The Grievances Committee of the Egyptian Financial Supervisory Authority (EFSA) will review on 20 July lawsuits filed by Beltone Financial Holding against the Egyptian Exchange (EGX) regarding the frequent cancellation of its stock transactions.
Beltone consultant, Atef El-Sherif, said that the company’s action against the EGX came as a response to complaints received from investors about the repeated cancellation of the company’s stock transactions.
El-Sherif stated that the company’s decision to file two lawsuits against the Egyptian Exchange (EGX) came after company’s decline in revenue following the collapse of its market value. Allegations of manipulation surrounding Beltone caused serious damage to its reputation, which impacted its shareholders, both Egyptian and non-Egyptian.
These claims could lead to a decline in the size of Beltone’s transactions in Egypt and abroad and reduce the company’s ability to raise its capital through initial public offerings (IPO).
Beltone filed two lawsuits against the EGX in response to the repeated cancellations on trades of the company’s shares since February.
Chairperson of the EGX, Mohamed Omran, made several consecutive decisions to cancel transactions of Beltone Financial Holding stocks in February, March, April, and May. In addition to this, the EGX cancelled some sessions of the transactions of Beltone’s stock conducted with prices higher than the closing price of the previous sessions without cancelling the rest of the transactions.
According to the EGX, the procedure comes mainly within its keenness in the interests of small shareholders and the company’s reputation. There is no clear reason for the cancellations.