Vafi proposes to reduce 75% volume of securities companies
Vietnam Association of Financial Investors (Vafi) has recently offered proposal to stabilize and develop the stock market.
VAFI has proposed to reduce the number of securities companies from 100 down to 25 securities brokers. According VAFI, it should be quick to reduce 75 percent in the number of securities companies to centralize and reorganize the human resources, eliminate the situation of unfair competition and promote the dissolution, consolidation and merger for securities companies.
To accomplish this plan, according to VAFI, the prime minister should issue document requesting securities companies to increase legal capital in accordance with roadmap whereby in 2012 it is 600 billion dong and by 2015 it will be up to 1.2 trillion dong. The aforementioned petition is to easily restructure and attract foreign securities companies.
In addition, the stock exchanges should make equitization and select strategic investors to proceed to merge the Vietnam Securities Depository Centre and the stock exchanges.
Currently, the State Securities Commission (SSC) has proposed to merge Hochiminh Stock Exchange (HoSE) and Hanoi Stock Exchange (HNX) into one stock exchange. The to-be consolidated stock exchange will operate under the state-owned enterprise model.
VAFI said that to build a stock exchange under the international standards, it should be given much higher standards for the parties joining the market such as selecting 25 leading securities firms to engage in services on the stock trading floor and selecting 10 leading auditing companies to participate in services.
VAFI also proposed to open room for foreign investors in unconditional business industries.
The securities firm also ought to eliminate the procedure of applying securities trading codes for foreign investors to use the procedures of registration via Internet with the securities depository centre.
Additionally, VAFI also proposed to separate the deposits of investors from the securities company's account to avoid the status of capital appropriation of investors, review the financial statements on a quarterly basis and eliminate some businesses that are ineligible for listing from the trading floors.
