Viet Nam's stock exchange officially established

Tuesday, Dec 29, 2020 11:04

The Ho Chi Minh Stock Exchange (HoSE) in HCM City - one of the two subsidiaries of the Viet Nam Exchange. — Photo

Prime Minister Nguyen Xuan Phuc has signed a decision to establish the Viet Nam Stock Exchange (Viet Nam Exchange), headquartered in Ha Noi.

Under the decision, the Viet Nam Exchange will operate as a limited liability company with a charter capital of VND3 trillion (US$130 million).

The Viet Nam Exchange will be accountable for its own development strategy and plan for each year and the coming five-year period.

The exchange will also be in charge of developing and issuing regulations on share trading and listing and information disclosure.

Given recent incidents on the stock market that have halted trading on the Ho Chi Minh Stock Exchange, the Viet Nam Exchange is empowered to oversee potential risks that threaten the stability and development of the Vietnamese securities market while making recommendations to resolve the problems.

In addition, the Viet Nam Exchange is held responsible for co-operation between Viet Nam and other countries in terms of securities market issues.

The Ho Chi Minh and Ha Noi stock exchanges will be the two subsidiaries and the Viet Nam Exchange will hold 100 per cent of capital in the two bourses.

The Ha Noi Stock Exchange will take charge of the derivatives market, the Government and corporate bond markets, and other products.

The Ho Chi Minh Stock Exchange is authorised to manage the common stock market and other securities products.

The two bourses are obliged to supervise trading activities and information disclosure of listed companies and invest in technology and product development to meet the market demand.

In addition, the two bourses have to provide warnings and control of the illegal securities and oversee, halt and suspend the trading of some securities in the event of unusual trading activities.

Other missions of the two bourses include the acceptance, change and cancellation of securities, provision of auctions and bidding competitions, reporting of illegal actions on the market and giving advice on possible solutions to solve problems.

The decision will take effect on February 20 next year.

There are a total of nearly 1,660 stocks being listed and traded on the Ho Chi Minh Stock Exchange, the Ha Noi Stock Exchange and the Unlisted Public Company Market (UPCoM). — VNS

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