Vietnam SSC: Few Brokers to Be Established Near Term
The State Securities Commission (SSC)’s Chairman Vu Bang affirmed that few securities companies will be born in the coming months after the market authorities’ efforts to get tough on the establishment of new ones.
“We have refused to receive new establishment documents and restructured old ones,” Bang said.
Under the new regulation issued late 2008, new brokers could only be set up with two institutional founding shareholders, including one as banks, finance firms or insurers holding at least 30 per cent stake, and one legal entity holding 65 per cent stake.
The commission also plans to supervise, restructure and reinforce existing stock brokers to ensure that they can survive in the year full of challenges.
As the end of 2008, the SSC licensed a total of 103 securities firms.
Bang said the SSC will also issue decree on the merge and acquisition, and bankruptcy of securities companies as soon as possible amidst this difficult time. (Vietnam Economic Times)
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