Vietnam Expects 23 Securities Firms by Year-end
Vietnam’s State Securities Commission (SSC) has received nine applications asking for permission to set up new securities companies to share the market with the current 14 operational ones.
Among applicants, SSC has granted license to only Dai Viet Securities Co. and given approval in principle to seven others, including the Danang, Vietnam-Direct, Au Lac, Vietnam, Sacombank, Kim Long and An Binh securities companies.
Another one has just submitted their document for consideration, a SSC official said.
Adding to 14 securities companies set up in the last six years, Vietnam is expected to have total 23 companies trading in this sector by the end of this year.
Experts said that investors are under pressure to quickly obtain operating licenses before January 1, 2007 when the Law on Securities comes into effect and they must have legal capital three times higher than now to set up securities companies.
Under the current regulations, companies must have VND3 billion to provide securities brokerage services, while they must have VND10 billion after January 1, 2007.
They now must have VND22 billion to be allowed to act as the guarantor for securities issuance, while they must have at least VND70 billion in the new year.
Thus, a company must have at least VND43 billion to provide all five services, while the new regulations stipulate that at least VND140 billion is required to do so.
Vietnam Economic Times, Youth
Vietnamese
