REGULATION WATCH- Shares in companies that voluntarily delist from the EGX can still be traded for up to three months after the company announces its plans to leave the exchange, according to new regulations the Financial Regulatory Authority (FRA) issued yesterday. The decision is meant to give shareholders some measure of maneuverability during the delisting process.

Companies undergoing a mandatory delisting will be required to buy back their freefloating shares at a fair market value determined by an independent financial advisor. Shareholders who hold more than 20% of a company’s stock will not be permitted to trade in shares that face mandatory or voluntary delisting without giving the market regulator a heads up.

Tags: