Frequently Asked Questions (FAQs)
The Frequently Asked Questions (FAQs) sent by visitors about MCSD and related aspects are explained under the main following categories:

What is the meaning of Central Depository?

Depository is an organization where the securities are held in the electronic form at the request of the shareholder through the medium Of a participant.

What are the reasons of failure in Clearing and Settlement transactions?

1. Failure to deliver securities related to the selling side.
2. Failure to transfer funds related to the buying side.
3. Wrong recording of the selling or buying client by the broker On the Stock Exchange.

What is the wrong recording of the client?

The client’s name executed in the securities transactions doesn’t match The client’s name with the Custodians.

What is the procedure followed by the brokerage firm in case of wrong recording?

1. Identity Card of the client
2. Statement of account
3. A copy of the executed print
4. Acknowledgment of the company

All of the mentioned documents should be approved

what is the procedure followed by MCSD in case of wrong recording?

Execute correction transaction after fulfillment of the required documents.

why do we need the Central Depository?

There are a number of advantages that the Central Depository System brings with it. The main reasons for the Central Depository System are:

1. The Egyptian stock market in the last few years has registered exceptional growth. Trading volumes have increased manifold and are likely to increase with the passage of time and the physical handling of certificates will become more cumbersome and time consuming. Without automation and immobilization of certificates, the Delivery and Settlement of securities would become unmanageable, not to mention highly risky.
2. The current Delivery, Settlement and transfer procedures have traditionally been plagued by lengthy delays, risks of damage, loss, forgeries,.. Etc and considerable investment in time and capital.