Vietnam will strengthen regulating the over-the-counter(OTC) market in order to reduce investor's risks on the market, local newspaper Vietnam News reported Monday.
A draft plan drawn up by the State Securities Commission is expected to be issued later this month. Under the plan, the country will apply a new trading system and create a more professional OTC market, and the Hanoi Securities Trading Center will play a more active role in monitoring the market, said the paper.
According to the new rules, all public companies are required to deposit OTC shares with the Securities Depository Center. Similarly, investors trading in OTC shares will also have to deposit their shares with depository members and place all buy and sell orders through accounts with securities companies. Then these orders will be transferred to the Hanoi stock exchange's transaction system, allowing brokerages to gain access, find buyers and sellers, and make deals for investors.
When OTC transactions are finished, the securities companies will send the trading results to the Hanoi bourse and the depository center in the same day so that the two authorities can balance accounts. Foreign investors will be allowed to acquire up to 30 percent of shares in unlisted public companies, while the limit on foreign ownership in listed companies is 49 percent.
A trial run of new OTC procedures is scheduled in November, according to the newspaper.
Source: Xinhua
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