Arab Finance: The General Authority issued For financial controlheaded by Dr. Muhammad Farid, Circular No. (7) of 2024, regarding controls on the securitization of financial rights arising from practicing non-banking financing activities, or other activities, so that they include securitization activities conducted by and issued by companies in sectors other than the non-banking financial sector. Future financial rights.
Issuing the circular comes as the Authority fulfills its supervisory role over non-banking financial markets, and aims to protect the rights and interests of those dealing in them, provide means and systems, and issue rules that ensure the efficiency of these markets.
In the event of a desire to obtain the Authority’s non-objection to approve the information memorandum or public subscription prospectus for the issuance of securitization bonds against financial rights portfolios transferred from non-banking financing activities or other activities, the Authority obligated securitization companies to provide them with an electronic file containing the data of the required securitization portfolios. Referring it to issue securitization bonds against it, according to the forms prepared for this purpose by the Authority.
Securitization companies are also obligated to submit an electronic file to the Authority, which includes the data of the transferred securitization portfolios and the issues thereof still existing, in accordance with the forms prepared by the Authority in this regard. This is a maximum of one month from the date of issuance of the book on 10/17/2024, so that securitization companies can adjust their situations, so that the Authority’s database includes all existing issues.
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