Market of unlisted shares to open in June

VNStockNews.com - Basic conditions for the opening of the market of unlisted public companies (UpCOM) have been completed and the market is expected to be operational in June this year, according to the Hanoi Securities Trading Centre (HASTC).

The establishment of UpCom aims to narrow the uncontrolled market and expand the market under State management.

To ensure the market’s stable operation, HASTC has submitted a draft regulation on transaction on the UpCOM market to the State Securities Commission for approval.

There will be no trading floor for the market and all securities companies which are members of HASTC and can conduct distance transactions will be members of the UpCOM market.

By this time, HASTC has successfully connected its remote transaction system to 70 securities companies.

The Prime Minister’s Decision No. 55, which allows foreign investors to hold a maximum of 49 percent of stocks of public companies, has facilitated the establishment and development of the UpCOM market. The decision will officially take effect as of June 1.

HASTC said it plans to have a working session with securities companies and enterprises in May to discuss the creation of commodities for the market.

According to HASTC Deputy Genral Director Nguyen Vu Quang Trung, the main source of commodities for the market will be shares now being traded on the OTC market.

Trung, however, said that many companies still hesitate about joining the market due to a lack of understanding of the stock market and worries about regulations relating to information announcement, financial report and the management of shareholders’ books. (VNA)