Min menu

Pages

Latest News [LastPost]

All you need to know about allowing young people from 16 to 21 years to invest in the stock market



The Financial Supervisory Authority issued a decision allowing for the first time young people from the age group of 16 to 21 years to invest in the Egyptian Stock Exchange, within the limits of the money that comes as a fruit for his work and is intended to be money that he earns as a result of his professionalism in a specific work, profession or industry, as well as within the limits of money The one who receives it for the purposes of his expense, and publishes "The Seventh Day" questions and answers about the decision of the financial control and its importance.


Q- First of all, can young people invest in the Egyptian Stock Exchange?

C- Before the Financial Supervisory Authority’s decision, young people under the age of 21 could not apply to invest in the Egyptian Stock Exchange except from the father (your guardian), and in the absence of the father, it is submitted by the grandfather to the father (not to the mother) or your guardian, regardless of his relationship with you, but after a decision The last Financial Supervision Authority allows young people from the age group of 16 to 21 years to apply for coding in the stock exchange.

 

The coding means that the customer's data is recorded in the customer database on the Egyptian Stock Exchange, and the coding is done through a brokerage company chosen by the client.


Q- Why did the Financial Supervision Authority decide to allow young people to invest in the stock exchange?

C- The decision of the Financial Supervision Authority came within the framework of the Authority’s role in spreading financial culture and achieving financial inclusion and its keenness to provide non-banking financial services to all segments of society, including young people from the age group from 16 to 21 years, in a way that leads to strengthening the culture of saving and investment in this category and contributes to In facilitating them and improving their standard of living, which leads to an acceleration of the pace of economic development in light of the State's interest in this age group of young people and its keenness to provide them with all services, including non-banking financial services.


Q- Is it legally permissible for young people of this age group to invest in the stock exchange?

C- The Financial Supervision Authority confirmed that there are articles in civil and guardianship laws over money, and the (new) draft Personal Status Law currently being prepared that grants the right of youth of both sexes in the age group (from 16 to 21 years) to deal with non-banking financial activities and products. These include insurance documents, medium, small and micro finance, financial leasing, consumer finance, as well as dealing in the stock exchange, all within the limits of the money that comes as a fruit for his work and is intended to be the money that he earns as a result of his professionalization of a specific work, profession or industry, as well as within the limits of the money he receives for the purposes of his expense, In addition to taking into account the right of those who have reached eighteen years of age and who has been authorized (by his guardian or the court) or to receive these funds by virtue of the law to manage his money in accordance with the legal controls established in Law 119 of 1952, and that non-banking financial products are commensurate with their requirements and the freshness of their experiences.


Q- What are the incentives and limitations set by the Financial Supervision Authority to motivate young people to invest in the stock exchange?

C- The Financial Supervision Authority was keen to motivate companies to design financial products for young people by exempting entities and their dealers from young people in exchange for services that they charge for non-banking financial products that target these groups, but it stipulated that financial institutions inform young people about the advantages of the product and guide them in the best ways. In order to benefit from the non-banking financial product, reduce the risks of its use, and be alert to the effects of breaching their obligations with the directive to issue a guide for these products, in addition to the guarantees required to cover the risks within the limits of funding or a percentage of it and not to be exaggerated in a way that may lead to the inability of young people to provide them or their reluctance About financing due to the difficult conditions.


Q- How many new investors are there in the Stock Exchange?

C- The number of new investors on the Egyptian Stock Exchange increased, during the year 2020, to 28,000 new investors, distributed among 24,907 new Egyptian investors, 643 Arab investors, and 1,337 foreign investors, with a total of 26.9 thousand natural investors, and for legal persons, it was distributed between 424 Egyptians, 107 Arabs and 424 As for the new investment funds, they were distributed between 6 Egyptian and 2 Arab funds and 391 foreigners, with a total of 399 investment funds.


Q- Are there decisions from the stock exchange to simplify the coding procedures?

A- Yes, the Stock Exchange has previously taken a decision to update the procedures governing the amendment of the names of registered clients (coded persons) in the customer database, whether from natural or legal persons, based on a study prepared by the Egyptian Stock Exchange that concluded that the system currently followed in amending the data of dealers' codes (the so-called Re-encoding) This resulted in the existence of old codes for the same clients that were suspended for sale and purchase, some of which still have balances, in addition to long periods of proof of transferring the ownership of securities' balances between the old code and the new code.

 

The stock exchange management decided to amend and simplify the procedures for amending the names of clients wishing to amend their account names on the same unified code for the client in the stock exchange "Unified Code" instead of the previous procedure that included re-registering a new unified code for the client, then waiting for the client to submit a request to prove what he owns of securities balances The new unified code instead of the old unified code and suspension of the old account.

reaction:
Tucson Company Inc
Tucson Company Inc
Tucson Company Inc It is one of the best Egyptian companies specialized in the field of creating and developing Android applications and games, selling them to others, and publishing them through all the services of publishing free and paid applications and games

Comments