• Search


How can I purchase and sell securities at the stock exchange?
Sale and purchase of securities are made through a securities intermediary. The client can not personally carry out the securities purchase process. However, this process is made by a securities intermediary at the stock exchange, according to sale or purchase orders to be issued by the client. In this respect, the clearing company deducts the financial value of the transactions, in question, from the account of the purchasing intermediary and adds this value to the account of the selling intermediary.
How the delivery versus payment DVP process is made? And what are the DVP advantages?
Delivery process is made by and between the selling intermediary and the purchasing company against certain payment. MCDR withdraws the monetary value of the purchase transaction made in the stock exchange from the settlement account of the purchasing company in the clearing bank. At the same time, MCDR withdraws the purchased quantity of securities from the selling intermediary and add same to the account of the purchaser. The DVP's advantages is summarized in the fact that the processes of receiving both the purchaser's and the seller's rights are guaranteed to be properly effected at the same time.
Is the final deposit of securities made at the custodian?
Final deposit of securities is made at Misr for Central Clearing, Depository and Registry, not at the custodian.
Who are the shareholders of Misr for Central Clearing, Depository and Registry?
The shareholders of the company are the central registry members and the stock exchange. In this respect, the shareholding of any member or any joined group of members does not exceed 5% of the company’s capital, pursuant to Article (37) of Central Depository and Registry Law No. 93/2000.
Could the securities deposited in Misr for Clearing be pledged?
The securities owner is entitled to pledge the securities, by virtue of a pledge contract to be concluded with the shares pledge, provided that this contract shall determine the rights and obligations of both parties and that the pledge shall be recorded in the registries of MCDR.
What are the various means for dividends payment?
• Cash payment, through MCDR’s cash outlets, which are spread all over the country. • Transfers to/from the current account of the client. • Issuance of cheques, through the Company’s branches in Cairo and Alexandria. • Delivery to the client's premises, through the Company’s branches in Cairo and Alexandria in cooperation with Citibank.
I have balances under unified code in a tripartite name, but when I obtained my National I/D, it was in a quadripartite name. What should I do?
The client should go to his/her intermediary and provides a copy of the document (personal-family I/D or passport) in which the code in his tripartite name is inscribed as well as the original copy of the National I/D, for re-issuance of another unified code for the balances.
When I obtained a statement of account for my balances and reviewed same with the competent employee, I found that the intermediary carried out a purchase process using an old code. What should I do?
You should go to the custodian to have your balances registered under the correct code and to submit the documents proving your ownership of these balances, such as securities purchase invoices and the I/D used for creation of the code.
I have a quantity of securities, but when I went to receive their profits, I found that the profits were paid for a quantity of securities less than that I have.
Profit payment is made to the security bearer on certain date. In this respect, the client may have made the following: • Purchase could be made after the maturity date. • Sale could be made after the maturity date. In this case, the client may go to the MCDR Customer Service Department to obtain a print out of the statement of account, regarding the security in question, on the dividends' maturity date, to be aware of his actual balance upon payment of dividends.
I own securities issued by an issuer and desire to attend the issuer's ordinary general meeting. How and when should I freeze these shares?
Securities balance should be frozen at least three days before the date of attending the ordinary general meeting. In this respect, the client shall submit an application for freezing shares to his/her custodian, if the balance is placed at the MCDR. (The balances managed by the Misr for Clearing for former bookkeepers, whose license was canceled by the Capital Market Authority are: a- Orbit Stock b- The Egyptian Gulf Company c- The Market Group d- Link e- Premiere f- Stars g- The European Group) h- Safwa In this respect, the client goes to the Customer Service Department to have his/her to freeze his balance for the purpose of attending the general assembly.
I would like to waive my shares to my son. What are the procedures required to be applied?
Waiver is not permitted, as the balance is only related to the original client. However, the father could sell shares to his son by virtue of an executive transaction to be made at the stock exchange through the intermediary (protected transaction).
Who is the person who is legally entitled to access any information related to the client's securities portfolio?
1- The client himself. 2- An attorney, by virtue of a general or private power of attorney permitting the latter to review the balance. 3- An heir, by virtue of an inheritance declaration related to the legator. 4- The natural guardian or the trustee with respect to minors and the curator with respect to the person subject to interdiction. 5- The person authorized to sign on behalf of corporate bodies (companies, corporations, societies...etc).
