Chapter (19)

The following entities are eligible to become Participants:

• A bank and any branch of a bank regulated by the Central Bank of Egypt;
• A company that caries on one of the securities activities specified by the board of directors of the Capital Market Authority;
• A domestic or foreign central securities depository, provided that its head office is subject to control pursuant to rules specified by the board of directors of the Capital Market Authority;

Any other entity whose participation is accepted by the members of the board of directors of the company pursuant to the provisions and conditions specified by the Executive Regulations.

Chapter (20)

A Participant shall comply with the rules and standards specified by the regulations, and shall have and maintain at all times:

sufficient financial resources to meet Participant obligations and to cover securities clearing and settlement risks;

1. adequate personnel, technical capabilities, books, records, systems and procedures to carry out its activities as a securities depository and central registry.
2. Entities referred to in article 19 of this Law that do not meet the above criteria may be provided company services through a Participant.

Chapter (21)

Participation in the company shall be available to entities referred to in article 19 of this Law provided they meet the criteria stipulated in article 20. Every Participant shall abide by the rules and procedures of the company.

The company shall treat all Participants equally and fairly, and apply such principles to the fees and expenses it charges and to the provision of its services.

Chapter (22)

A Participant shall execute a written agreement with the company, substantially in the form of the model agreement approved by the Capital Market Authority, provided that Participant is obliged to:

• comply with the rules, systems and procedures of the company and modifications thereto made by the company, once approved by the Capital Market Authority.
• pay the fees and expenses for the services provided by the company, and compensate the company for any violation of the rules, systems and procedures;
• pledge the securities deposited at the company in his name and for its account whenever required by the company to guarantee the fulfillment of his obligations and to authorize the company to borrow money against the securities pledged;
• enable company representative to examine the service books and records of the company and verify their accuracy;
• bide by the decisions of the board of directors of the company concerning its services;
• contribute to the settlement guarantee fund of securities transactions;
• share the loss incurred by the company pursuant to the rules adopted by the board of directors of the company and approved by the Capital Market Authority.

The agreement shall include provisions on the resolution of disputes that may arise between a Participant and the company.

Chapter (23)

Without prejudice to the provisions of article 39 of this law, the board of directors of the company shall adopt all the rules concerning measures to be taken against company Participants in violation of the company’s rules. These rules shall only be valid and enforceable upon their approval by the Capital Market Authority.