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Govt' to tighten supervision of public companies
The Government plans to tighten supervision over capital build-up among public companies and to enhance the stock market's stability and safety, said Minister of Finance Ho Duc Phoc.
Phoc said the ministry will conduct a comprehensive review of the process to identify loopholes and potential dangers to businesses and investors.
In addition, the ministry has been working closely with the Ministry of Planning and Investment to review the current regulations on private offerings as stipulated in Viet Nam's Business Law. Findings and recommendations were to be submitted to leaders of the ministries by the end of September.
Meanwhile, the State Securities Commission (SSC) has demanded the Ha Noi Stock Exchange, the Viet Nam Stock Exchange and the HCM City Stock Exchange step up an effort to supervise and manage stock activities.
Phoc said a major objective for Governmental agencies in the years to come is to ensure a fair and transparent playground for the stock market. Agencies have been asked to stay especially vigilant in dealing with new companies, companies reporting significant surges in capital within a short time frame and companies that fail to provide adequate business plans.
He said the ministry planned to conduct a thorough review of accounting and auditing firms, as well as consulting firms in the market. Rule breakers were to be severely penalised, and potentially have their business licences revoked or suspended. The ministry has also been collaborating with the Ministry of Public Security to prosecute a number of individuals involved in alleged scamming activities.
Phoc urged the firms to fully collaborate with his ministry and other governmental agencies and to produce all paperwork related to a number of recent high-profile financial scandals.
The ministry asked the country's major stock exchanges to step up supervision of derivatives market activities and to establish a system to monitor and identify market abnormalities to give early warnings to investors.
He said the ministry's key objective is to support the development of the stock market, enhance financial stability and strengthen the country's legal framework.
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