The limit was issued under Executive Decision No (23) for 2021, following approval from its Board of Directors to set the maximum limit for this age group
Financial inclusion for the country’s youth continues to push forward, as the Financial Regulatory authority (FRA) releases new rules for individuals between 16 and 21 to join the EGX trading scene.
These include a trading limit of maximum LE 10,000 worth of stocks in their portfolios on the Egyptian Exchange (EGX) for those between 16 -21 years old, with those under 21 allowed only to buy and sell without opportunities for margin trading and short selling.
The new rules come as part of the Central Bank of Egypt’s instructions to allow and encourage people under 21 to open bank accounts without the need for parental consent, and provide them with limited banking services.
The limit was issued under Executive Decision No (23) for 2021, following approval from its Board of Directors to set the maximum limit for this age group.
FRA Chairperson Mohamed Omran said that the maximum limit came in light of the statistics presented by the authority’s competent departments that show there are about 383,000 coded dealers who own shares in EGX-listed companies.
Of this number, 337,000 dealers (the equivalent of 88 percent) own portfolios worth LE 3.4 billion, each of a value of LE 10,000.
Omran added that the statistics show 56 percent, or nearly 215,000 dealers, own portfolios of less than LE 5,000 with a total value of LE 263 million, and an average value of LE 1,220 per portfolio.
About two-thirds of the dealers, or 253,000, own portfolios of less than LE 10,000 with a total value of LE 540 million, at an average of LE 2,140 per wallet. On the other hand, statistics show that there are 2,280 legal persons who own about LE 571 billion, an average of LE 250 million per portfolio.
