Finance ministry to announce over 750 firms delaying listing

Đặng Quyết Tiến, director general of the Ministry of Finance’s Corporate Finance Department,  said a list of 755 enterprises failing to register to list on the stock market after privatisation will be announced soon. — Photo cafef.vn

HÀ NỘI — A list of 755 enterprises failing to register to list on the stock market after privatisation will soon be announced.
The information was released by Đặng Quyết Tiến, director general of the Ministry of Finance’s Corporate Finance Department, during a meeting held on Friday in Hà Nội.
Of the 755 firms, 154 enterprises are newly included in the list. The 747 remaining firms were previously announced in August 2017.
Under Decision 51/2014 issued by the Prime Minister, state-owned companies that were equitised after November 1, 2014 would have only 90 days to register with Việt Nam Securities Depository (VSD) and State Securities Committee (SSC) for trading. Companies that were equitised before that date would have one year to register for trading.
Those found guilty of delays in registering as a public limited company within a year of their initial public offering (IPO), will be fined.
However, investors think the fines are only warnings, and want protection of their investments by reducing the time span during which companies must register their stocks with the VSD and the SSC after an IPO.
Quyết said the equitisitation process of State-owned enterprises facilitated the development of the capital market.
Firms who delay listing on the stock market would worsen their corporate governance, which could lead to collapses after equitisation, Quyết said.
Equitisation associated with listing would help businesses improve governance, increase transparency and make the market healthier, he said.
Lê Công Điền, director of SSC’s Public Enterprises Supervisory Department, said listing on the stock market would bring many benefits for enterprises, such as easier capital mobilisation, corporate image promotion and increased liquidity.
The legal regulations and related procedures had also been greatly simplified, creating favourable conditions for post-equitisation State-owned firms to be listed, Điền said.
It was necessary to provide legal guidance for companies to fulfil the listing process, Điền said.
State agencies would impose sanctions on those firms who fail to register to list in time, he said. — VNS

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