27 securities companies shut up shop in 2014

Tuesday, Jan 06, 2015 17:00

Au Viet Securities Company no longer works in the local market. — Photo vietstock.vn

HA NOI (Biz Hub) – The number of securities companies in Viet Nam reduced by more than 20 per cent in 2014, announced the State Securities Commission of Viet Nam (SSC).

Last year, SSC carried out 22 investigations of the local companies, which revealed that 27 companies had stopped operations as they were not qualified to operate. Currently, there are 73 companies working in the market.

The SSC said the reduction in the total number of securities companies was part of its restructuring plan to enhance the quality of local securities companies since 2011, adding the plan was on the right track.

Besides the SSC's restructuring activities, securities companies also restructured themselves by reducing their staff and ending ineffective operations. A number of securities companies are still working, but they have stopped brokerage services, self-trade, issuance guarantee and investment consulting services.

The investigations also showed that the securities companies closed down 28 branches and 41 transaction offices.

Instead, the securities companies paid more attention to risk management, improving their customer services as well as developing information and technology systems, said the SSC.

The commission said that in 2015, it will work with other relevant agencies to develop the accountability standard of securities companies.

It added that despite difficulties, the stability of the local market has grown. As of December 8, the local market's value was VND1,164 trillion (US$54.6 billion), an increase of 90 per cent over the same term last year. — VNS

Comments (0)