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Daily News Egypt

General Motors Egypt to increase capital eightfold

  • February 7, 2018

    Saudi shareholders reject increase, ask GAFI to inspect company’s board of directors’ work.

    General Motors Egypt (GM) decided to increase its capital eightfold, raising controversy among the Arab shareholders of the company who refused the decision and demanded the General Authority for Investment and Free Zones (GAFI) to suspend the capital increase procedures and form a committee to inspect the company’s board of directors’ work.

    GM Egypt is an Egyptian joint stock company established under the Egyptian Investment Law in 1983. The main shareholders of the company are Egyptian investors including the Mansour family and others with a 33% stake, General Motors Corporation with 31%, Isuzu Motors with 20%, and Saudi investors represented by the Kaaki family and a Jeddah-based investment company, with a 16% stake.

    Media outlets tried to know GM’s comment on the case, but the company’s officials refused to discuss shareholders’ affairs in media.

    GM Egypt has decided to increase its issued and paid-up capital from EGP 219.8m to EGP 1.99bn, an increase of EGP 1.78bn, through inviting shareholders for subscription to new shares to be paid in cash at a nominal value of EGP 840 per share. The share price is to be paid in US dollars.

    The company attributed the planned increase in capital to the decline in the company’s cash levels, decline of the automotive industry in 2017, and cumulative losses in 2016 and 2017. According to the company’s financial statements at the end of December 2016, the losses of the company exceeded EGP 848m, bringing the company’s total losses in 2016 to about EGP 1.9bn.

    Atef ElSherif, legal adviser to the Saudi investors, said that he submitted complaints to the Ministry of Investment and International Cooperation, the GAFI and the Financial Regulatory Authority to stop the capital increase procedures.

    He also filed a lawsuit against the decision at the State Council, and asked the GAFI to inspect the company’s board of directors’ work. The shares of the complainants, amounting to 14.7% were frozen at the request of the GAFI.

    He pointed out that this is an enrichment of the majority of shareholders at the expense of the minority that will not be able to subscribe to the sudden increase in capital.

    The financial statements of GM Egypt showed sales of EGP 5.1bn in 2016 compared to EGP 5.9bn in 2015.

    The net financing costs amounted EGP 2.9bn in 2016, resulting from due interests of EGP 97.6m, commissions for opening letters of credit worth EGP 59m, financial leasing’s interests of EGP 2m, dues for foreign suppliers of EGP 604m, and losses due to changes in foreign exchange rates of EGP 2.25bn.

    Atef ElSherif

    Beltone’s Attorney: the verdict enhances our position in the lawsuit against FRA & EGX

  • December 11, 2017

    Atef ElSherif, Managing Partner of ElSherif Law Firm & Consultants and Beltone Financial Holding’s attorney, said that the acquittal of the accused made by the economic court who were referred by FRA in charge of manipulating Beltone Financial Holding’s share price strengthens Beltone’s position against EGX & FRA administrations and also affirms that the non-opposability of their decisions regarding stock transactions.

    He also said that he is waiting for the report of State Delegated Authority regarding the lawsuit at the end of December.

    ElSherif noted that the court had scheduled the verdict on July 1st,2017; however it decided to reopen the lawsuit in order to bring a certificate indicating what had happened in the lawsuit of manipulating the shares of Beltone.

    Previously, FRA filed an action against 12 investors of the traders of Beltone shares in the stock market, accusing them for manipulating the shares because its price increased by 427% during the period from February 9 until April 11, 2016.

    The economic court governed in accordance with the report of capital market expert which affirmed that the transactions had no fraud.

    In last April, ElSherif, Managing Partner of ElSherif Law Firm & Consultants and Beltone Financial Holding’s attorney, said that we asked for referring the lawsuit to a new circuit for private reasons in which he preferred not to disclose them. The court felt embarrassed and it referred the lawsuit to the second circuit.

    Beltone filed a lawsuit no. 58364 of judicial year 70 against EGX & FRA Chairmen because of the repeated cancellations regarding the transactions of Beltone’s shares during February, Mars, April, May & June.

    Beltone’s share price has risen sharply during the last period after the acquisition offer of CI Capital that had been submitted and such transaction fell apart because of some obstacles.

    The report mentioned that the reason of increasing the share price is that Orascom Telecom authorized the subsidiary company, Beltone Financial Holding, to purchase 100% of the capital of CI Capital as part of Orascom’s plan to merge Beltone & CI Capital to establish a regional financial conglomerate.

    On February 2016, CIB approved the mandatory tender offer which has been submitted by Beltone to acquire CI Capital at 924 million Egyptian pounds.

    Afterwards, Beltone Financial Holding made an agreement with CIB to suspend the negotiations regarding the acquisition of the CI Capital which is a subsidiary company to the bank and not to renew the validity period of the sale contract that was ended on June 9, 2016 and finally to repay the payment of 50 million pounds.

    Atef ElSherif

    Suspending the revocation of Namaa Securities Brokerage Company license

  • July 13, 2017

    In the end of the last week, Namaa Securities Brokerage Company won a lawsuit which was filed before the administrative court to suspend the execution of the board of directors of EFSA’s resolution no. 87 for 2016 that was issued on 26/7/2016 and this resolution stipulated that the license of Namaa Securities Brokerage Company would be revoked.

    Shaban Mahmoud, Attorney of Mr. Ahmed Bakr who is the board chairman of Namaa Securities Brokerage Company, said to Almal, “We are working on getting the writ of execution to send it to EFSA to suspend the revocation”.

    He also said that this ruling was a summary judgment and it would be fully judged in the current year.

    Namaa Securities Brokerage Company faced various legal positions, started by the resolution of Managing Funds of Muslim Brotherhood Commission and in August 2015, EGX administration announced on the trading screens that the company wouldn’t be able to benefit from the trading systems, services and facilitates which were provided by EGX and also the resolution prohibited the workers to attend the trading sessions pursuant to the resolution of Managing Funds of Muslim Brotherhood Commission which stipulated that the money of the company would be in custody.

    In September 7th 2016, the grievances numbers 15 and 17 regarding EFSA’s resolution, which were filed by Hesham Mohamadi Mohamed Sowilam and Ahmed Bakr Darwish who are the shareholders of Namaa Securities Brokerage Company, were accepted in form and rejected in merits pursuant to the resolution which was issued by the grievance committee of EFSA.

    Hesham Mohamadi Mohamed Sowilam and Ahmed Bakr Darwish own 80% of the shares of Namaa Securities Brokerage Company. Both of them filed separate lawsuits to suspend the execution of EFSA’s resolution and to re-license. Ahmed Bakr, Board Chairman, won his lawsuit while the second lawsuit has not been ruled yet which is handled by ElSherif Law Firm & Consultants.

    Atef ElSherif, who is in charge, the lawsuit claims for suspending the revocation of the license in addition to bind EFSA to convene general meeting for reforming the board of directors of Namaa Securities Brokerage Company and discuss the financial and legal positions of the company, the shareholders and the clients and their effects.

    He also added,”the lawsuit will be heard by the administrative court next September and there are intentions for joinder of claims”

    Ahmed Bakr Darwish, Board Chairman and Managing Director of Namaa Securities Brokerage Company, said to Almal that his company filed an appeal to the counselor Ezzat Khamis, the President of Managing Funds of Muslim Brotherhood Commission, to challenge the resolution of custody of the funds on the ground that these funds are owned by business men belong to the terrorist group.

    Namaa Securities Brokerage Company was founded in 2007. In the same year, it obtained a license to practice securities brokerage, its authorized capital is LE 50 million and its paid-up capital is LE 10 million.

    Atef ElSherif

    ElSherif: Capital market leaders should have noted Ministry of Finance that period of postponing tax is nearly over

  • May 12, 2017

    Dr. Atef ElSherif, Capital Market Expert & Former EGX Chairman, denies the position of capital market leaders towards the termination of period of postponing capital gains tax before approving the stamp tax law by the parliament. He said, “They should have noted Ministry of Finance that the specified period is nearly over to submit it to the parliament quickly especially that the decisions which were made by Supreme Council for Investment (SIS) had been approved last November”.

    He also added that it’s believed that the stamp tax will have a retroactive effect after being approved by the simple majority (50%+1), he anticipated that the scramble will have a negative effect on stock exchange performance during the coming period.

    The Supreme Council for Investment has decided to extend the postponement of application of the capital gains tax for the listed securities for three years starting from 16 May 2017.

    Ministry of Finance also declared in a statement that they are working on implementing this amendment which is postponing three years and other amendments that are related to the incentives which incorporated in the new investment bill to insert them in the income tax law and submit it to the parliament as it’s the authorized entity to approve the bills.

    The ministry also cares for approving these amendments quickly before the period of postponing the capital gains tax ends and also explained that IMF report does not contradict with SIS’s decisions as the report was made pursuant to the current applicable law which stipulates that the postponement will end on May 2017 and before making decisions by SIS.

    Atef ElSherif

    Referral of Beltone’s lawsuit against EGX & EFSA to a new circuit

  • April 4, 2017

    Cairo – Mubasher: Atef ElSherif, Managing Partner of ElSherif Law Firm & Consultants & Beltone Financial Holding’s attorney, said that the lawsuit filed by the company against EGX & EFSA was referred to a new circuit because of the repeated cancellation of transactions of the company’s shares.

