UpCom market to be opened in June

VNStockNews.com - The market of unlisted public companies (UpCom) is expected to be operational in June 2009, which proves to be welcome news to many.

Tran Van Dung, Director of the Hanoi Securities Trading Centre (HASTC), said that the UpCom market may debut in June 2009.

Dung said that the final draft document, amending Decision No 238 on the foreign ownership ratio in the stock market, has been submitted to the government, adding that he hopes the decision will be signed and promulgated this week or early next week.

Under the current laws, documents are valid 45 days after signed. “Therefore, we hope that the new decision will become valid in early June 2009,” Dung said.

“If everything goes smoothly, the market will be put into operation in mid June,” he added.

The opening of UpCom market aims to help narrow the uncontrolled market and expand the market under the state’s control.

The Hanoi Securities Trading Centre (HASTC) said that it plans to compile and submit to competent agencies a new transaction mechanism to improve liquidity and improve the modern OTC transaction model. The mechanism will be suggested a time after UpCom becomes operational.

HASTC’s representative said that it has well prepared basic conditions for the opening of UpCom (legal framework, software, members and commodities).

HASTC will have a working session with securities companies and enterprises to discuss the creation of commodities for the market.

A preliminary survey by HASTC shows that some 20 enterprises have promised to join the market.

At first, UpCom was hoped to debut in the first quarter of 2009 after the state management agencies announced that a lot of things had been done to prepare for the operation of the market. On November 20, 2008, the Ministry of Finance ratified the regulations on the organisation and transaction management of unlisted securities at HASTC. On November 25, HASTC began a training course on the organisation and operations of UpCom.

In principle, nearly 1,000 public companies, half of which are unlisted, could be sources of commodities for UPCom. However, analysts have pointed out that many companies remain uninterested in joining the market.

The lack of commodities for UPCom has been cited as the biggest reason behind the tardiness in putting UPCom into operation. (DTCK)