wiki globe

Posts Tagged ‘Securities’

Who manages when securities company leaders join market?

In Uncategorized on July 31, 2010 at 7:19 am

When stocks rise, financial leverages have been exerted by not only investors but employees in securities companies as well.

When stocks rise, financial leverages have been exerted by not only investors but employees in securities companies as well

When the stock market enjoy a slight rise, many securities companies allowed investors to buys a stock on high margin, some very important persons can borrow from the companies to buy securities without money or just little in their account.

Those received special treatment are general directors, directors or employees in stock companies.

When the market headed for 600 points in last October, securities company leaders colluded with some VIP to take money from the company to buy many stocks.

They had only VND20billion but they bought a large quantity of stocks worth up to VND170 billion; however, VN-Index plunges to 430 points, the stocks value decreased by over 30 percent, the group decided to keep the stock with the hope that it will increase again.

The market has maintained below 500 points, the stocks are worth around VND100billion. The group lost VND70billion not including interest. At present, the VIP have made their transaction in other companies, leaders are ordered to pay the debt.

Another loophole is that securities companies allow investors to withdraw their profit right after they gain although they have not yet paid their loan.

Above-mentioned investors usually borrowed money from banks on one-year contracts. Investors must settle these contracts which nearly fall due. Securities companies are under high pressure to seek for new sources of capital or sell all these stocks. Massive selling of these stocks will influence to the market in the current market when VN-Index hovered around 490 points.

It is high time that securities companies and the State Securities Commission must implemented practical measures to protect the market.

Source: SGGP

Banks should be prohibited from involvement in securities activities: economists

In Vietnam Banking Finance on January 16, 2010 at 3:08 pm

Commercial banks shouldn’t be allowed to provide loans to securities businesses and invest in stocks, said economists at a seminar on the Bill on Credit Organizations held by the National Assembly Economy Committee on January 15.

They said it is not the bank’s function, and is risky and unsafe for the credit organization system.

The prohibition is to ensure that banks are responsible for depositors, they added.

Investment banks and commercial banks should be fixed clearly since some investment banks have been established from securities firms in Vietnam.

However, commercial banks objected to the prohibition, saying that they should be limited, but not prohibited, in providing loans to stock businesses.

On the same day, at a conference on Vietnamese banks after the global crisis held by the Vietnam Chamber of Commerce and Industry’s branch in Ho Chi Minh City, Dr. Le Dang Doanh said local banks need to enhance their administrative abilities and healthy competitiveness.

Ly Xuan Hai, general director of Asia Commercial Bank, said the bank system has to be “thin” without many levels of management so it can operate quickly and consistently.

Source: SGGP Bookmark & Share

Securities taxes to take effect January 1

In Vietnam Stock Market on December 16, 2009 at 10:41 am

Provisions of the new Law on Personal Income Tax applicable to taxation of dividend income and capital gains on securities trading will take effect on January 1, said Vu Van Truong, director of the Ministry of Finance’s tax policy department.

The new taxes were suspended for all of 2009 as part of the Government’s stimulus package and to help sustain the stock market during the downturn.

Pursuant to the law, investors will have two options for paying the capital gains tax; either a flat 0.1 percent levy on the value of each securities transaction or a 20 percent tax on net capital gains during the tax year.

However, individuals opting to apply the 20 percent rate would still be temporarily charged the 0.1 percent levy on each securities transfer, Truong said.

“Most investors will opt for the 0.1 percent option due to the simple and transparent procedures for paying the tax with each transaction, as well as to avoid tedious and complicated formalities of tax computation and filing returns at the end of the year,” opined An Phat Securities Co general director Tran Thien Ha.

Tan Viet Securities Co deputy director Hoang Xuan Quyen predicted the tax would have little impact on the market as securities companies and investors have been aware it was coming since the end of last year.

Tax on securities trades will be collected by securities companies. Unlisted companies will be responsible for collecting the tax on behalf of their shareholders.

Source: SGGP Bookmark & Share

Securities companies facing tough times

In Uncategorized on October 8, 2008 at 1:26 pm

The Vietnam Association of Securities Business (VASB) reports that 70 to 80 percent of the total 98 securities companies are cutting back operations, reducing the labour force and limiting their activities.

The association attributed the difficulties to poor management and the recent boom of securities companies. High inflation also had an impact, said Nguyen Thanh Ky, general secretary of the VASB.

