EGX Chairman Participates in the Organization for Economic Co-operation & Development (OECD) Conference to Promote Corporate Governance in Portugal

Monday, 16 July 2018

Farid: Enhancing disclosure raises the efficiency and competitiveness of capital markets and improves trading and liquidity
EGX Chairman: A new department to improve accounting disclosure and hold periodic meetings between the market participants and officials of the relations of investors
Mohamed Farid, EGX Chairman, participated last week in a conference on “How to strengthen corporate governance” in Portugal organized by the Organization for Economic Co-operation and Development (OECD) to exchange experiences on how to build corporate capacities specifically their governance and transparency issues.
The conference witnessed intense presence of government officials, central bank governors and stock market chairpersons to present their experience in developing and improving disclosure and transparency processes.
EGX Chairman stated that enhancing disclosure and transparency is necessary to increase the efficiency and depth of capital markets, especially in terms of increasing liquidity and trading, and attracting more foreign investment.
Farid added that EGX management is keen to raise the awareness among all listed securities about the best practices in periodical disclosure and material information.
He stressed that the disclosure is the backbone of any capital market because of the important role it plays in reducing risks and sharp fluctuations in stock prices as well as reducing rumors.
Farid said that EGX has worked to improve the disclosure and transparency levels by taking several measures, including the establishment of a new accounting disclosure department to audit the disclosures that the companies submit to notify investors of any deviations. This department has already requested additional disclosures from companies, which guarantees higher transparency for investors.
Farid explained that EGX management regularly organizes workshops between investment relations officials and investment and research managers to improve the flow of information concerning the listed companies to the market participants. This should improve the decision making process, to present detailed information about the companies’ performance and their future plans.
EGX Chairman also revealed that companies are required to update their websites with disclosure information to facilitate the efficient and regular access of information and data to the investors. This process is also monitored to follow the compliance of all listed companies through the electronic disclosure system.