ID :
24302
Tue, 10/14/2008 - 14:28
Auther :
Shortlink :
http://m.oananews.org//node/24302
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SSC submits draft rules for securities companies
Hanoi (VNA) - The State Securities Commission (SSC) is planning new regulations and decrees on criteria and terms for setting up securities companies, according to SSC Chairman Vu Bang.
Bang said that mergers, acquisitions and bankruptcy were considered, under
the development of a market economy, tools to help securities firms run
effectively.
The Vietnam Association of Securities Businesses (VASB) General Security,
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 300
billion VND (18.2 million USD), 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 percent stake in
the company, among them financial group shareholders must provide a minimum
30 percent 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.-Enditem
Bang said that mergers, acquisitions and bankruptcy were considered, under
the development of a market economy, tools to help securities firms run
effectively.
The Vietnam Association of Securities Businesses (VASB) General Security,
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 300
billion VND (18.2 million USD), 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 percent stake in
the company, among them financial group shareholders must provide a minimum
30 percent 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.-Enditem