    ElSherif added in special statements to Mubasher, “We asked for referring the lawsuit to a new circuit for private reasons and after the court had felt embarrassed, it approved the request and referred it to the second circuit”.

    Beltone’s attorney noted that he will go to the second circuit secretary to set a date for the next hearing and he will request for adjudication in next hearing.

    ElSherif demanded for rapid adjudication to reserve shareholders’ rights especially this lawsuit was filed since almost a year.

    Beltone filed a lawsuit no. 58364 of judicial year 70 against EGX & EFSA Chairmen because of the repeated cancellations of transactions of the company’s shares during February, Mars, April, May & June.

    Beltone’s shares largely increased during the last period after submitting the CI Capital acquisition offer and this deal fell apart because of some obstacles.

    At 11:30 am, Beltone’s share price increased by 3.28% at 11.01 L.E.

    Atef ElSherif

    New updates regarding Beltone’s lawsuit against EGX & EFSA

  • April 4, 2017

    Atef ElSherif, Beltone Financial Holding attorney, said, “The lawsuit filed by the company against EGX & EFSA was referred to a new circuit because of the repeated cancellation of transactions of the company’s shares”.

    ElSherif added in press statements, “We asked for referring the lawsuit to a new circuit for private reasons and after the court had felt embarrassed, it approved the request and referred it to the second circuit”.

    Beltone’s attorney noted that he will go to the second circuit secretary to set a date for the next hearing and he will request for adjudication in next hearing.

    ElSherif demanded for rapid adjudication to reserve shareholders’ rights especially this lawsuit was filed since almost a year.

    Beltone filed a lawsuit no. 58364 of judicial year 70 against EGX & EFSA Chairmen because of the repeated cancellations of transactions of the company’s shares during February, Mars, April, May & June.

    Beltone’s shares largely increased during the last period after submitting the CI Capital acquisition offer and this deal fell apart because of some obstacles.

    Beltone Financial Holding

    Beltone’s lawsuit against EGX was adjourned to inspect EFSA’s documents

  • February 7, 2017

    By Mostafa Talat

    The first circuit of the administrative court at the state council adjourned the lawsuit that filed by Beltone Financial Holding and its shareholders against EGX & EFSA because of the repeated cancellation of transactions of the company’s shares to 4 of April 2017 for inspection.

    Atef ElSherif, Managing Partner of ElSherif Law Firm & Consultants & Beltone Financial Holding’s attorney, said that the court adjourned the lawsuit so that the company can inspect the documents were submitted by EFSA, and also he noted that the EGX submitted documents to the court last hearing, so the lawsuit was adjourned to inspect these documents.

    ElSherif assured to Almal that the court permitted the company to get some documents from EGX such as operations commission minutes according to the article no. 94 of the executive regulation of the law no. 95 of 1992 which prove that the legal position is clear so that the cancellation resolutions are null and void, and also he added that the number of shareholders that joined to the lawsuit increased to be 18 shareholders until now and the door is opened for any new shareholder wants to join.

    In the end of trading session, Beltone’s stock closing price decreased to 10.05 L.E by 0.29% and the number of operations reached to be 98 thousand operations.

    Beltone and its shareholders filed two lawsuits against EGX & EFSA because of the repeated cancellations of transactions of the company’s shares and the administrative court ordered a joinder of actions.

    EGX cancelled transactions on company’s stocks according to the article no. 21 of the Capital Market Law No. 95 of 1992 which stipulates that: “The chairman of stock exchange may suspend trading offers and bids aiming at price manipulation. He may revoke transactions which violate laws, provisions, regulations and decrees related to their implementation, or which have been carried out with unreasonable prices.”

    Atef ElSherif

    The Supreme Constitutional Court nullified EFSA’s resolution regarding the list of OTC released shares

  • February 5, 2017

    The board of directors meeting will be convened tomorrow to complete the procedures of stock split and capital increase.

    ElSherif: We wait for the publication of the court decision in the official gazette to complete the procedures of the lawsuit at the state council.

    The board of directors’ meeting of “ElSohag ElWatnya for Food Industries” will be convened tomorrow on Monday to discuss stock split and capital increase after the supreme constitutional court ruled that the EFSA’s resolution regarding the prohibition from splitting stocks of OTC companies is null and void unless EGX chairman approved it.

    Colonel Salah Hariedy, member of the board of directors of ElSohag ElWatnya, the company will convene a board of directors meeting to pass a stock split resolution in which the nominal value of the stock will decrease from 10 L.E to 50 Pt. after the supreme constitutional court ruled that the EFSA’s resolution is null and void.

    The board of directors also will ratify the former board of directors’ resolution which increases the paid-up capital from 21, 73 million L.E to 152, 1 million L.E.

    “ElSohag ElWatnya for Food Industries” company filed a lawsuit to the state council and the lawsuit was referred to the supreme constitutional court to rule over the EFSA’s resolution regarding the abidance of the OTC companies to get a prior approval on capital increase or stock split resolutions.

    Dr. Atef Yassien ElSherif, ElSohag ElWatnya’s attorney, said that the court ruled that the EFSA’s resolution no. 54 of year 2009 is null and void which stipulates that “In the event of amendment the data or registered release elements by the company, the EGX chairman may approve on continuity of the share trading of this company according to orders’ mechanism and the justifications which are provided by the company and the EGX approved it, the board of directors of the company covenants to take the necessary procedures to re-list company’s shares in EGX’s schedules during the period which is determined by the EGX.”

    ElSherif also added that the company will go for stock splitting so that the nominal value will decrease from 10 L.E to 50Pt. and EFSA will bear the attorney’s fees.

    ElSherif also said that the company will complete the procedures of the lawsuit at the state council after the court decision was made yesterday and we will wait for the publication of the court decision in the official gazette.

    “ElSohag ElWatnya for Food Industries” company is a company which listed in EGX and currently, its shares are traded over the counter (OTC) after being transferred by EGX administration from the internal market because of the non-abidance by the listing rules in 2009.

    Atef ElSherif

    Today, Hearing of the adjourned Beltone’s lawsuit against EFSA & EGX

  • December 27, 2016

    Today, the administrative court adjourned the lawsuit of Beltone Financial Holding and its shareholders against EFSA & EGX to 7 of February 2017 for the third time.

    Atef ElSherif, Managing Partner of ElSherif Law Firm & Consultants, Attorney of Beltone Financial Holding, said that the first circuit of the administrative court adjourned the lawsuit which were filed by Beltone Financial Holding and its shareholders against EGX & EFSA regarding the repeated cancellations of transactions of the company’s shares since last February and the administrative court combined the two lawsuits into one lawsuit and the company requested for compensation for the damages incurred by them.

    The administrative court adjourned the hearing of this lawsuit which were filed by Beltone and its shareholders twice after requesting some documents that were related to the lawsuit from the EGX administration and also the legal responsible of the EFSA was absent for the second time.

    Judicial source said to Alborsa News:” The court issued a resolution which was a notification sent to “Sherif Samy”, EFSA Chairman, to attend in person or his representative can attend the next hearing which will held next month.”

    ElSherif noted that Beltone and its shareholders brought to justice because of falling of the market value as a result of the repeated cancellations of the company’s shares, and also it affected the company’s reputation negatively by spreading rumors that there was manipulation which affected the confidence of the Egyptian & foreign shareholders and the dealers which led a reduction of transactions nationally and internationally as well as the capability of the company to increase its capital by subscription.

    ElSherif requested for materialistic and moral compensation for the damages incurred by the company and also for the nullification of the EGX resolution regarding the repeated cancellations of transactions of the company’s shares as it had the grounds for nullification which are violation of law, lack of reason and abuse of power and also the nullification of EFSA resolution.

    EGX cancelled transactions on company’s stocks according to the article no.21 of the Capital Market Law No. 95 of 1992 which stipulates that “the chairman of stock exchange may suspend trading offers and bids aiming at price manipulations he may revoke transactions which violates laws, provisions, regulations and decrees related to their implementation or which have been carried out with unreasonable prices.”

    Atef ElSherif

    Business News files a grievance regarding the reserved decision of its movables

  • December 15, 2016

    Company’s consultant expects the decision will be made within 2 weeks.

    MCSD Official: No shares listed for the company or its chairman in the stock exchange ... Khodair: No one notified us.

    Sakr: The legal & financial position of the company is clear and its balance sheets and reports are ratified by GAFI

    The legal representative of Business News Company, the owner of Alborsa News & Daily News Egypt, filed a grievance to managing funds of Muslim Brotherhood commission regarding reserved decision of company’s bank accounts and also the bank accounts of its chairman Mostafa Sakr in charge of belonging to Muslim Brotherhood that was published by Middle East News Agency yesterday.

    The company issued a statement and affirmed that its legal and financial position is clear and its balance sheets and reports are ratified by GAFI and also it did not receive any funds whether nationally or internationally, its capital and advertising revenues only are used in funding its business.

