Executive Summary
The Financial Regulatory Authority (FRA) has introduced a new procedural framework for enforcing court judgments, arbitral awards, and other enforceable instruments requiring the sale, purchase, or transfer of ownership of centrally deposited unlisted securities. Issued under FRA Board Resolution No. 99 of 2026 — which amends Resolution No. 94 of 2018 on unlisted securities transactions — the framework adds a new Article (11) establishing a defined mechanism through Misr for Central Clearing, Depository and Registry (MCDR) for implementing such enforceable decisions. The resolution does not create new substantive rights; rather, it closes a practical gap between obtaining an enforceable decision and executing it within the central depository system.
Key Highlights
- New Enforcement Mechanism: FRA Board Resolution No. 99 of 2026 introduces a new Article (11) to Resolution No. 94 of 2018, establishing a dedicated procedure for enforcing judgments, arbitral awards, and other enforceable instruments relating to unlisted securities.
- Submission to MCDR: The interested party must submit the enforceable judgment or instrument to MCDR together with supporting documentation, including proof of due service on the judgment debtor and any required regulatory approvals.
- MCDR–EGX Coordination: Once documentation is verified, MCDR notifies the Egyptian Exchange (EGX) and proceeds with the ownership transfer and associated financial settlement.
- Procedural, Not Substantive: The framework implements rights already established by final judicial or arbitral decisions rather than creating new investor or shareholder rights.
- Strengthens Arbitration Effectiveness: By providing a clear implementation path for awards requiring transfer of unlisted securities, the resolution enhances the practical enforceability of arbitral awards in corporate and investment disputes.
- Pending Operational Detail: Practical impact will depend on implementation procedures still to be prepared by MCDR and approved by the FRA.
Areas / Sectors Affected
- Capital Markets & Financial Regulation
- Shareholder & Corporate Disputes
- Private Share Transfers
- Mergers & Acquisitions
- Arbitration & Dispute Resolution
- Inheritance-Related Ownership Transfers
Publication Information
Publisher : Saqaan & Partners – Advocates & Legal Consultants
Publication : Legal updates
Jurisdiction : Egypt
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