Riqueza for Financial Consultancy completes companies registration procedures in Misr for Central Clearing, Depository and Registry (MCDR) and centrally keeps their shares in compliance with applicable laws; to prepare them for offering in the stock exchange.

About Central Depository

Misr for Central Clearing, Depository and Registry (MCDR) is a representative office of the State in which traded securities and investors' codes are kept. It is considered as a center for safety and assurance of investors' rights, and a system for settling securities traded in the market.

There are some banks partially offering central depository services for shares and bonds including depositing and saving of stocks and bonds, securities retaining in the case of sale or purchase, collecting coupons on the due date according to the bank client instructions. Banks also offer subscription service in new issuance, the implementation of mortgage or blockage of securities If desired. They also can follow-up and implement Board of Directors decisions in respect of any distributions of free shares, stock trading and sharing, obtaining a certificate of attendance of the General Meeting on behalf of the client, registering partnership under the central depository in Misr for Central Clearing, Depository and Registry (MCDR)

Central depository objectives

• The main objective is to eliminate risks that arise from dealing in stock market such as being damaged or lost or falsified.

• Working on central holding of securities through gradual drafting of traded securities in money market.

• Ease of trading in stock exchange resulting from trading balances and book entries instead of manually trading banknotes.

• Capital turnover due to the completion of transfers at fixed times, and increased liquidity in the market.

• Settlements implementation by applying the principle of delivery versus payment (DVP).

• Cancellation of the cost paid by issuers and saving time and effort required to print instruments for traded capital.

• Establishment of a database of all securities issued and traded in money market in order to be protected.

• Increasing investor confidence in the stock market as a result of following internationally agreed standards in stock exchange.

About Misr for Central Clearing, Depository and Registry (MCDR)

Misr for Central Clearing, Depository and Registry (MCDR) was established under the provisions of Article 130 of the Executive Regulations of Capital Market Act No. 95 of 1992. The main purpose of the company is to implement clearing and settlement for securities transactions in stock exchange; and to apply central depository for securities system. The authorized capital of the company at its establishment was EGP 10,000,000, its issued capital EGP 3,000,000 distributed over 30,000 shares. The nominal value per share is 100 Egyptian pounds.