Vietnam News Network

Vietnam News: Local, National, Business, Sport, Entertainment and Technology

Trade BTCUSD, Bitcoin and Cryptocurrencies

BUY & SELL BTCUSD | View BTCUSD News & Updates


Buy Sell BTCUSD, Bitcoin and Cryptocurrencies

SSC submits draft rules for securities companies   2008-10-13 - Viet Nam News

The State Securities Commission (SSC) is planning new regulations land decrees on criteria and terms for setting up securities companies, according to SSC Chairman Vu Bang.

The SSC should stop issuing licences for new securities firms as there was only space for only 40-50 such firms in the market.

Bang said that mergers, acquisitions and bankruptcy were considered, under the development of a market economy, tools to help securities firms run effectively.

The Viet Nam Association of Securities Businesses (VASB) General Secretary, Nguyen Thanh Ky, said that the SSC should stop issuing licences for new securities firms as there was only space for only 40-50 such firms in the market.

The SSC submitted an outline of the draft regulations to the Ministry of Finance for approval.

Changes include the provision that new securities companies have at least two organisations as their legal shareholders, of which one has to be the founder of the firm, and the company must operate under the laws of credit organisations, securities and insurance.

The founding shareholder must have a minimum charter capital of VND300 billion (US$ 18.2 million), and must operate their firm for at least five years, with two consecutive years of profit, before establishing a securities firm.

The organisational shareholders must own at least a 65 per cent stake in the company, among them financial group shareholders must provide a minimum 30 percent of charter capital.

The draft rules also state regulations concerning individual investors, who must make bank deposits for three consecutive months to be eligible to purchase a stake in a securities company. If the contribution is in the form of securities, they must be listed at securities trading centres and the investor must prove his financial capacity of at least twice the capital invested.

Foreign experts, however, think that the SSC should allow newly established securities firms develop naturally, instead of limiting investors, as healthy competition is essential to a free market.

According to HCM City Securities Corp General Director, Johan Nyvene, although a large capital allows securities firms to operate better, experience and depth of management were more important.



Other news

VN-Index follows falling global market   2008-10-13

Deputy PM urges acceleration of refinery project   2008-10-13

Hanoi to prioritise agricultural, new-technological products   2008-10-13

100 outstanding entrepreneurs honoured   2008-10-13

Hijacked public spaces vex HCMC apartment residents   2008-10-13

HCMC attracts huge FDI inflows: DPI   2008-10-13

Businesses continue crying over capital   2008-10-13

$57bil of FDI is just registered capital: GSO   2008-10-13

Hanoi has advantages in developing agriculture: official   2008-10-13

Vietnam will filter FDI: MPI   2008-10-13

VN-Index follows falling global market   2008-10-13

SSC submits draft rules for securities companies   2008-10-13

Property market prices cool   2008-10-12

BUSINESS IN BRIEF 12/10   2008-10-12