Vietnam SSC Issues Guidance on M&As of Securities Firms
The State Securities Commission (SSC), Vietnam’s market regulator, has said on its website that it has finished the draft guiding on merger and acquisitions (M&A) of securities companies.
The guidance is essential especially in the current context when a large number of stock brokers suffered losses in 2008 and can not survive in the fierce market.
Under the draft, securities firms are only allowed to carry out M&As when being operation for at least three years. M&As between them is also required to obtain SSC's approval.
Those firms being listed on the stock market must cancel their listings before making M&A deals.
In the process of M&As, they have to ensure the interests and trading operations of customers.
Vietnam now has 103 brokers with total deposited number of 520,000 accounts, SSC reported.
Recently, many securities companies have accepted to narrow business scale as they failed to meet capital requirement under the SSC's regulations. (SSC)
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