Equitized businesses face penalty for not listing on stock market

The State Securities Commission of Vietnam (SSC) has sent a document requiring businesses after equitization to list on the stock market as many have not abided by the regulation so far.

A stock exchange in HCMC (Illustrative photo: SGGP)

A stock exchange in HCMC (Illustrative photo: SGGP)

They will face a penalty of up to VND300-400 million according to Decree 145/2016 of the Government for continuing the share listing delay.
According to SSI, the sanction will urge enterprises to start share trading, increase supply for the stock market, boost them to operate transparently and protect legitimate rights and benefits of investors.
In April, the Government publicized the names of 578 businesses who have not listed on the stock market after equitization. Two months later, the Ministry of Finance reviewed the situation and found the number increase by 12 companies to total 730.
The ministry said that the list of these 730 companies will be publicly posted on the Government Portal and the ministry’s website.
Explaining the listing delay, companies said that they had not met norms to list on the stock market. Some said that they were doing relevant procedures.
Still, investors believed that they are afraid of information transparency.

By NHUNG NGUYEN – Translated by Hai Mien

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