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OTC market trading band falls
The trading band for the over-the-counter market (OTC) could be 10 percent, rather than the 20 percent originally planned by the Hanoi Securities Trading Centre, when the OTC market comes into operation under the centre’s control.
The Finance Ministry, State Securities Commission, and Hanoi Securities Trading Centre late last year laid out plans for a managed OTC market, aiming to reduce risk for investors and raise the liquidity in this non-official market.
Vu Bang, chairman of the State Securities Commission, said that the tighter trading band in the OTC market was in response to the recent rough period in the official stock market.
Bang also said that the narrow band would help investors enter the OTC market in a stable way even during this difficult period for securities investment.
According to the commission, foreigners could buy a total 40 percent of the charter capital of an unlisted firm on the OTC market. This cap is less than the originally planned 49 percent.
The limitation was higher than the present cap for the official market of 30 percent. This gives foreigners greater opportunities to trade in unlisted shares.
Having no policy to manage the indirect foreign capital, the limitation of a foreign cap for investment in unlisted firms was essential, said Bang.
According to the Hanoi Centre, the major manager of the controlled OTC market, about 11 firms registered to trade on the market, among which eight were banks and the rest were brokerages.
Nguyen Vu Quang Trung, deputy director of Hanoi Centre, said the firms were among 40 candidates selected to trade on the newly-managed market, of which all were already in the financial sectors.
VNA
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