    Sakr said in this statement that its company will prove the clearance of its position and will defend for its reputation and workers’ interests, Atef ElSherif, The legal consultant of Business News, affirmed that the company is ready to furnish all documents that confirm the clearance of company’s position, the company was surprised of freezing bank accounts through financial transactions, he also expected that the decision will be made within 2 weeks.

    Salah Eissa, Supreme Council of Press spokesman, said that there are no any grievances filed to the council by Business News presses and in case of filing that grievances and submitting a petition to intervene, he will study legal intervention methods, Yehia Kalash, The Chairman of the Syndicate of Journalists, said that the syndicate has the right to intervene legally but after hearing the grievance that filed by the company.

    MCSD Official affirmed that Business News and its chairman Mostafa Sakr have no any listed shares in the stock exchange. Mohamed Khodair, CEO of GAFI, said that no one notified GAFI of such reserved decision.

    Atef ElSherif

    Analysts advise to keep the shares as the stock exchange will reach its historic summit

  • November 21, 2016

    Tomorrow, Orascom Telecom will start selling 7% of Beltone and expectations of great jumps for the shares.

    The leading shares exchanged their rising roles in the stock exchange during the current period through upward general climate of the market that creeps to its historic summit at 12 thousand points.

    During Monday trade transactions, EGX index rose by 2.36% in the end of trading session and it closed at 11546 points and it was about 450 points from the EGX historic summit nearly 12000 points and the EGX 50 Equal Weights index rose to 1804 points by 2.6%.

    The individuals executed 74,3% of the stock transactions, most of the traders sold their stocks except the foreign individuals purchased by L.E 22,2 million and the organizations executed 25.7% of the stock transactions, most of them purchased the stocks and the foreign organizations purchased L.E 122,8 million.

    Madinat Nasr’s stock achieved strong growth during Monday trade transactions and reached to 19.94% by 10% and ESRS’s stock rose to L.E 10,7 by 10% and most of the leading shares were in the current levels without remarkable change.

    Mohamed Al Asar, Technical Analysis Manager of Capital Securities Brokerage Company, said that the market moved correctly towards its historic summit especially the volume of trade improved and there were foreign organizations in the stock exchange that represented a market’s fuel to offset its value decline after pound floating and he also expected that the market will target levels of 11600 points during Tuesday trading session and the leading shares will exchange their rising roles and also the shares of EGTS, Qalaa, Amer Group, ACGC.CA, Palm Hills and Pioneers will rebound.

    Mohab Ageiena, Technical Analysis Head Section of Beltone Company, said that the market can reach its historic summit at 12000 points and 11000 points represented a nearest support to the market and also he advised to keep the shares in the current period and it will rebound.

    Mohamed Saad, Senior Equity Trader at Naeem Fund, expected that the corrective market movement will start after reaching 12000 points during two trading sessions and also he added that the nearest scenarios will be that the market will consolidate at 12000 points and form new historic summits.

    EGX administration decided to open special transactions market starting from Tuesday trading sessions to sell 11,83 million shares of Beltone Financial Holding that represents 7% of the company capital by 12.56 for each stock and sales orders will be created until Thursday trading session before the market administration cancels stocks transactions.

    Dr. Atef ElSherif, Legal Consultant, said that the article no.21 in which the EGX based upon for the cancellation is not pertinent to the free-trade stocks ratio in the stock exchange and depends significantly on market administration vision for the market manipulation and he also added that increasing free stocks ratios reduces the chances of questioning in the presence of manipulation.

    Ehab Rashad, CEO of Mubasher International Company, believed that increasing free-trade stocks ratio prevents the cancellation of stock transactions and he also expected that the proposed stocks will attract the trade dealers.

    Eslam Abd El Kader, CEO of Pioneers Securities Brokerage, expected that the proposed stocks will be covered four times and also he added that most of the investors prefer purchasing in the last day of special transactions market and the share price will rise to L.E 20 after increasing free-trade stocks ratio in the market.

    Atef ElSherif

    Adjourning Beltone’s lawsuit about canceling the suspension of share transactions resolution to 27th of December

  • November 1, 2016

    The first circuit court of administrative judiciary of state council, headed by judge Bakhit Ismail, vice president of the council on Tuesday decided to postpone a lawsuit of Beltone against the EGX & EFSA regarding the repetitions on transactions of company’s shares to 27th of December.

    Case no 58364 of 70 judicial year was filed against the EGX & EFSA because of the repeated cancellations of transactions of the company’s shares since February and Administrative judiciary combined the two lawsuits to one lawsuit.

    EGX cancelled transactions on company’s stocks according to the article no.21 of the Capital Market Law No. 95 of 1992 which stipulates that “the chairman of stock exchange may suspend trading offers and bids aiming at price manipulations he may revoke transactions which violates laws, provisions, regulations and decrees related to their implementation or which have been carried out with unreasonable prices.

    Atef ElSherif

    Former EGX chairman said in his interview with “Alborsagia”: “Omran” violates rules without accountability

  • October 30, 2016

    Situation of EGX administration towards Beltone shares is a strange and never happened before in the history of the capital market.

    Unclear vision stands behind the occurrence of frequent losses and there is no protection for the investors.

    EFSA waives its role and it refers traders for prosecution.

    Absence of Minister of Public Enterprise Sector from attending government proposal committee is a paradox.

    I was exposed to an unfair smear campaign…the market interacts with my resolutions within 40 days.

    Atef ElSherif, Former EGX Chairman, opened his heart to “Alborsagia” to reveal all details pertaining to crisis of Beltone Financial Holding Company with EGX administration & EFSA and he also spoke about his term as an EGX chairman and he also assured that he issued a lot of important resolutions despite his short term as an EGX chairman which lasted only for 40 days during critical period.

    -

    What is the latest news about the lawsuit that you filed against EGX because of the cancellation of Beltone stock transactions?

    From legal aspect, the lawsuit was adjourned to next November 1, 2016 and as for its situation in the stock exchange; EGX administration has a strange attitude and rarely happens, I worked more than 20 years in the EGX and I never saw this attitude made before by EGX administration towards to a listed share especially a legal article was set for Beltone Financial Holding company which is the article no.34 bis of listing rules regulation by adding a clause that if the company increased its shares during a certain period, a fair value study will be submitted and according to this article, if the price increases or decreases and this article is set only for disclosure and transparency.

    -

    Is this article added just to achieve unjustified benefits to some shares?

    This article was set during the cancellation of stock transactions of Beltone last February and it was set nearly in June, it’s supposed that it will be implemented later but it was implemented with retroactive effect and this is wrong because laws do not have a retroactive effect and when this article was implemented on Beltone, there were two companies working in the financial services sector and listed in NILEX and they achieved benefits more than the benefits that were achieved by Beltone and these two companies were not asked to submit fair value study and this means that the fair value study is asked to submit only by Beltone.

    -

    What after submitting fair value study and what are wrong with EFSA & EGX?

    We started a new marathon after submitting the fair value study, what was disclosed by trade screens at L.E 10.07 and after approving the disclosure by EFSA and EGX published it on trade screens, Independent financial consultant company was asked to submit the fair value study but who said that the independent financial consultant sends the fair value study to be disclosed, it’s supposed that the company sends the fair value study.!!

    -

    Why stands EGX administration before company’s share...Was this happened because of manipulation?

    In case there is a market manipulation, EGX chairman reports EFSA, who stops the manipulators’ codes, if we suppose there are 2000 investors and there are 100 manipulators, what is the guilt of the rest of the shareholders to incur losses because of the repeated cancellation.

    -

    EGX believes that it is illogical that the share price rises from L.E 4 to L.E 25 in a short period of time?

    Beltone’s share price rises during 40 trading sessions and the article no.21 which is the ground for the cancellation of stock transactions by EGX chairman existed in case of ups and downs, so why did EGX chairman leave it to rise and he owns the article no.21, Once EGX allowed to the stock to reach this price, so it’s legal.

    -

    There are some people say that the EGX issued this resolution to protect the investors?

    Who claims that what happened against Beltone’s stock was for the protection of the investors is a big mistake, when EFSA chairman was asked to provide fair value study for Qalaa, he said that the company made losses, why should I ask for a fair value, the fair value study is prepared for rising and falling to protect the investors and for the transparency and disclosure, the share price of the company fell from L.E 14 to 60 pt. should not asked to submit fair value study. How did EFSA approved on many capital increases for this company under its supervision, all the profits were achieved by the company was under supervision of EFSA, so who is the responsible for share price falling by this way.

    -

    Is EGX depending only on article no.21 to cancel stock transactions?

    Article no.21 has 4 paragraphs, first one is the EGX chairman may suspend trading offers and bids aiming at price manipulation.

    The article is clear; EGX chairman can’t suspend trading offers and bids except in case of price manipulation and if EGX chairman wants to cancel a transaction, he should prove the manipulation. Is it logical that all transactions include manipulation and EGX chairman did not refer any one for prosecution so its resolution is null & void according to the article no.21., also the second paragraph of the same article which stipulates that: “EGX chairman may revoke transactions which violate laws, provisions, regulations and decrees related to their implementation, or which have been carried out with unreasonable prices.”, EGX chairman cancels stock transactions because of unjustified price and accordingly he confesses that the stock transactions are made according to the law, regarding the price manipulation, who is the responsible for determining the justified price? The share price rises to L.E 24 and the EGX did not interfere and say it’s an unjustified price, so any price under this number is justified. Investors’ decisions cannot be interfered and if we will determine the justified price so “what is the use of EGX?!”

