Financial control allows young national ID card holders starting from 15 years to invest in securities listed on the stock exchange

EFSA’s Board of Directors, chaired by Dr. Mohamed Farid, issued Resolution No. 286 of 2024 amending EFSA’s Board of Directors Resolution No. 23 of 2021 on the controls of youth dealing in securities listed on the Egyptian Stock Exchange; encouraging young people to invest more of their money through secure financial channels in amounts commensurate with current economic conditions.
The decision allowed young people who hold a national ID card at the age of 15 and have not reached the age of 21, instead of the current 16 years, to deal in securities listed on the Egyptian Stock Exchange, within the limits of the money that comes as a result of their work, as well as within the limits of the money they receive for their maintenance purposes, in addition to the right of those who have reached the age of eighteen and have been authorized by his guardian or the court or received these funds by law to manage his money, all in accordance with the legal controls prescribed in the Civil Code and the state law on money.
The authority’s Board of Directors has determined that the dealing portfolio of one client of the indicated age group should not exceed forty thousand Egyptian pounds, instead of 10 thousand Egyptian pounds, provided that this is limited to buying and selling securities listed on the Egyptian Stock Exchange without specialized activities represented in dealing on margin Securities and borrowing securities for the purpose of sale.the authority’s Board of Directors may increase the indicated amount by no more than (10%) annually.
The decision of the EFSA Board of directors comes based on the latest amendment to the Civil Status Law No. 143 of 1994, issued in November 2022, which stipulates that every fifteen-year-old citizen of the Arab Republic of Egypt must apply for a personal verification card from the Civil Registry Department in which he resides within six months from the date of reaching the age.
Thus, the authority has authorized young people who hold a national ID card from the age of 15 and have not reached the age of 21 to deal in securities listed on the Egyptian Stock Exchange, and the dealing portfolio for one client of the indicated age group should not exceed forty thousand Egyptian pounds.
The EFSA Board of Directors also kept the second article of the decision the same, and obliges securities brokerage companies, securities portfolio formation and management companies and investment funds to issue a special guide for the youth category referred to in the first article of this decision. The above-mentioned guide includes, in particular, the advantages of dealing on the Egyptian Stock Exchange, whether for buying and selling directly, forming securities portfolios through licensed companies, or dealing on investment funds ‘ documents.
Decree No. 23 issued in 2021 allows young people in the age group from 16 to 21 years to deal in securities listed on the Egyptian Stock Exchange, within the limits of the money that comes as a result of their work, as well as within the limits of the money they receive for their expenses, in addition to the right of those who have reached the age of eighteen and have been authorized by his guardian or the court or received these funds by law to manage his money, all in accordance with the legal controls prescribed in the Civil Code and the state law on money.
The decision comes in the context of EFSA’s continued efforts to increase the number of beneficiaries of non-banking financial services, to enhance the objectives of financial inclusion and inclusion of young people, to facilitate the requirements of their investment in securities listed on the stock exchange, and in order to raise the degree of awareness and financial culture of young people of different ages to introduce them to non-banking financial activities and the benefits of investing in them.