|25 February, 2019

Beltone Financial's suspension on underwriting lifted

Egypt's financial regulator in November suspended the unit from carrying out any activity for six months over its role in the initial public offering of Sarwa Capital

A trader works at the Egyptian stock exchange in Cairo, Egypt, December 3, 2015.

A trader works at the Egyptian stock exchange in Cairo, Egypt, December 3, 2015.

REUTERS/Mohamed Abd El Ghany

CAIRO - Egypt's Financial Regulatory Authority (FRA) on Monday lifted a suspension on Beltone Financial Holding  conducting underwriting, sending Beltone shares up almost 9 percent.

The FRA in November suspended Beltone's underwriting operations for six months over its role in the initial public offering of Sarwa Capital, whose shares fell by around 15 percent soon after their debut on Oct. 15.

Beltone paid a settlement of 16 million Egyptian pounds ($914,800) to end the suspension, a regulatory source familiar with the matter told Reuters.

The FRA said Beltone's underwriting unit would be allowed to resume operations on Monday and reduced the period that a fee would be imposed on the company's securities division to six months from one year.

Market sources told Reuters on Monday that Beltone has reconciled with and compensated customers who filed complaints with the financial regulator.

Beltone, which is controlled by billionaire businessman Naguib Sawiris through his company Orascom Investment Holding, could not be reached for immediate comment.

($1 = 17.4900 Egyptian pounds)

(Reporting by Ehab Farouk; writing by Nadine Awadalla; editing by Louise Heavens and Jason Neely) ((Nadine.Awadalla@thomsonreuters.com;))

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