Is it required to resort to an intermediary to manage securities?
Intermediaries do not manage the client's securities accounts but the custodian is the entity responsible for this process, including the deduction and addition transactions made according to the sale and purchase orders issued by the client himself to the intermediary. With respect to the portfolio management, client should resort to the portfolio management company. It is meant by custodians; the financial institutions which obtain a CMA license to open and manage current accounts for securities.
What are the procedures required to open an account, through custodians, under the central depository and registry system?
The client elects a custodian, and signs a contract with it to determine the rights and obligations of each party towards the other. The elected custodian opens a securities account in favor of the client, receives the securities desired by the client to be deposited in the central depository system, reviews the securities received and complete the procedures for central depository. After approving the securities and adding same by MCDR to the custodian's account, the custodian- in turn- adds the securities to the client's account.
Who are the central depository members?
• CBE-registered Banks and their branches. • Companies operating in the field of securities. • Companies and foreign entities practicing the activity of central depository of securities. • The other entities approved by the Company's board to be enrolled as members, pursuant to the terms and conditions stated in the Executive Regulations of Central Depository and Registry Law No93/2000.
What does the joined group mean?
Means each Central Depository group of members who are all subject to the actual control of the same natural or judicial persons or who agree to coordinate among themselves to jointly vote in the general ordinary or board meetings of the Company. It is conditional that the shareholding of any member or joined group of members shall not exceed 5% of the Company's capital.
What are the entitlements arising out of securities?
It meant by the entitlements arising out of ownership of deposited securities, the centrally paid dividends, revenues, redemption values, restructuring proceeds and any other rights arising out of the shareholder's ownership of securities, such as the right of underwriting which is granted to previous shareholders, the bonus shares payments and the rights resulting from merger...etc.
What are the required documents for me to be able to receive my dividends payments regarding certain security?
In case of receiving payments by the client himself/herself or for his minors, it is required to submit the following documents: • The client’s I/D which is identical to the latter’s unified code. • The original birth certificates of the minors (For the first time payment only) In case the client authorizes another person to receive dividends payments, the following documents are required: • The original copy of the (general or private) power of attorney, which shall provide for receiving the securities dividends payment. • The authorized person’s I/D.
What is the period of time available for the client to receive his/her dividends payments?
Client may receive dividends within five years from the date scheduled by the authority assigned to pay dividends. The client’s right for payment then elapses by prescription, according to Article 375 of the Civil Law.
What are the problems that could face the client at the time of payment?
• The client’s failure to submit complete documents. • If some client’s unified code data is missing. • The custodian’s receipt of the dividends in favor of the client, without the latter’s knowledge.
I purchased securities for the first time and when I obtained a statement of account, I found no balance, how come?
The intermediary's purchase of securities without contracting with a custodian results in non-availability of the balance in the account of the client. It is required that the client moves to and contracts with a custodian, then sends purchase orders to the latter (through the purchasing intermediary) to allocate purchased securities.
When I received dividends payments for my securities, I found that my available balance is less than the actual quantity I own, what should I do?
You may go to the Customer Service Department to know the problem, which may possibly be one of the following: • The issuer' reduction of the capital. • Covering by the settlements guarantee fund of the purchase transaction, due to the insufficient cash balance of the purchasing intermediary. • A securities accounts employee will calculate the reduction rate multiplied by the balance, and review same with the client to confirm the current balance. • Reverting to the intermediary to carry out a new purchase transaction, in case the client requires this quantity, or redemption of the purchase value of transaction. • Obtaining a turnover statement from the legal department for reviewing the sale transaction
When I obtained a statement of account regarding my balances and submitted by National I/D, I was requested by the competent employee to provide a copy of my previous I/D and to update my data, why?
No statement of account, regarding the balances of any client, is given unless the client's data at the stock exchange is identical to the latter's I/D. In this case, the client should bring his/her I/D, a copy thereof, a copy of his /her marriage instrument or a copy of the military service certificate. By these documents, a statement of account regarding the client's balances is issued to the client, who shall then be advised to update his/her data according to his/her I/D.
I have balances which have not been transferred to a custodian, and I want to do so, how?
The following procedures should be taken: First: To complete a transfer order form regarding the portfolio at the MCDR Customer Service Department located in 70, El Gomhorieya St., so as to have the balances transferred, provided that a contract shall first be concluded with a custodian. Second: The custodian may undertake this procedure by virtue of a letter to MCDR, provided that the custody fees, if any, shall be paid.