    The core of the stock market is supply and demand so it determines the share value and the investor who believes there is a bright future for the company to purchase shares.

    EGX chairman reduces the share price several months ago and in exchange, there is an insistence from the investors in an unusual precedent that the company deserves a higher price; but EGX chairman is a persistent to violate article no.1 daily under EFSA supervision and no one comments, however the article is clear. As long as he allowed the share price to increase to L.E 25 so the difference is justified and if this difference was not justified, he would cancel the stock transactions, “He should not – after sleeping three or four months – say that I protect the investors...This is joke”.

    -

    Who has the right to call EGX chairman to account?

    EGX chairman violates the law daily especially article no.21 which is the ground for the cancellation of stock transactions and I believe that resolutions of EGX chairman and silence of EFSA Chairman are considered as violations of their job duties, EGX’s duty is to supervise, not to interfere.

    -

    Some experts demanded that the EGX chairman must be dismissed because of accusing him of what is happening in the market?

    My testimony will be biased but during the recent period, the resolutions of EGX administration and EFSA contribute directly in making market problems and make it undisciplined, whereas EFSA refers half of investors for prosecution. Is it logical to refer a loser investor for prosecution?!Whereas EFSA refers half of investors for prosecution and EGX cancels any stock transactions in which the share price rises and does not cancel any stock transactions in which the share price falls, Are these resolutions will help the market to raise, the legal speculation is required and it’s normal that the investor will be an adventurer otherwise why did he participate in the stock exchange!

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    Does the market need speculations during the escape of the dealers in fear of courts?

    The legal speculations are required, stock investor totally differs from any other investor, he has passion and he is an adventurer otherwise he can deposit his money in banks or purchasing real estates and there is a magnificent judgment by state council judge Hamdi Yassin Okasha that defines the manipulation which requires two conditions for the illegal speculation which are; the actual occurrence of manipulation and injured, EFSA & EGX chairmen cannot say that the market is injured, you are not a proxy for any one and an official report must be submitted.

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    What is your vision for the market and why is the EGX always exposed to loss at the moment?

    The unclarity is the most reasons for EGX regression; there is a fear condition of imposing taxes in 2017 in addition to raise in interest rate which harms the market significantly and also the CBE protects deposits of the investors. Unlikely, where is the role of EGX administration & EFSA in protecting the investors? EFSA adopted the investors’ point of view regarding taxes on stock exchange additionally to the strange fatawas that mentions that the stock exchange is a sin. Unfortunately, we will not represent the industry, when the stock exchange was the fourth stock exchange at the international level; it was run by trustworthy people but nowadays there is no supervisor for the acts of both EGX & EFSA chairmen. The administration depends on three points which are planning, execution and surveillance but nowadays there is no planning and surveillance and there is a bad execution and therefore, the result is number of stocks controls the stock exchange.

    -

    Do you think that the government will impose taxes on the stock exchange despite of preparing its proposals?

    As long as there is no protection for the industry “anyone can do anything”, this happened to shares such as MOBCO share that proposed at L.E 50 and after one week, it falls to L.E 25, who will be responsible for the fault rating of the shares and why did not who approved on this rating call to account, are the criteria applied on this stock and was the resolution issuer sentenced to penalty because of causing damages to the investors. In the late nineties, it was “who moves beside the stock exchange, he will win”. The system needs supervision, good planning and good execution.

    -

    Will the government succeed in the new proposals

    Is the government will succeed in the new proposals they intend to put forward in the stock exchange in the next phase?

    It’s so ironic that the committee that will determine the companies that will be proposed in the stock exchange does not include minister of public enterprise sector, if the state is serious about proposing public enterprise companies in the stock exchange, it should restructure EGX & EFSA by attracting investors’ confidence.

    -

    Why were you exposed to smear campaign when you ran the EGX?

    The campaign which I was exposed to was because of a newspaper reporter and I think he disclosed the man that he follows and if there is a right one word regarding me, I will not be in my place now. When I quitted my job as EGX chairman, I was honored by minister of investment. Whereas I ran the EGX for 40 days, the stock exchange index rose by 25% and the trade volume rose to half a billion pounds. The EGX has many experts and anyone who is in the market will be better than anyone who is out of the market at running the EGX.

    -

    Is the academic person currently better or any person inside the kitchen to run the EGX?

    The academic person is not good at running the EGX and someone inside the kitchen must run the EGX, the academic person by nature needs time for thinking and contemplation however, EGX needs a quick resolution. When I ran the EGX, I issued a resolution which was the non-closure of the market under any conditions. At that time, the banks closed before the EGX for half an hour and the EGX was still open until 1:30 according to our agreement with MCSD.

    -

    Is it better that the EGX chairman is to be elected or appointed?

    I believe that he must be” son of craft” whether he will be elected or appointed, this means that he must work at the capital market. To appoint a managing director, he should work in the field for 15 years, so why do not we require the same condition for choosing the EGX chairman!

    -

    Supervision on stock transactions considered as a sword on investors’ neck, and there is a complaint that the EGX curbs the shares in case of rising, how do you think about this?

    There are rules that control the stock transactions, whereas the EGX has the right to intervene in case of rising or falling of the share price for example by 5% daily and the EGX referred someone for prosecution because he was the reason for the rising of share price by 3% so how did the EFSA refer him for prosecution and the allowed percentage for rising the share price by 5%!, This is an academic implementation to the law and this contradict with stock exchange independence which is stipulated in the republican resolution that bestows to the EGX chairman the right to set rules So that there will be flexibility. Currently, the number of the board of directors of the EGX is 11 members, so where are the board of directors! , There is no member of the board of directors comments on any case regarding the EGX and why did not EGX chairman start with the formation of the board of directors and convene a press conference to reply on all matters that related to the market and investors’ questions, the board of directors includes CBE representative, banks’ union representative, two members of brokerage companies, public companies’ representative, listed companies’ representative, chairman, vice chairman and two experts.

    -

    Does the EGX chairman interfere in the formation of the principal stock exchange index?

    EGX chairman does not interfere directly but he can interfere indirectly. He chooses the index committee members and not the board of directors and also he is the index committee chief and he agrees on setting regulatory rules.

    -

    Does the EGX run by personal whims?

    It’s supposed that EFSA sets general rules and the rules are general and abstract, “because of someone is funny, I will set rules for him and the other one is ridiculous, he will not be subject to this rule”. This is considered as a grave breach for their job duties. who made mistakes, he will be punished.

    Atef ElSherif

    In the first hearing after fair value report... Beltone’s shares are traded without cancellation

  • October 16, 2016

    Atef ElSherif: We will continue the lawsuit until the damages are determined.

    In the first hearing after EFSA approval on publishing fair value report of “Beltone Financial Holding” shares, Today, EGX administration cancelled the executed transactions on company’s stocks in the trading session and the cancellation lasted for 18 consecutive trading sessions.

    Today, EFSA approved on publishing fair value report of Beltone Financial Holding stocks before starting the trading session where stock’s value was estimated at 10.07 L.E per share, EFSA described the report that it includes nearly optimistic future predictions. So, it includes high risk and the actual results may differ with the predicted results.

    In the end of today’s trading session, Beltone’s stock closing price raised to 10.71 L.E up by 9.96% because of stock transactions which were estimated at 21,057 stocks, were valued at 225,520 L.E and were executed through 24 operations.

    Atef ElSherif, Managing Partner of ElSherif Law Firm & Consultants, Beltone’s & its shareholders’ attorney, who filed a lawsuit against EGX & EFSA chairmen in person, company shareholders will continue the lawsuit until the damages are determined which were incurred by them through the cancellation of stock transactions for a period exceeds 200 trading sessions.

    He also added to “ELMAL” that the non-cancellation of stock transactions in today’s trading session did not mean the end of the matter; he also noted that previously, the EGX cancelled stock transactions then it stopped the cancellation for a one or two trading session and again, it cancelled the stock transactions.

    Atef ElSherif

    Beltone’s attorney: We demanded the trade surveillance reports…compensation’s value will depend on the size of damages

  • October 11, 2016

    The lawsuit was adjourned to November 1 and the company will make a judgment call.

    Atef ElSherif, Managing Partner of ElSherif Law Firm & Consultants, Beltone Financial Holding attorney, filed a lawsuit against EGX & EFSA because of the repeated cancellations of transactions of the company’s shares before the administrative court.

    Yesterday, the company demanded viewing the trade surveillance reports during through hearing the case.

    ElSherif said that the case adjourned to November 1, 2016 upon the request of EFSA for viewing and he assured that he will make a judgment call the next hearing.

    As ElSherif is an attorney of Beltone Holding, he filed two lawsuits against EGX & EFSA Chairmen three months ago because of the repeated cancellations of transactions of the company’s shares.

