CAIRO: The Egyptian Stock Exchange (EGX) board of directors discussed establishing a new optional mechanism for commercial arbitration and settling commercial disputes between EGX parties in a Wednesday meeting, announced a press statement by the exchange.
“The EGX mechanism will be submitted for societal discussion at the upcoming period for getting markets parties’ points of views”, said chairman of EGX board of directors Mohammed Omran.
The EGX aims through setting such new mechanism to rapidly finishcommercial disputes as well as resume investments, according to press statement of the EGX.
The new mechanism could helpdetach commercial disputes quickly, develop the financial securities market along with benefitting from the legal cadres in the EGX, Omran added.
Saeed Hilal, Al-Hilal Al-Saudi Company for Financial Securities executive manager told The Cairo Post that the EGX is considering to activate such a mechanism to finish the commercial disputes rapidly as many commercial disputes cases were laid at the courts at the past ten years without resolution.
“Finishing commercial disputes’ committees will include members of EGX, Egyptian Financial Supervisory Authority, Investment funds and Misr for Clearing ,Depository and Registry Company “, he said , pointing out that , the committees will be independent entities to avoid siding.
The EGX will only monitor and regulate the committees’ work, adding that the activation of the mechanism is expected within one year.
After approving the EGX mechanism by the capital parties’ brokers, investors, investment funds and EGX traders, commercial arbitration would be stipulated at the contract between the two contractors, he added.