Vietnam Securities Watchdog to Rate Securities Companies From April 2012

Hung said the year 2012 will mark restructure and consolidation in the industry, the commission will fully apply Circular 226 and current 105 securities companies will be trimmed.

The government has instructed the SSC to prepare proposals for restructuring securities companies and fund management firms, and the Minister of Finance requested to extend to restructuring stock market also, Hung said. Therefore, the SSC is preparing new project which included stock market restructuring and it will be ready to submit to the Prime Minister this December.

The Vietnam Association of Securities Business (VASB) on December 8, 2011 held a meeting to gather market members’ opinion on stock market restructuring draft proposal before it is sent to the Prime Minister.

 Regarding the draft proposal, representative of VietinBank Securities suggested to encourage rather than force securities to separate two blocks: brokerage versus proprietary trading, consulting, and underwriting.  

He also proposed to have regulation on automatic delisting such as how long a listed share is trade under VND5,000/share on the HNX will trigger automatic delisting. He pointed out that over 250 stocks on the HNX are trading under par value (VND10,000/share). The representative believed if the regulation is applied, there will be solutions for supply limitation.

Representative of Morgan Standley Gateway Securities proposed banning buying treasury shares in the ATC session to limit negative impact of the action.