Oct 13 (Reuters) - The Egyptian Financial Regulatory Authority (FRA) said on Sunday it had approved lowering stock exchange trading fees to encourage investment and competitiveness with other regional markets.
The decision will now be sent to the cabinet for final approval, the FRA said in a statement.
The FRA approved cutting trading service fees to 0.005% from 0.00625%, clearing and settlement fees to 0.0100% from 0.0125% and stock market commissions to 0.0100% from 0.0120%.
The cost charged to investors for trading insurance would also fall to 0.005% from 0.010%. Trading service fees on bonds listed on the stock exchange will be reduced to become half the trading service fees on shares following the adjustment.
Other regional stock exchanges have similarly been reducing investor costs. These include the Abu Dhabi Securities Exchange, which reduced commissions by as much as 90% on July 1.
The Egyptian government plans to sell shares in some 23 state-owned companies on the stock exchange, as part of a plan to raise 80 billion Egyptian pounds ($4.93 billion) by selling minority stakes at the local stock market. The programme has been repeatedly delayed, including due to emergeing market turbulence last year. ($1 = 16.2300 Egyptian pounds) (Reporting by Ehab Farouk;Writing by Mahmoud Mourad;Editing by Elaine Hardcastle)