One of my relatives passed away, and I am entitled to a part of his/her legacy which contain securities, what should I do?
In case the father or the spouse dies and if the legacy contains securities, the following procedures shall be undertaken: First One of the heirs should move to the MCDR Customer Service Department to provide the following documents: • The deceased's original I/D or a copy thereof. • The original death certificate. • The original inheritance declaration. • The heirs' original I/Ds or copies thereof. • The original power of attorney, in case the heirs authorized one of the descendants (sons). Second: To enquire, by virtue of the deceased's I/D, about any balances. Third: A print out of the deceased's balances, if any, is made. Fourth: The client shall be advised to go to the Legal Department at the seventh floor, for distribution of the legacy. Fifth: In case any securities balances are entitled to dividends payments, these payments shall be made to every heir immediately after distribution of the legacy, according to the Law/Sharia and as per each heir's share in the legacy.
How can a legacy comprising of shares and bonds be distributed and what are the documents required?
The legacy of shares and bonds, which are centrally deposited through MCDR - The Legal Department, is distributed as follows: First: The centrally deposited securities legacy: The following documents, together with a legacy distribution application, shall be submitted by one of the heirs or his/her legal representative: • The inheritance declaration (legacy distribution decree) • An updated statement of account regarding the legacy, to be prepared by the custodian. • The unified codes of heirs. • Copies of the I/Ds of the heirs, the legator, the birth certificates of minors, the powers of attorney and the guardianship decree. Second: The non- centrally deposited securities legacies: The following documents, together with a legacy distribution application, shall be submitted by one of the heirs or his/her legal representative: • The inheritance declaration (legacy distribution decree) • The original securities instruments • Copies of the I/Ds of heirs and the birth certificate of minors. • The Powers of attorney • The guardianship decree Note: Copies of these documents as well as the said application are submitted together with their originals for the purpose of verification.
How should I obtain a replacement for any lost shares or bonds?
The client shall submit an application describing the data available to MCDR regarding the lost shares. This application shall be submitted after fulfillment of the following procedures: • Drawing a police minutes at the competent police station regarding the lost shares, their classes and data. • The Company shall then enquire about the lost shares and provide the client with a letter describing the result of enquiry, for submission to the issuer to complete the procedures for issuance of a replacement for the lost shares.
As a result of the process of transferring balances to custodians, my balances were transferred to more than one custodian. I need to have all my balances collected at only one custodian, how?
In order to have your balances collected at one custodian, the following procedures shall be undertaken: First: A contract shall be concluded with the custodian to whom the balances are desired to be transferred. Second: The client shall issue a transfer order to the transferee custodian. Third: All balances deposited with various custodians shall then be transferred to the custodian with whom a contract was concluded.
How do I freeze the shares of a particular company in order to attend the General Assembly?
Custodians, managing the shareholder’s securities account, are responsible for freezing them upon the owner’s request for the purpose of attending the General Assembly.
Can I request a statement of securities balances for a family member (husband, wife, non-minor children)?
According to the instructions of the regulatory authority, a client can receive a printed statement of his own securities` transactions upon his request or under a power of attorney stating that.
How do I sell my shares?
Transactions (either sales or purchases) are carried out through licensed brokerage firms.
What if my shares are frozen against sale in favor of a brokerage firm and I want torelease them?
The stock release (unfreeze) can only be conducted by the brokerage firm that implemented the freeze.
Can I print a statement of securities balances for a legal Entity(company, institution, authority... etc.)?
This can be done by a request from the representative of the legal person, whose name is indicated in the commercial registry, or by means of a power of attorney, stating this procedure, or an authorization accompanied by a valid bank signature. The authorization or power of attorney shall be accompanied by a recent copy of the commercial registry (not exceeding 3 months) of the company or the establishment decision for this entity and a copy of the tax card.
What shall I do if my shares are frozen (inactive) and I am unable to sell them and I do not wish to freeze them again?
According to the decision of the Financial Regularity Authority, the client’s account is considered inactive after a period of a complete 12 months since the last buying or selling transaction through any brokerage company, until the customer submits a request to reactivate the account.
I own physical shares and need to amend the name on them because it is different from the national ID, or to amend the shares themselves, in order to deposit them in the central depository?
This is done through the issuing company of these shares.
I wish to pay my ownership fees with custodians.
