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For the first time, the Financial Regulatory Authority in Egypt has authorized non-banking financial companies to establish hedge funds, after a long absence from the local market. This move aims to diversify investment tools and meet the needs of investors, as hedge funds are flexible instruments that invest in a variety of financial assets such as short selling and derivatives, unlike traditional funds that focus solely on stocks and bonds. The issuance of these funds comes following amendments to the executive regulations of the Capital Market Law and the development of the Egyptian financial market, with market trades exceeding 15 billion Egyptian pounds to support the activation of these funds. They are expected to contribute to enhancing the flexibility of the financial market, stimulating the derivatives market, and attracting new segments of both local and foreign investors, while ensuring the protection of investors' rights through clear risk management rules such as leverage limits and liquidation procedures.
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