    ElSherif, the former chairman of EGX, illustrated to “Almal” that the compensation value was not set because of the repeated cancellations of transactions of the company’s shares; he also noted that the size of damages will be clear in the final trading session before issuing the judgment.

    Beltone’s attorney preferred not to go into details and he also said that the damages will depend on market value of the shares and also will be affected by the unjustified repeated cancellations which made during the periods of market rising for example or rising of entire sector’s shares.

    Beltone’s stock price increased after offering a takeover of CICapital investment bank, this transaction was not made because of some obstacles. Mohamed Omran, EGX Chairman, cancelled the transactions on the shares nearly daily because of the unjustified risings.

    EGX cancelled transactions on company’s stocks according to the article no. 21 of the Capital Market Law No. 95 of 1992 which stipulates that: “The chairman of stock exchange may suspend trading offers and bids aiming at price manipulation. He may revoke transactions which violate laws, provisions, regulations and decrees related to their implementation, or which have been carried out with unreasonable prices.

    He may also suspend the trading of a given security in case its continuing transaction causes harm to the market or to participants in the market.

    The Chairman of the Authority may take any of the preceding actions at due time.”

    Atef ElSherif

    Legislative reform necessary to improve business environment: former EGX head

  • September 19, 2016

    ElSherif said that the state is diligently seeking to attract foreign direct investment with the aim of increasing growth rates and creating jobs, which requires real reform in all the economic sectors. He noted that many laws and legislations associated with investment are in need of amendments, including facilitations and incentives, besides clear rules for the process of allocating lands to investors.

    ElSherif mentioned a number of laws that need to be amended, such as the Investment Law, the laws regulating land allocation, the bankruptcy law, the rules of exiting the market, the capital market law, and the mechanisms of settling disputes between the state and investors.

    He hopes that reform extends to the state’s administrative body in order to reduce bureaucracy and to fight against corruption through working on the publication and localisation of e-government, applying decentralisation systems in the local administration and giving power to governors to make decisions on the establishment of projects and the allocation of land.

    He explained the importance of having a clear investment strategy that determines available investment opportunities, areas with facilities and land allocation mechanisms. This strategy should include fairness in distributing investments among all governorates, particularly in the regions that face an increase in poverty and unemployment.

    He said that foreign investors are looking for a good and clear investment climate characterised by stability and transparency in dealing, tax policies, and economic stability.

    He called on the government to study the experiences of neighbouring countries for how to attract foreign investment, such as Jordan, the United Arab Emirates (UAE) and Morocco.

    ElSherif pointed out the importance of accelerating reforms in order to cope with the economic crisis the country is going through which requires urgent solutions, most importantly rationalising government spending.

    It is necessary to coordinate between ministries to speed up achievements, in addition to offering real incentives and facilitations to support the sectors of agriculture and industry in order to increase exports and limit importing, leading to an increase in the country’s foreign exchange income, according to ElSherif.

    ElSherif demanded coordination between the Ministry of Finance and the Central Bank of Egypt (CBE) in applying monetary and financial policies in a way that suits the economic changes the country witnesses. this includes the deformities of the exchange price, limiting borrowing, and reducing the budget deficit.

    ElSherif warned against the slowdown of applying these reforms, noting that the country does not have time anymore because of the worsening economic crisis and its clear impact on all segments of society.

    The impacts of the crisis include the high prices, the low production levels and the lack of available foreign exchange. They are all issues that reveal the social unrest that could aggravate if no fast solutions were reached.

    Sameh El Torgman & Mohamed Omran

    EFSA postpones hearing Beltone’s grievance

  • July 20, 2016

    The Egyptian Financial Supervisory Authority “EFSA” postpones hearing grievance of Beltone Financial Holding regarding the cancellation of its stock transactions due to illness of the grievances committee’s chief.

    Sherif Samy – EFSA Chairman – said “No date was set for hearing the grievance.”

    Yesterday, it was supposed that the first session to hear the grievance that filed to “EFSA” regarding the cancellation of stock transactions of Beltone Financial Holding would have held.

    Atef ElSherif – Board Chairman of ElSherif Law Firm & Consultants – said “Hearing grievance of Beltone Financial Holding regarding the cancellation of its stock transactions due to illness of the grievances committee’s chief.”

    He also added “Hearing session will be scheduled within a few days.”

    Mohamed Omran - Chairman of The Egyptian Exchange – cancelled all transactions on Beltone Financial Holding stocks after a 9.8% rise in the company’s share price which exceeds the price limits to reach 8.64 L.E.

    Atef ElSherif – Beltone legal consultant – filed two lawsuits against the “EGX” & “EFSA” because of the repeated cancellations of transactions of the company’s shares.

    The company’s share price sharply rose after submitting an offer for an acquisition CI Capital Investment Bank which is not made.

    EGX cancelled transactions on company’s stocks according to the article no. 21 of the Capital Market Law No. 95 of 1992 which stipulates that: “The chairman of stock exchange may suspend trading offers and bids aiming at price manipulation. He may revoke transactions which violate laws, provisions, regulations and decrees related to their implementation, or which have been carried out with unreasonable prices.”

    ElSherif warned against the slowdown of applying these reforms, noting that the country does not have time anymore because of the worsening economic crisis and its clear impact on all segments of society.

    The impacts of the crisis include the high prices, the low production levels, and the lack of available foreign exchange. They are all issues that reveal the social unrest that could aggravate if no fast solutions were reached.

    Atef ElSherif

    EFSA asks four companies to study the fair value reports before September, 27 2016

  • August 21, 2016

    ElSherif: implementing the resolution with retroactive effect violates the constitution rules…the companies have the right to complaint and to appeal before the judiciary.

    EFSA asks four companies to submit a study for the fair value of its shares as to be the first implementation for the amendments made by EFSA to the listing and delisting rules.

    The amendments include the addition of an article no.34 bis which stipulates that: “EFSA has the right to ask the companies that its shares are listed in the stock exchange to submit a study for the fair value in case there is a significant price change in one trend by more than 50% within a period of three months or by more than 75% within a period of 6 months which does not fit with market indices or the sector that the company belongs to or companies’ findings and if there is fundamental news justifies that change.”

    EFSA demanded the four companies to submit a fair value study after a price rising of the companies’ shares by more than 75 within 6 months and these companies are Beltone Financial Holding, Egypt South Africa for Telecommunication, Arab Development & Real Estate Investment Co, and the International Company for Medical Industries.

    The demands include a study of trading price change for the four companies during the period from February 11 until August 11 and an authorization to one of the listed independent financial consultants in EFSA’s records to prepare a fair value study before September 27, 2016.

    Share price of Beltone Financial Holding rose from L.E 4.5 to L.E 9.47 by 110%.

    In non-banking financial services sector, share price of Hermis Financial Group rose – in the same period – from L.E 6, 49 to L.E 13, 10 by 102%.

    On the other side, Share price of the International Company for Medical Industries rose from L.E 0.65 to L.E 1.95 by 200% and the share price of the Egypt South Africa for Telecommunication rose from L.E 0.44 to L.E 0.97 by 120% and the share price of Arab Development & Real Estate Investment Co. rose by 67%.

    Dr. Atef ElSherif, Managing Partner of ElSherif Law Firm & Consultants, said that the amendments of listing and delisting rules will not implement on the rising of these companies’ share price as these prices rose last February and if these amendments are implemented, it will have a retroactive effect and that violates the Egyptian constitution rules.

    He also mentioned that the article no. 225 of the Egyptian constitution which stipulates that: “Provisions of the laws shall only apply from the date of their entry into force. However, in

    articles pertaining to non-criminal and non-tax-related matters, the contrary may be provided for in the law, upon approval by a majority of two thirds of the members of House of Representatives.”

    He also added that the four companies have the right to challenge the decision before the Egyptian administrative court but first they must file the grievance before EFSA without waiting for reply of EFSA.

    ElSherif noted that binding companies to submit fair value studies for its share prices that rose does not exist in the capital markets. In the capital market, there is a free movement of share prices, considering stock exchange and capital market rules are absent.

    Dr. Awad El Tersawy, Legal Consultant of EG-Finance Association, said that the implementation of resolution of EFSA does not include a retroactive effect and he also added

    that any law has two sides one of them is an applicable side and the other side is revealing side that extends to periods prior to the resolution.

    El Tersawy also said that penalties for manipulation of stock exchange that are imposed in the Egyptian law is not deterrent until now because it’s not exceeding 20 million pounds and also he said that there are capital markets which similar to the Egyptian capital market legislates deterrent penalties for example Kuwaiti law imposes a penalty for manipulation which is a fine that not less than threefold of the benefits are gained as well as, there is a mechanism for a specific performance. In KSA, last week, a manipulator declared insolvent after being convicted of market manipulation. In Dubai, the penalty is a fine that not less than twofold of the benefits gained.

    Atef ElSherif

    “ElSherif”: Rejection of Beltone grievance did not affect on the conduct of the case

  • August 4, 2016

    Atef ElSherif, Managing Partner of ElSherif Law Firm & Consultants, Beltone Financial Holding, commented on EFSA Rejection of Beltone grievance about Beltone company shareholders regarding the repeated cancellations of transactions of the company’s shares for frequent days by the EGX administration and he also said:”it did not affect on the conduct of the case.”