The client's ownership fees are paid directly to his custodian. Except in case there isn’t an agreement with a custodian,the client needs to pay the safekeeping fees first at MCDR, then sign an agreement with a custodian to manage his balances and be able to buy or sell securities.
How do I authorize a brokerage firm or change to another company to deal on my account with the custodian?
This is done by submitting a request to the client’s custodian after signing a contract with the other company.
Can a client know the securities balances of another client, orwhether or not this client has any securities balances?
According to the instructions of the regulatory authorities and the internal regulations of the company, the balances of clients are not to be disclosed except to the client himself or with respect to a legal document that gives the other person the right to view the balances of the other clients; taking into account the confidentiality of the client’s accounts.
Can the issuing company conduct any of the following for its clients, whether to issue (a statement of securities balances, a statement of trading activity, a statement of taxes on coupons, or a statement of capital gains, ... etc.)?
According to the instructions of the regulatory authorities and the internal regulations of the company, issuing companies are not entitled to deal on the accounts of their clients unless there is a legal document from the client himself for this entity under a power of attorney that permits the procedure, in case the client is (an ordinary person), or the power of attorney or authorization to validate a signature from a bank for a person of legal authorization (company, authority, ..., etc.).
Can I issue an internal power of attorney in MCDR for an individual to deal on my account?
There is nothing within the company's internal procedures that allows this.
Can I waive my shares to anyone?
Listed securities are only traded through licensed brokerage firms, in accordance with the procedures followed by the stock exchange.
What are the procedures followed for distributing the inheritance of securities balances of a deceased client?
If aclient, owning securities balances, dies, his heirs should come by themselves or authorize someone with a power of attorney to carry out the procedure. He should present the original notification of inheritance of the deceased, the death certificate, ID of the deceased, and the ID of the heirs, in order to obtain a statement of balances. He can then transfer it to the legal department to submit a request to distribute the client’s inheritance.
I purchased securities for the first time, and when I extracted a statement of my securities balances from MCDR, I did not find any balance?
In this case, the customer should contact MCDR customer service to discuss the problem
Is it possible to pledge my securities deposited at MCDR?
The owner of the securities has the right to pledge them by signing a pledge contract with the pledgor, provided that this contract defines the rights and obligations of each of the two parties, and the pledge is registered in the records of MCDR.
Is it possible that the clientcan deposit his shares directlyinMCDR?
The client cannot deposit directly in MCDR. This is fulfilled through a custodian.
What are the procedures for keeping shares in MCDR?
The client chooses the custodian and signs a contract with him. This contract clarifies the rights and obligations of each of them towards the other. The custodian then opens a securities account for the client and receives the securities to be deposited in the central depository. MCDRreviews the received securities and finalizes the depository procedures. After accepting the securitiesMCDR adds the quantity to the custodian’s account, who in turn adds it to his client’s account.
Is there a maximum limit for dividends payment from banks?
The maximum limit is 150,000 EGP, or its equivalent in USD.
Does MCDR provide transfer of dividends internationally (outside the Arab Republic of Egypt)?
Yes, but provided that the security is in any foreign currency and for Non-Egyptians only, by transferring on the investor`s bank account.
What is the time period available for the customer to pay the profits?
The customer can receive his cash dividends within fifteen years from the date specified by the issuing company. Then the customer’s right expires according to the law. Unless there is a legal impediment, that makes it impossible during the specified period.
I have a number of securities for which I did not receive the expected amount of dividends. Why?
Dividendsare paid to the securities’ holder on the maturity date, and the client might have done either: a purchase after the maturity date ora sale before maturity. In this case, the customer goes to the customer service department of MCDR to print a statement of account of the security on the maturity date of the coupon to find out his real balance when disbursing.
Where are cash dividends’ outlets are located?
How do I activate the frozen shares?
Frozen shares are activated through:
 Custodians.
 Brokerage firms.
How to conduct any transaction on the account of any client under a power of attorney?
• In case any transaction is conducted with a power of attorney, there are certain conditions:
• Presence of the person entrusted to him with the original power of attorney.
• The power of attorney should clearly stipulate dealing on the client's account in securities.
• In case the power of attorney is from outside the country, it must be validated by one of the Ministry of Foreign Affairs’ certification offices, or the original power of attorney must be kept in the notary office.
