Cairo – Mubasher: Beltone Financial Holding on Sunday confirmed that its unit Beltone Securities would continue with its licensed activities, adding that the company's other units were also conducting business as usual.
The announcement comes after the board of the Financial Supervisory Authority (FRA) decided on Thursday to suspend Beltone from covering and promoting initial public offerings (IPOs) for a six-month period.
The Middle East News Agency (MENA) reported, citing unnamed sources as saying that the reason for the suspension was for violations and manipulations in Sarwa Capital's IPO on the Egyptian Exchange (EGX).
Last month, Beltone managed Sarwa Capital's IPO on the EGX. Sarwa was listed on 15 October and shortly after its stock retreated by 15%.
The FRA had fined Beltone by raising the value of the firm's insurance with the FRA to EGP 50 million.
Beltone said previously that it had not violated any regulations, noting that it planned to pursue legal measures to protect its interest as well as those of its shareholders and customers.
The EGX lifted the suspension on Beltone's shares on Sunday following the company's response to the FRA.
On Sunday, Beltone's stock retreated by over 5% due to the row with the FRA.