    He also added that the first circuit court of administrative judiciary of state council adjourned the lawsuit that was filed by Beltone Financial Holding and the shareholders against EGX & EFSA to next September 4.

    Atef ElSherif

    “ElSherif”: Acceptance or rejection of Beltone grievance by EFSA will not stop lawsuit’s procedures against EFSA Chairman

  • July 12, 2016

    Atef ElSherif, Managing Partner of ElSherif Law Firm & Consultants, said that the grievance which was filed by Beltone to the grievance committee of EFSA - regarding the repeated cancellations of transactions of the company’s shares - that will be heard on next July 20, its results will have no effect whether this grievance will be accepted or rejected on the two lawsuits that were filed by the company against EGX & EFSA.

    ElSherif also added to “ElBosla” that the grievance was heard in EFSA building by a committee formed of 5 members, headed by vice president of the state council, membership of two state council judges, one of the principal employees of EFSA and person will be chosen by the minister.

    Atef ElSherif

    Legislative reform necessary to improve business environment: former EGX head

  • September 19, 2016

    ElSherif said that the state is diligently seeking to attract foreign direct investment with the aim of increasing growth rates and creating jobs, which requires real reform in all the economic sectors. He noted that many laws and legislations associated with investment are in need of amendments, including facilitations and incentives, besides clear rules for the process of allocating lands to investors.

    ElSherif mentioned a number of laws that need to be amended, such as the Investment Law, the laws regulating land allocation, the bankruptcy law, the rules of exiting the market, the capital market law, and the mechanisms of settling disputes between the state and investors.

    He hopes that reform extends to the state’s administrative body in order to reduce bureaucracy and to fight against corruption through working on the publication and localisation of e-government, applying decentralisation systems in the local administration and giving power to governors to make decisions on the establishment of projects and the allocation of land.

    He explained the importance of having a clear investment strategy that determines available investment opportunities, areas with facilities and land allocation mechanisms. This strategy should include fairness in distributing investments among all governorates, particularly in the regions that face an increase in poverty and unemployment.

    He said that foreign investors are looking for a good and clear investment climate characterised by stability and transparency in dealing, tax policies, and economic stability.

    He called on the government to study the experiences of neighbouring countries for how to attract foreign investment, such as Jordan, the United Arab Emirates (UAE) and Morocco.

    ElSherif pointed out the importance of accelerating reforms in order to cope with the economic crisis the country is going through which requires urgent solutions, most importantly rationalising government spending.

    It is necessary to coordinate between ministries to speed up achievements, in addition to offering real incentives and facilitations to support the sectors of agriculture and industry in order to increase exports and limit importing, leading to an increase in the country’s foreign exchange income, according to ElSherif.

    ElSherif demanded coordination between the Ministry of Finance and the Central Bank of Egypt (CBE) in applying monetary and financial policies in a way that suits the economic changes the country witnesses. This includes the deformities of the exchange price, limiting borrowing, and reducing the budget deficit.

    ElSherif warned against the slowdown of applying these reforms, noting that the country does not have time anymore because of the worsening economic crisis and its clear impact on all segments of society.

    The impacts of the crisis include the high prices, the low production levels, and the lack of available foreign exchange. They are all issues that reveal the social unrest that could aggravate if no fast solutions were reached.

    Sameh El Torgman & Mohamed Omran

    EFSA postpones hearing Beltone’s grievance

  • July 20, 2016

    The Egyptian Financial Supervisory Authority “EFSA” postpones hearing grievance of Beltone Financial Holding regarding the cancellation of its stock transactions due to illness of the grievances committee’s chief.

    Sherif Samy – EFSA Chairman – said “No date was set for hearing the grievance.”

    Yesterday, it was supposed that the first session to hear the grievance that filed to “EFSA” regarding the cancellation of stock transactions of Beltone Financial Holding would have held.

    Atef ElSherif – Board Chairman of ElSherif Law Firm & Consultants – said “Hearing grievance of Beltone Financial Holding regarding the cancellation of its stock transactions due to illness of the grievances committee’s chief.”

    He also added “Hearing session will be scheduled within a few days.”

    Mohamed Omran - Chairman of The Egyptian Exchange – cancelled all transactions on Beltone Financial Holding stocks after a 9.8% rise in the company’s share price which exceeds the price limits to reach 8.64 L.E.

    Atef ElSherif – Beltone legal consultant – filed two lawsuits against the “EGX” & “EFSA” because of the repeated cancellations of transactions of the company’s shares.

    The company’s share price sharply rose after submitting an offer for an acquisition CI Capital Investment Bank which is not made.

    EGX cancelled transactions on company’s stocks according to the article no. 21 of the Capital Market Law No. 95 of 1992 which stipulates that: “The chairman of stock exchange may suspend trading offers and bids aiming at price manipulation. He may revoke transactions which violate laws, provisions, regulations and decrees related to their implementation, or which have been carried out with unreasonable prices.”

    Atef ElSherif

    Legislative reform necessary to improve business environment: former EGX head

  • September 19, 2016

    ElSherif said that the state is diligently seeking to attract foreign direct investment with the aim of increasing growth rates and creating jobs, which requires real reform in all the economic sectors. He noted that many laws and legislations associated with investment are in need of amendments, including facilitations and incentives, besides clear rules for the process of allocating lands to investors.

    ElSherif mentioned a number of laws that need to be amended, such as the Investment Law, the laws regulating land allocation, the bankruptcy law, the rules of exiting the market, the capital market law, and the mechanisms of settling disputes between the state and investors.

    He hopes that reform extends to the state’s administrative body in order to reduce bureaucracy and to fight against corruption through working on the publication and localisation of e-government, applying decentralisation systems in the local administration and giving power to governors to make decisions on the establishment of projects and the allocation of land.

    He explained the importance of having a clear investment strategy that determines available investment opportunities, areas with facilities and land allocation mechanisms. This strategy should include fairness in distributing investments among all governorates, particularly in the regions that face an increase in poverty and unemployment.

    He said that foreign investors are looking for a good and clear investment climate characterised by stability and transparency in dealing, tax policies, and economic stability.

    He called on the government to study the experiences of neighbouring countries for how to attract foreign investment, such as Jordan, the United Arab Emirates (UAE) and Morocco.

    ElSherif pointed out the importance of accelerating reforms in order to cope with the economic crisis the country is going through which requires urgent solutions, most importantly rationalising government spending.

    It is necessary to coordinate between ministries to speed up achievements, in addition to offering real incentives and facilitations to support the sectors of agriculture and industry in order to increase exports and limit importing, leading to an increase in the country’s foreign exchange income, according to ElSherif.

    ElSherif demanded coordination between the Ministry of Finance and the Central Bank of Egypt (CBE) in applying monetary and financial policies in a way that suits the economic changes the country witnesses. This includes the deformities of the exchange price, limiting borrowing, and reducing the budget deficit.

    Sameh El Torgman & Mohamed Omran

    “EFSA” postpones hearing Beltone’s grievance

  • July 20, 2016

    The Egyptian Financial Supervisory Authority “EFSA” postpones hearing grievance of Beltone Financial Holding regarding the cancellation of its stock transactions due to illness of the grievances committee’s chief.

    Sherif Samy – EFSA Chairman – said “No date was set for hearing the grievance.”

    Yesterday, it was supposed that the first session to hear the grievance that filed to “EFSA” regarding the cancellation of stock transactions of Beltone Financial Holding would have held.

    Atef ElSherif – Board Chairman of ElSherif Law Firm & Consultants – said “Hearing grievance of Beltone Financial Holding regarding the cancellation of its stock transactions due to illness of the grievances committee’s chief.”

    He also added “Hearing session will be scheduled within a few days.”

    Mohamed Omran - Chairman of The Egyptian Exchange – cancelled all transactions on Beltone Financial Holding stocks after a 9.8% rise in the company’s share price which exceeds the price limits to reach 8.64 L.E.

    Atef ElSherif – Beltone legal consultant – filed two lawsuits against the “EGX” & “EFSA” because of the repeated cancellations of transactions of the company’s shares.

    The company’s share price sharply rose after submitting an offer for an acquisition CI Capital Investment Bank which is not made.

    EGX cancelled transactions on company’s stocks according to the article no. 21 of the Capital Market Law No. 95 of 1992 which stipulates that: “The chairman of stock exchange may suspend trading offers and bids aiming at price manipulation. He may revoke transactions which violate laws, provisions, regulations and decrees related to their implementation, or which have been carried out with unreasonable prices.”

    Beltone Financial Holding

    Next Wednesday, FRA shall hear Beltone’s grievance against EGX Chairman

  • July 12, 2016

    The grievance committee of FRA has set next Wednesday, July 20, as the date of hearing the grievance filed by Beltone Financial Holding regarding the repeated cancellation of the company shares’ transactions.

    Atef ElSherif, Managing Partner of ElSherif Law Firm & Consultants, said that the resolution of Beltone’s board was passed in response to the grievances filed by the investors before the company regarding the repeated cancellation of transactions of company’s shares.

