boiman
27-10-2008, 06:38 PM
The State Securities Commission (SSC) on Oct. 23
warned HCM City and Hanoi bourses about companies illegally selling
stocks to the public.
According to Circular No. 2113/UBCK-TT, some
enterprises were selling shares when they did not meet basic conditions
as stipulated by the Law on Securities.
According to the Law on Securities, that came into
effect on January 1, 2007, firms with charter capital below 10 billion
VND (606,000 USD) are not eligible to sell securities to the public.
However, since the law was launched, many small-sized
businesses have continued to sell securities to the public in
contravention of the law.
The SSC has sent a list of violators to relevant State
bodies to monitor and deal with the violations in line with the powers
of each agency.
These agencies include the Ministry of Planning and
Investment, provincial and municipal People’s Committees, and the
Department of Planning and Investment.
The SSC’s announcement, published on its website, was
also to inform shareholders of the violators to ensure their interests
under the rules of the Enterprise Law.
The SSC warned that HCM City and Hanoi exchanges must
carefully consider registration documents of these companies to ensure
that they qualify to list on the bourse.
“The enterprises must bear full responsibility for
issuing securities illegally as well as any complaints of shareholders
involved,” the SSC said.
warned HCM City and Hanoi bourses about companies illegally selling
stocks to the public.
According to Circular No. 2113/UBCK-TT, some
enterprises were selling shares when they did not meet basic conditions
as stipulated by the Law on Securities.
According to the Law on Securities, that came into
effect on January 1, 2007, firms with charter capital below 10 billion
VND (606,000 USD) are not eligible to sell securities to the public.
However, since the law was launched, many small-sized
businesses have continued to sell securities to the public in
contravention of the law.
The SSC has sent a list of violators to relevant State
bodies to monitor and deal with the violations in line with the powers
of each agency.
These agencies include the Ministry of Planning and
Investment, provincial and municipal People’s Committees, and the
Department of Planning and Investment.
The SSC’s announcement, published on its website, was
also to inform shareholders of the violators to ensure their interests
under the rules of the Enterprise Law.
The SSC warned that HCM City and Hanoi exchanges must
carefully consider registration documents of these companies to ensure
that they qualify to list on the bourse.
“The enterprises must bear full responsibility for
issuing securities illegally as well as any complaints of shareholders
involved,” the SSC said.