquefy their investment and exit from the Egyptian market which will negatively affect the Stock Exchange Trading Indicators. Among the measures taken by the CMA were the following:

• Regulating trading on the Treasury Shares.

• The CMA using its estimated power to increase the ownership of Holding Companies in its affiliates, in a way that does not affect the rights of minorities.

• Allowing some strategic investors to increase their ownership in their companies, without obliging them to submit mandatory bids. This is in a way that does not affect the rights of minorities or small investors.

• Preventing the registration of the orders in which the decline is exceeding 20% and thus ensure the continuation of trading all over the session.

• Tightening supervision on foreign and Arab investors.

• Tightening supervision on the daily transactions, which are suspected of fraud or manipulation, or transactions that aim at directing the market to list unreal prices so as to make a profit at the expense of other investors. In addition to this, the CMA initiates criminal proceedings against those who are found to be involved in such actions, whether they are institutions or individuals.

• Regarding investor’s awareness: The CMA prepared and released many publications which are available on its website. The publications include issues that are related to some mechanisms e.g. ESOPs, and Treasury Shares and Bonus Shares and Retail Stocks and the implications of the Global Crisis.

The first axis also included : the amendments to the Capital Market Law which will help in developing the market , adding new regulatory measures and financial penalties appropriate to the size of the violations committed , preparing a proposal on contracts’ exchanges , as well as preparing a draft on the regulations set for issuing and trading on short and long term Sukuk . This is besides activating the regulatory framework for issuing ETF’s, in addition to strengthening transparency and disclosure and fair treatment of investors. The first Axis also included the issuance of the Egyptian Auditing Standards and the amendments to Listing and Delisting Rules this is in the light of the legislative amendments to the Capital Market Law and to promote and attract economic entities to trade in the Stock Market . Auditors’ Oversight Board was established at the CMA , the rules and regulations of the investor’s protection fund was developed , as well as developing the rules governing Intra Day Trading ,and finally the approval on activating the international principle of Freedom of Information.

The second axis : Supporting and developing Securities Companies . So in this respect, the CMA started rehabilitation system and licensing the staff working at these companies .This is in addition to the establishment of the Electronic Tests Center in accordance with international best practices as well as the establishment of branches’ register, and supporting the Securities Companies regarding applying the Capital Adequacy Standards.

The third axis: ensuring the institutional development and updating the CMA’s internal working systems. It included the preparation of an integrated study of the regulatory role on the Capital Markets in light of working under the auspices of the Financial Supervision Authority of the non-bank financial institutions. Besides supporting the CMA’s regulatory role in shifting to a risk based supervision .It also included the development of the CMA’s organizational structure, and the simplification of the work flow charts , procedures and mechanization ,as well as the development of information technology in the Egyptian Capital Market.

He also pointed to the efforts exerted in the fourth axis: developing the investment’s awareness. This included the launch of the beta version of a website dedicated to investors’ education www.iinvest.org.eg , and continuing the development of the CMA’s official website www.cma.gov.eg as a mean in which people access all the regulations issued by the CMA. This is in addition to the development of the Call Center, as the CMA started the mechanization of the work at the Call Center in order to ensure the standardization of data and information obtained through contacting the Center. This is besides publishing manuals and guide books.

Dr. Ahmed Saad presented the most significant characteristics of the work programs for 2009 in the framework of the strategic plan and programs of the CMA , this included : more legislative amendments aiming at developing the capital market , adding new regulatory measures to support the CMA's role in supervising the market, issuing the Executive Regulation that regulates issuing and trading on Sukuk , activating and organizing the work of the Auditors’ Oversight Board , regulating trading on the affiliates’ shares , as well as regulating dissemination of information, assessment and analysis of securities, developing rules of mergers and acquisitions, organizing disclosure and free circulation of data and information, starting the work at the Capital Market’s Tests Center , granting approvals and licenses to staff working at Securities Companies , issuing the Capital Adequacy Standards for companies managing investment portfolios, and completing the necessary studies for organizing the regulatory framework and the service of the CMA in preparation for integration under the control of non-bank financial institutions into one regulator , launching the CMA’s E-services , developing the crisis management system , and establishing branches of the CMA in several areas of the Republic.

He also pointed to the programs set by the CMA in the area of investors’ education and raising investment awareness. This included releasing the final version and the continuous development of the website www.iinvest.org.eg "corner of the Egyptian investors’ awareness" to become an integrated website for investor’s education and awareness, the website provides the investors with all the necessary information and data regarding transactions. The CMA advises all concerned parties in the market to visit the site to find out the free services offered to the investors through the main sections such as: Educational Corner and Data on the Listed Securities and News published on the Stock Exchange Screens, Rights of Investors, Data and Information about Investment Tools at the Stock Exchange, besides the Important Warnings and information on of brokerage companies and its branches. He also pointed to the continuous development of the official website www.cma.gov.eg , as through the website investors can identify all the regulatory procedures issued by the CMA .

Dr. Ahmed Saad added that within the past period, there were 75 cases that included the potential crimes of the Capital Market, he initiated the criminal proceedings against 50 cases that included violations committed by the Securities Companies and individuals. While he did not initiated the criminal proceedings against the other 25 cases due to either the lack of evidence or they were not up to the level of criminal offences. He also stressed the role of the CMA in protecting investors, and the development of rules governing the market , maintaining its integrity and reducing risks , he also asserted the importance of applying the principles of justice and transparency without resorting to unjustified extraordinary measures which will have a negative impact on the market in the long term.