    Beltone Financial Holding filed two lawsuits against EGX & FRA because of the repeated cancellation of transactions of company’s shares since last February till now.

    ElSherif, Attorney of Beltone Financial Holding, said that the reason for filing two lawsuits against FRA & EGX that the company was materially influenced by declining the market value because of the repeated cancellations also its reputation was morally influenced in a negative way by spreading rumours that there were manipulations which affected the confidence of the Egyptian & foreign shareholders and dealers that led to a reduction of the transactions nationally and internationally and also the capability of the company to increase its capital by subscription.

    ElSherif shall seek material and moral compensation for the damages incurred by the company and also demanded for the nullification of the EGX resolution regarding the repeated cancellations of transactions of the company’s shares as it had the grounds for nullification which are; violation of law, lack of reason and abuse of power and also the nullification of FRA’s negative resolution.

    Beltone Financial Holding took these measures to protect their small shareholders and its reputation as there is no clear reason for the cancellation.

    It’s worth mentioning that Dr. Mohamed Omran, EGX chairman, issued many resolutions regarding the repeated cancellation of transactions of the company’s shares during February, Mars, April, and May 2016 in addition the EGX cancelled the transactions of the company’s shares made at a price higher than closing price of the previous sessions without cancelling the remaining transactions.

    EGX cancelled transactions of company’s shares according to the article no.21 of the Capital Market Law No. 95 of 1992 which stipulates that, “the chairman of stock exchange may suspend trading offers and bids aiming at price manipulations he may revoke transactions which violates laws, provisions, regulations and decrees related to their implementation or which have been carried out with unreasonable prices.”

    Beltone Financial Holding

    Former EGX Chairman sued the Present EGX Chairman for canceling Beltone transactions

  • June 26, 2016

    Dr. Atef ElSherif, Former EGX Chairman, filed two lawsuits against the Present EGX Chairman, Dr. Mohammed Omran and EFSA Chairman, Sherif Samy, due to the repeated cancellations of share transactions of Beltone Financial Holding company’s shares which owned by the businessman Naguib Sawiris.

    The first lawsuit which was filed by Dr. Atef ElSherif on behalf of Beltone at the Administrative Court, numbered by 58364, where the second lawsuit, that filed by the former EGX Chairman as being one of Belton shareholders, numbered by 59346. The first hearing of the two lawsuits was scheduled to be at the first week of July.

    It is worth mentioning that the cancellation of the stock transactions regarding Beltone shares, the share price dropped from 21.97 pounds in mid-April to reach 7.34 pounds in today's session. The businessman Naguib Sawiris acquired Beltone Holding last November, which considers one of the largest financial institutions in Egypt.

    Atef ElSherif

    Former Chairman of the Egyptian Exchange issued a book about role of small-sized enterprises in supporting the development

  • February 2, 2016

    The Former Chairman of the Egyptian Exchange Dr.Atef ElSherif issued a new book about the role of small & medium-sized enterprises in supporting the economic development, the book presents a detailed review about the challenges that face the most important sector in the economy and the role of the governmental institutions and the banking system in supporting of this kind of enterprises. ElSherif affirmed in his book – which is published at the Cairo International Book Fair – that the Small & Medium-sized Enterprises’ sector in Egypt became the most capable of creating many job opportunities to the youth and combating the unemployment. The Former Chairman of the Egyptian Exchange described the small & medium-sized enterprises as the gold that gets out of minds because of the ability of this type of enterprises to comprehend all the ideas of the creative Egyptian youth and convert them into facts which is useful to the economy.

    The book includes five parts which are as follows: 1- Characteristics and features of small & medium-sized enterprises. 2- Success basics for the owners of such enterprises. 3- Legal forms of such enterprises in Egypt. 4-Required marketing mechanism. 5- Management of such enterprises. The book shows the most prominent success stories which are written in the small & medium-sized enterprises field and these enterprises are transformed later into great economic entities and are converted from the informal economy to the formal economy.

    Small & Medium-sized Enterprises book

    Former Chairman of the Egyptian Exchange issued a book about converting dreams of small and medium-sized enterprises into fact

  • February 2, 2016

    The Former Chairman of the Egyptian Exchange Dr.Atef ElSherif issued a new book about the role of small & medium-sized enterprises in supporting the economic development, the book presents a detailed review about the challenges that face the most important sector in the economy and the role of the governmental institutions and the banking system in supporting of this kind of enterprises. ElSherif affirmed in his book – which is published at the Cairo International Book Fair – that the Small & Medium-sized Enterprises’ sector in Egypt becomes the most capable of creating many job opportunities to the youth and combating the unemployment. The Former Chairman of the Egyptian Exchange described the small & medium-sized enterprises as the gold that gets out of minds because of the ability of this type of enterprises to comprehend all the ideas of the creative Egyptian youth and convert them into a fact which is useful to the economy.

    The book includes five parts which are as follows: 1- Characteristics and features of small & medium-sized enterprises. 2- Success basics for the owners of such enterprises. 3- Legal forms of such enterprises in Egypt. 4-Required marketing mechanism. 5- Management of such enterprises. The book shows the most prominent success stories which are written in the small & medium-sized enterprises field and these enterprises are transformed later into great economic entities and are converted from the informal economy to the formal economy.

    Small & Medium-sized Enterprises book

    A book issued by the Former Chairman of the Egyptian Exchange about supporting of small-sized enterprises to the economy

  • February 2, 2016

    The Former Chairman of the Egyptian Exchange Dr.Atef ElSherif issued a new book about the role of small & medium-sized enterprises in supporting the economic development, the book presents a detailed review about the challenges that face the most important sector in the economy and the role of the governmental institutions and the banking system in supporting of this kind of enterprises. ElSherif affirmed in his book – which is published at the Cairo International Book Fair – that the Small & Medium-sized Enterprises’ sector in Egypt becomes the most capable of creating many job opportunities to the youth and combating the unemployment. The Former Chairman of the Egyptian Exchange described the small & medium-sized enterprises as the gold that gets out of minds because of the ability of this type of enterprises to comprehend all the ideas of the creative Egyptian youth and convert them into a fact which is useful to the economy.

    The book includes five parts which are as follows: 1- Characteristics and features of small & medium-sized enterprises. 2- Success basics for the owners of such enterprises. 3- Legal forms of such enterprises in Egypt. 4-Required marketing mechanism. 5-Management of such enterprises. The book shows the most prominent success stories which are written in the small & medium-sized enterprises field and these enterprises are transformed later into great economic entities and are converted from the informal economy to the formal economy.

    Seminar about signature of the book named “Small and Medium-sized Enterprises” at Cairo International Book Fair

    Former Chairman of the Egyptian Exchange issued a book about the role of “Small-sized Enterprises” in supporting the development

  • February 1, 2016

    The Former Chairman of the Egyptian Exchange Dr.Atef ElSherif issued a new book about the role of small & medium-sized enterprises in supporting the economic development, the book presents a detailed review about the challenges that face the most important sector in the economy and the role of the governmental institutions and the banking system in supporting of this kind of enterprises. ElSherif affirmed in his book – which is published at the Cairo International Book Fair – that the Small & Medium-sized Enterprises’ sector in Egypt becomes the most capable of creating many job opportunities to the youth and combating the unemployment. The Former Chairman of the Egyptian Exchange described the small & medium-sized enterprises as the gold that gets out of minds because of the ability of this type of enterprises to comprehend all thoughts of the creative Egyptian youth and convert them into a fact which is useful to the economy.

    The book includes five parts which are as follows: 1- Characteristics and features of small & medium-sized enterprises. 2- Success basics for the owners of such enterprises. 3- Legal forms of such enterprises in Egypt. 4-Required marketing mechanism. 5- Management of such enterprises. The book shows the most prominent success stories which are written in the small & medium-sized enterprises field and these enterprises are transformed later into great economic entities and are converted from the informal economy to the formal economy.

    Atef ElSherif

    “Small and medium-sized enterprises” inserted in a book by the former chairman of the Egyptian Exchange

  • February 1, 2016

    “The gold extracted from minds always exceeds the gold extracted from earth … There is no fixed price for ideas”.

    These words are said by Atef ElSherif - The Former Chairman of the Egyptian Exchange – describing the leading ideas in his book concerning “the Small & Medium-sized Enterprises” which is issued recently.

    ElSherif shows in his book the most prominent success stories which are written about the small -sized enterprises which are transformed later into great economic entities titled “Bab El Hawadeet (Stories Door)”.

    The book includes five parts which are as follows: 1- Characteristics and features of small & medium-sized enterprises. 2- Success basics for the owners of such enterprises. 3- Legal forms of such enterprises in Egypt. 4-Required marketing mechanism. 5- Management of such enterprises.

    ElSherif did not forget to mention funding sources of such enterprises and the obstacles which hinder such enterprises and the role of the governmental institutions, banking sector and the social fund in succeeding the system and supporting it. ElSherif ended his book “Small & Medium-sized Enterprises” talking about a prescription for solving small-sized enterprises’ problems in Egypt, the reasons of their failure and converting such enterprises from the informal economy to the formal economy and using the electronic trade.

