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Close watch on hooks of unlisted public companies
Securities companies must turn in a final list of the unlisted firms they are managing along with shareholder books to the State Securities Commission by May 15, said the commission in the latest document released on preparation for UPCoM.
UPCoM is the market for public companies where unlisted shares are traded through a concentrated technical system.
The market, built under a model of controlled OTC market, is set to open in mid-June.
The review of shareholder books from securities firms by the State Securities Commission (SSC) would help ensure the market have high-quality goods, said Nguyen Vu Quang Trung, Deputy Director of the Ha Noi Securities Trading Centre, the sole manager of the market.
The public companies listed on UPCoM must have well-managed books supported by securities Firms. This would help protect their shareholders during the transaction and lead to transparency in the market, Trung said.
According to the document, securities companies who are permitted to join transactions in the UPCoM market must have compatible technical systems, human resources, products and services before the trial run in June.
"Estimates show that the central system can manage transactions for 500 to 1,000 enterprises without a floor. Then we will need one or two weeks for the trial run, to make sure that the technical system works well, before putting UPCoM into permanent operation," Trung said.
Recently, the commission informed investors about the trading regulations for this market, which will allow them to have settlements in three days, like transactions on the official bourse.
It takes five days for unlisted firms to get approval to trade shares on UPCoM. Orders containing errors will be deleted from the system, not sent on to technical support to fix the problem as in the official market.
The Government has already approved raising the foreign ownership cap for unlisted firms from 30 to 49 per cent, except for the banking system, which is considered a stimulus for UPCoM's transactions.
However, enterprises seem to be hesitating about joining the bourse, mainly because of strict market regulations which mean enterprises must take longer to prepare for trading, according to securities analysts.
Meanwhile, Quang Trung, Ha Noi Centre Deputy Director, said that the hesitation came from a lack of understanding about the securities market, disclosure and even the management of shareholder books.
"Previously, we planned to bring about 10 enterprises, mainly commercial banks and securities firms, into this market. However, now the old preferential list doesn't apply as the market situation changed a lot," Trung said.
The centre was conducting talks with public firms to persuade them to join UPCoM, he said. "We still plan to bring 10 to 15 enterprises onto UPCoM in the early phases and the sources may come from the recent OTC market as the enterprises there have a good management of shareholder-books", Trung said.
vietnamnet, vietnamplus
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