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PM wants urgent clean-up of stock market practices
Prime Minister Nguyen Tan Dung has told ministries, departments, and offices to carry out urgent measures to prevent unhealthy practices from affecting the stock market.
The re-establishment of local and foreign investors’ confidence in the market was important, the PM said.
Under the PM’s direction, the issuing of initial public offerings (IPO) must be registered with the State Securities Commission (SSC). All illegally created IPOs will be suspended and fined.
Businesses that have not registered their trading operations in Viet Nam are not permitted to issue shares in Viet Nam, except in cases involving signed international commitments.
The State Bank of Viet Nam (SBV) will manage the issuance of IPOs to raise capital for commercial joint stock banks and financial services joint-stock companies.
The issuance of securities for insurance companies, securities joint-stock companies, and general businesses will be managed, respectively, by the Ministry of Finance, the SSC and Department of Planning and Investment.
Listed companies must carry out auditing and publish their company information in accordance with the Securities Law and other legal and regulatory documents.
Ban on illegal deals
Organisations or individuals are forbidden from holding illegal securities, PM Dung said in his direction.
Market information on buying or selling shares and published shares prices in the media must follow Government regulations.
The heads of press agencies would be charged with the responsibility of accuracy and transparency of the source of published information, Dung said.
State-owned enterprises are not permitted to use company investment and development funds, or capital construction to use capital in setting up a securities company, or buy shares of securities investment funds.
Using capital of State-owned enterprises to invest in financial or securities markets must not affect the company’s production and trading activities.
The Ministry of Finance will create a monthly plan to ensure balance between supply and demand in the securities market. The flow of investors’ foreign currency will be strictly supervised as well.
VNS
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