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SSC publishes list of illegal stock sellers
The State Securities Commission (SSC) on Oct. 23 warned HCM City and Hanoi bourses about companies illegally selling stocks to the public.
According to Circular No. 2113/UBCK-TT, some enterprises were selling shares when they did not meet basic conditions as stipulated by the Law on Securities.
According to the Law on Securities, that came into effect on January 1, 2007, firms with charter capital below 10 billion VND (606,000 USD) are not eligible to sell securities to the public.
However, since the law was launched, many small-sized businesses have continued to sell securities to the public in contravention of the law.
The SSC has sent a list of violators to relevant State bodies to monitor and deal with the violations in line with the powers of each agency.
These agencies include the Ministry of Planning and Investment, provincial and municipal People’s Committees, and the Department of Planning and Investment.
The SSC’s announcement, published on its website, was also to inform shareholders of the violators to ensure their interests under the rules of the Enterprise Law.
The SSC warned that HCM City and Hanoi exchanges must carefully consider registration documents of these companies to ensure that they qualify to list on the bourse.
“The enterprises must bear full responsibility for issuing securities illegally as well as any complaints of shareholders involved,” the SSC said.
VNA
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