Prohibition and criminalization of publishing recommendations related to securities listed on the Egyptian Stock Exchange
The Financial Regulatory Authority’s Board of Directors approved a legislative proposal to add a new article in Chapter Six (Penalties) of Capital Market Law No. 95 of 1992, which includes prohibiting and criminalizing the publication of recommendations and advice related to securities listed on the Egyptian Stock Exchange on social media in order to deter people who issue and publish recommendations. Misleading advice is used to deceive small investors, causing them to lose money while benefiting personally.
Dr. Mohamed Omran, Chairman of the Financial Supervisory Authority, mentioned that reports of monitoring trading operations on Egyptian Stock Exchange securities revealed the presence of many pages on social networking sites dealing with dealing with Egyptian Stock Exchange securities.
as well as the fact that many people provided statements and information Providing advice and recommendations on stock exchange-listed securities and publishing them on those virtual pages with the goal of directing investment decisions for individuals to achieve personal benefit while harming small investors.
He goes on to explain that the authority has noticed that these pages include many Egyptian Stock Exchange dealers, and that the recommendations published on them actually affect the trends of the shares listed on the stock exchange, as well as the decisions of many investors, and that this frequently leads to moving and changing the prices of the securities for which the recommendations are issued.
that is what It falls under the category of securities price manipulation and was specifically prohibited in accordance with the provisions of Article 321 of the Executive Regulations of Capital Market Law No. 95 of 1992.
For more details check the link: مقترح تشريعي للرقابة المالية بحظر وتجريم نشر توصيات واستشارات للأوراق المالية المقيدة بالبورصة المصرية على صفحات التواصل الاجتماعي – الأحد 5 ديسمبر2021 – الهيئة العامة للرقابة المالية