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SSC threatens to revoke licences from short companies
The State Securities Commission (SSC) has warned that the securities companies which cannot increase chartered capital to the required levels prior to February 25 will have their licences revoked.
In the latest move, SSC on February 12, 2009 sent dispatch No 177 to all securities companies, urging them to fulfill the procedures on raising chartered capital.
However, the deadline of February 25 has passed, and no licence has been revoked, while there are still many securities companies which have chartered capital levels lower than the stipulated levels.
Thuc Anh, Deputy Head of the Securities Business Division under SSC, said that there were some 55 securities companies established in accordance with decrees 48 and 144 which had very low legal capital levels and needed to raise capital.
Of these companies, 20 have raised capital as required, while the others are following procedures to raise capital or have cut operations.
“We have foreseen that several companies do not have enough capital to carry out any operations, and if they do not have any measures to improve their conditions, they will have to dissolve,” Anh said.
Under the Securities Law and Decree No 14, securities companies must have capital equal to the capital levels stipulated by the law for every kind of operation. If not, they have to stop providing some kinds of services. However, securities companies are finding it hard to mobilise capital to increase chartered capital with the stock market falling.
VietNamNet, TBKTVN
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