Ky said that to help securities companies overcome impediments and continue to develop, support from authorised agencies and policy-makers was essential.

VASB requested that the National Assembly and Government temporarily delay levying personal income tax on investors in order to create a stable mid-and-long-term capital mobilisation channel to attract more domestic and foreign investors.

To improve the operation of the securities industry, the Government would need to limit the establishment of new securities companies while strengthening the quality of existing ones, he said.

In response to proposals from the VASB, the chairman of the State Securities Commission (SSC), Tran Thanh Tan, said that authorised agencies had been enhancing inspections on liquidity and risks for securities companies and would further supervise the operation of securities companies.

Tan said stock market transparency must be increased through specific policies and laws.

Authorised agencies needed to conduct their forecasts and warnings in a timely manner and strictly supervise information and transactions released by securities companies, he added.

The Government should also reconsider allowing investors, businesses and individuals to open multiple securities accounts. However, inspection and control should be used to make investor transactions more flexible and help stabilise the market, Tan said.-

Nasdaq OMX helps develop Vietnamese securities market

In Uncategorized on September 24, 2008 at 12:32 pm

Hanoi (VNA) – Nasdaq OMX Group, Inc. of the US will support the development of the Vietnamese securities market under a Memorandum of Understanding (MoU) it signed with the Ho Chi Minh Stock Exchange (HOSE) in New York on Sept. 23.
Nasdaq OMX pledged to share its technology and market experience with HOSE and the Vietnamese capital market as a whole to help increase their capability, infrastructure, and liquidity.

HOSE Chairman Nguyen Doan Hung said that the agreement aims to establish a channel for information exchange in the areas of system operations, regulatory framework, cross-listing and product development. “This is an official and long-term commitment for further cooperation between the two exchanges and the two markets,” Hung said.-

Banks facilitate connection for move of securities accounts

In Uncategorized on September 18, 2008 at 6:05 pm

To facilitate connection for the move of investors’ accounts from securities firms to banks under the Finance Ministry’s decision, many banks have offered solution packages to securities companies.

The Bank for Investment and Development of Vietnam (BIDV) have launched BIDV@Securities solution that enables it to connect to 10 securities companies, namely Bao Viet, Artex, Gia Phat, Euro Capital, Thien Viet, BSC, Ban Viet, Dai Viet, Cho Lon and Dong A.

Meanwhile, MobiVi Securities solution deployed by VPBS and VP Bank allows one securities company to connect to investors’ accounts at different banks of the same system.

The connection solutions aim to speed up the shift of securities accounts to banks before the deadline of Oct. 1.

So far, only 20 out of 80 securities companies have shifted investors’ accounts to banks for management, according to initial statistics.

The slowness is attributed to the incompatibility between the systems of banks and securities companies. Another reason is the lack of specific regulations defining related parties’ responsibilities to investors in case of incidents.

Some experts say securities companies delay the move since they do not want to lose a huge profit earned from investors’ accounts.

At a seminar held in late August in Hanoi, representatives from the Hanoi Stock Trading Centre and the State Securities Commission said that moving investors’ accounts to banks for better management is necessary for the protection of investors’ interests and urged the enforcement of the regulation.

Securities companies which succeeded in connecting to banks said thanks to advanced technology solutions, connection failures rarely happened and if happening, they were solved quickly.

Connection to banks has opened up new investment opportunities and increased the competitive edge of securities companies, they said.-

Thailand’s Seamico Securities eyes Vietnamese market

In Uncategorized on August 4, 2008 at 3:38 pm

– Thailand’s Seamico Securities plans to form a joint venture with a Vietnamese partner to expand business opportunities in Indochina, the company’s Chief Executive Officer said.

Seamico CEO Chaipatr Srivisarvacha said the company was in talks to take up to a 50 percent stake in one of three Vietnamese brokers, according to local media on August 4.

“Despite the sharp declines in share prices in the Vietnamese market, we still see strong growth opportunities in Vietnam,” Chaipatr was quoted by the Bangkok Post as saying.

He said any partner selected by Seamico “must be financially strong and have investments in good assets”, adding that the Bangkok-based company hopes to close a deal by the end of the year.

The company’s market share increased to 4.18 percent at the end of June, while brokerage operations account for around 70 percent of its total revenues.-