I have securities balances on an old unified code, and the name they are registeredunder is a triple name according to an old ID. Upon renewal of the national ID, the name registeredchanged to a quadruple name, what should I do?
In this case, the client goes to any MCDR branch with an original or a copy of the old document in which the old unified code is registered and the original valid national ID to do the following:
 Request to activate stagnant shares.
 Request for a statement of recent securities balances.
 After that, the client goes to his custodian, so that the custodian addresses the Egyptian Exchange (Coding Department) to amend the client's data on the stock exchange's database according to the current national ID number.
 After the modification is complete, the client can dispose of his shares by selling,buyingorcollecting dividends.
I have more than one custodian and I want to transfer my shares to a specific one. What should I do?
The following steps must be followed in order to transfer the balances to a custodian:-
 Sign a contract with the custodian to whom the client wishes to transfer the balances, with a letter of approval accepting the transfer from the new custodian.
 The client submits the transfer request and the approval letter to the custodian from whom he wants to transfer the shares.
How to issuea statement of an account?
This is done through the client’s custodian or the customer service department in MCDR’s Headquarters:
 70 Al-Gomhoria Street – Ramsis, Cairo
 117 El Thawra Street - Heliopolis
 88 El Horreya Road – Alexandria
How to issueatransaction statement that shows the details of buying and selling operations?
This is done throughthe Customer Service department either in MCDR’s Headquarters:
 70 Al-Gomhoria Street – Ramsis, Cairo
 117 El Thawra Street - Heliopolis
 88 El Horreya Road – Alexandria
Who has the right to view the client's portfolio in MCDR?
 The client himself.
 The agent under a general or special official power of attorney stating this procedure.
What are the different ways of receiving dividends?
 Cash payments to the client or his agent from MCDR’s exchange outlets.
 Transfer to the client’s bank account.
 A bank check in the client’s name, to be paid only to the first beneficiary.
 An ATM card designated for disbursing dividends.
 Dividends to companies licensed for margin trading, if the contract with the client includes this from securities purchased through this mechanism.
 Dividends to the competent custodian if the contract with the client includes this.
What are the required documents for receiving the dividends of a specific security?
In the case of self-disbursement, the following documents are required:
 Personal ID corresponding to thedata in theclient’s unified code.
 In the event that the client does not attend in person, a power of attorney is needed (general or specific) stipulating the disbursement of dividends, as well as the personal ID of the agent.
What are the available dividend payment methods and what are the required documents?
First: Dividend payments (cash from banks):
The required documents:-
If the dividend payment is to the shareholder himself:
 National ID is required.
If the payment is by a power of attorney the following are required:
 Original power of attorney (general or specific).
 The national ID of the entrusted person.
If the payment is for minors the following is required:
 The national ID.
 The minor's birth certificate.
Second: Dividend payments through (transfers, cheques and swifts)
1- Payment through cheques:-
The shareholder fills out a form according to which the cheque is issued, and it is received on the day following the submission of the request.
2- Payment though transfers: -
It is a bank transfer in EGP of the dividends' value to the beneficiary's account to any bank inside the Arab Republic of Egypt only.
The required documents:-
In case of transferring to an account:
 The national ID.
 Filling out the transfer request from MCDR and write the “IBAN” in the account number field.
In case of authorizing another person to receive the payment, the following is requested:
 A power of attorney (general or specific).
 The national ID.
 Filling out the form of MCDR, which is an acknowledgment by the entrusted person of his desire to transfer the dividends’ value of his client, stating the client’s bank details.
3-Payments through Swift:
The required documents:-
In case of transfer to an account:
 The national ID.
 Filling out the Swift request form of MCDR.
 The name of the beneficiary client in English, according to what is stated in his bank.
 The SWIFT code of the addressing bank.
4- Payment through the custodian:
The custodian has the right to pay to clients (individuals or companies) on the same day of disbursement to his own account or to the customer's account directly.
How do I create a new unified code to start investing in the stock exchange?
There are several requirements in order to create the unified code:
• In case there are no other similar names to that of the client on the Egyptian Exchange database, a new unified code is created for him through either of the following:
 MCDR (Customer Service Department - Coding Section).
 Brokerage firms.
 Custodians.
• In case the client's name is similar to another client on the database of the Egyptian Exchange but he has no securities balances, the code is created through:
 Brokerage firms.
• If the same client already has a code, but his data is outdated and different from the current data, and this old code has securities balances,the new code is created through:
 Custodians.