    Small & Medium-sized Enterprises book

    Former Chairman of the Egyptian Exchange: Small-sized Enterprises “Gold gets out of minds”

  • February 1, 2016

    The Former Chairman of the Egyptian Exchange Dr.Atef ElSherif issued a new book about the role of small & medium-sized enterprises in supporting the economic development, the book presents a detailed review about the challenges that face the most important sector in the economy and the role of the governmental institutions and the banking system in supporting of this kind of enterprises. ElSherif affirmed in his book – which is published at the Cairo International Book Fair – that the Small & Medium-sized Enterprises’ sector in Egypt becomes the most capable of creating many job opportunities to the youth and combating the unemployment. The Former Chairman of the Egyptian Exchange described the small & medium-sized enterprises as the gold that gets out of minds because of the ability of this type of enterprises to comprehend all thoughts of the creative Egyptian youth and convert them into facts that could benefit the economy.

    The book includes five parts which are as follows: 1- Characteristics and features of small & medium-sized enterprises. 2- Success basics of the owners of such enterprises. 3- Legal forms of such enterprises in Egypt. 4-Required marketing mechanism. 5- Management of such enterprises. The book shows the most prominent success stories which are written about the small & medium-sized enterprises field, where these enterprises are transformed later into great economic entities and are converted from the informal economy to the formal economy.

    Egyptian Exchange

    Former Chairman of the Egyptian Exchange issued a book about role of small and medium-sized enterprises

  • February 1, 2016

    The Former Chairman of the Egyptian Exchange Dr.Atef ElSherif issued a new book about the role of small & medium-sized enterprises in supporting the economic development, the book presents a detailed review about the challenges that face the most important sector in the economy and the role of the governmental institutions and the banking system in supporting of this kind of enterprises. ElSherif affirmed in his book – which is published at the Cairo International Book Fair – that the Small & Medium-sized Enterprises’ sector in Egypt becomes the most capable of creating many job opportunities to the youth and combating the unemployment. The Former Chairman of the Egyptian Exchange described the small & medium-sized enterprises as the gold that gets out of minds because of the ability of this type of enterprises to comprehend all thoughts of the creative Egyptian youth and convert them into a fact which is useful to the economy.

    The book includes five parts which are as follows: 1- Characteristics and features of small & medium-sized enterprises. 2- Success basics for the owners of such enterprises. 3- Legal forms of such enterprises in Egypt. 4-Required marketing mechanism. 5- Management of such enterprises. The book shows the most prominent success stories which are written in the small & medium-sized enterprises field and these enterprises are transformed later into great economic entities and are converted from the informal economy to the formal economy.

    Atef ElSherif

    ElSherif establishes consulting and law firm

  • September 6, 2015

    Former chairman of the Egyptian Stock Exchange (EGX) Atef ElSherif, established a company for consultations and Legal services, after his resignation from the EGX at the end of last month.

    ElSherif began working last week in consultancy and the legal field in relation to financial services and investment, on the local and international levels, after establishing the firm and after forming a highly experienced working team, including external expertise within the firm.

    ElSherif worked in the legal field before joining the legal administration of the EGX in the early ‘90s. He undertook leadership positions at the EXG, until he was appointed as its chairman, and then as a consultant to its chairman.

    He also represented the EGX in events inside and outside Egypt. He participated in preparing several regulations and legislations related to stock markets inside and outside Egypt, in addition to his efficient participation in establishing the Damascus Securities Exchange.

    Besides his expertise in the legal field, arbitration, and the stock market, ElSherif acquired specialized certificates, and a master’s degree in the field of his profession. Moreover, he is preparing to present and defend his PhD in the Faculty of Commerce soon.

    Atef ElSherif

    ElSherif establishes consulting and law firm

  • September 5, 2015

    Former chairman of the Egyptian Stock Exchange (EGX) Atef ElSherif, established a company for consultations and Legal services. , after his resignation from the EGX at the end of last month.

    ElSherif began working last week in consultancy and the legal field in relation to financial services and investment, on the local and international levels, after establishing the firm and formation of a highly experienced working team, including external expertise within the firm.

    ElSherif worked in the legal field before joining the legal administration of the EGX in the early ‘90s. He undertook leadership positions at the EXG, until he was appointed as its chairman, and then consultant to its chairman.

    He also represented the EGX in events inside Egypt and abroad. He participated in preparing several regulations and legislations related to stock markets inside Egypt and abroad, in addition to his efficient participation in establishing the Damascus Securities Exchange.

    Besides his expertise in the legal field, arbitration, and the stock market, ElSherif acquired specialized certificates, and a master’s degree in the field of his profession. Moreover, he is preparing to present and defend his PhD in the Faculty of Commerce soon.

    Conflict between Bulls & Bears book

    Atef ElSherif issued a book about history of the Egyptian Exchange and its role in economic development

  • January 29, 2015

    Dr.Atef ElSherif - The Former Chairman of the Egyptian Exchange - issued a book titled “Stock Exchange: Conflict between Bulls & Bears” that includes history of the Egyptian Exchange since its establishment in 1883 until now and the role of the Egyptian Exchange in supporting the economic development and funding the enterprises.

    The book– which is titled “Stock Exchange: Conflict between Bulls & Bears”– includes five parts and includes also history of the stock markets internationally and regionally. Youm7 has received courtesy copy from the writer .

    The first part – which is titled “El Awda Ela El Amam(Back to the Front)” – includes the most famous sale transaction of Suez Canal securities in Egypt.

    The second part includes the inception and history of the Egyptian Exchange and its evolution titled “Gomhoreyt El Borsa El Masrya(Republic of Egyptian Exchange)”. The third and fourth parts include the technical part of the Egyptian Exchange such as transactions, indices, standards, procedures and rules.

    The final part includes explanation of how to be “Borsagy(Dealer in the stock market)” by providing basics, advices and detailed answers for the most famous questions in the stock market.

    The book aimed to support knowledge about the Egyptian Exchange to all market parties especially small investors and the low-experienced dealers in the stock market, it includes studies and theories on technical and financial analysis and it includes also a simple analytical educational vision that enables the investor to face the daily problems and obstacles.

    The book helps those who think to enter into the stock market world to start a safe and good inception, and who are already in the stock market world to realize the right path of investment that achieves the maximum return and it talks about the best trade strategies that guarantee achievement of investment goals.

    Small & Medium-sized Enterprises book

    Economic News: Former Chairman of the Egyptian Exchange issued a book about role of “Small-sized Enterprises” in supporting the development

    Week Secrets: The Former Chairman of the Egyptian Exchange Dr.Atef ElSherif issued a new book about the role of small & medium-sized enterprises in supporting the economic development, the book presents a detailed review about the challenges that face the most important sector in the economy and the role of the governmental institutions and the banking system in supporting of this kind of enterprises.

    ElSherif affirmed in his book – which is published at the Cairo International Book Fair – that the Small & Medium-sized Enterprises’ sector in Egypt becomes the most capable of creating many job opportunities to the youth and combating the unemployment. The Former Chairman of the Egyptian Exchange described the small & medium-sized enterprises as the gold that gets out of minds because of the ability of this type of enterprises to comprehend all the ideas of the creative Egyptian youth and convert them into facts which is useful to the economy.

    The book includes five parts which are as follows: 1- Characteristics and features of small & medium-sized enterprises. 2- Success basics for the owners of such enterprises. 3- Legal forms of such enterprises in Egypt. 4-Required marketing mechanism. 5- Management of such enterprises.

    The book shows the most prominent success stories which are written in the small & medium-sized enterprises field and these enterprises are transformed later into great economic entities and are converted from the informal economy to the formal economy.

    Atef ElSherif, Mohamed Omran & Osama Saleh

    Atef ElSherif & Ashraf Kamal are appointed as consultants of the chairman of the Egyptian Exchange.

  • September 4, 2013

    The Board of directors of the Egyptian Exchange approved on appointing both Mr. Atef ElSherif & Mr. Ashraf Kamal as consultants of the chairman of the Egyptian Exchange and thanked them on their efforts which made during the last period in administrating the Egyptian Exchange affairs. Minister of Investment Osama Saleh lionized ElSherif & Kamal after ending of the board of directors meeting on Tuesday.

    Ashraf Kamal, Atef ElSherif & Yehia Hamed

    The Minister of Investment discusses transactions situations with the new chairman of the Egyptian Exchange and his deputy.

  • June 27, 2013

    Minister of Investment Yehia Hamed met with Atef ElSherif – the new former of the Egyptian Exchange – and his deputy Ashraf Kamal to check on exchanging securities over this week and to discuss methods of stimulation and preservation of trading movement during the coming days.

    Seminar about signature of the book named “Small and Medium-sized Enterprises” at Cairo International Book Fair

    “Small and medium-sized enterprises” inserted in a book by the former chairman of the Egyptian Exchange.

    “The extracted gold from minds always exceeds the extracted gold from earth … There is no fixed price for ideas”.These words are said by Atef ElSherif - The Former Chairman of the Egyptian Exchange – describing the leading thoughts in his book “Small & Medium-sized Enterprises” which is issued recently.