The Financial Supervisory Authority sets 13 obligations for the checking company.. Get to know them

1- To have a headquarters in the Arab Republic of Egypt.

2- It should be independent from the beneficiary or any of its related parties, in a way that does not lead to a conflict of interest.

3- To exercise the care of a prudent man when determining the assets, benefits, rights, or projects that she owns on behalf of the sukuk owners.

4- To provide the Authority with the address of its main office and phone numbers, the names of the members of its board of directors, executive managers and whoever represents it legally before the Authority, and in the event of any change in that information, the company is obligated to notify the Authority of this change within a month at most.

5- It must include the contracts it concludes with others, all publications issued by it, its address, trade name, and the license number issued by the Authority.

6- It should have an accounting system and a documentary cycle that is compatible with the company’s purpose and tasks.

7- To enter into a documented contract or agreement with the beneficiary of the issuance of sukuk.

8- That the issuance contract expressly stipulates the obligations of the sukuk holders, according to which the issuer may be obligated to pay these amounts on behalf of the sukuk holders.

9- To place a restriction in the issuance contract – when transferring the ownership of assets, benefits, or projects from the beneficiary, which includes that those assets, benefits, or projects aim only to issue sukuk, and neither it nor any of the parties to that contractual relationship may dispose of those assets by default. Through sale, mortgage, transfer of ownership or any other form of disposition.

10- To submit to the Authority an acknowledgment of the transfer of ownership of assets, benefits, or projects from the beneficiary to the sukuk company in accordance with the provisions and rules stipulated in the Capital Market Law and its implementing regulations, and that the contract is enforceable, complete, not dependent on a condition, and conveys all rights and guarantees.

11- To appoint a payment agent for it.

12- Not to reissue previously issued sukuk.

13- Not to merge with other companies unless it is a company practicing the same activity and on condition of obtaining the prior approval of the Authority.

It is noteworthy that the sukuk are nominal securities of equal value issued for a specified period not exceeding 30 years, each of which represents a common share in the ownership of assets, benefits, assets, or a specific project or its cash flows, according to what is determined by the public offering prospectus or the information memorandum, as the case may be.

Sukuk is a financial process through which the assets, benefits, or rights of a project subject to financing are acquired, and sukuk is issued in exchange for it. Sukuk in terms of areas of investment of the proceeds of the sukuk, the duration of this investment, its expected returns, the method of distribution, the duties of those parties, the terms of the sukuk, and the possibility of trading and redemption.

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