Big shareholders and management board members of companies listed on the Hanoi stock exchange will soon be obligated to show more transaction transparency. Under a Hanoi Securities Trading Centre draft statute, each buying or selling announcement of the above so-called VIP shareholders will be valid for only one-month and if the transaction is realised after the deadline, another announcement is required.
According to the Ministry of Finance’s Circular 38/2007/TT-BTC, transactions need only be announced 24 hours from the transaction date and there is no valid transaction time requirement.
As a result, many VIP shareholders took a long time to conduct transactions, causing much hardship for other shareholders who could never know when the transactions were made. At the same time, there is a possibility VIP shareholders would exercise price manipulation. The centre’s officials expect the new regulation will address those concerns.
Besides, quite a few investors complain many listing companies did not make their prospectus widely available until the first trading date. One example was PetroVietnam Tourism and Services Joint Stock Co (PET) which listed on September 13, but had its prospectus appear on the stock exchange’s website the following day.
As not every investor can get a prospectus directly from the listing firm, they rely on the stock exchanges’ information channels. When these two entities announce information slowly, inequality among investors in terms of access to information about a newly-listing firm is inevitable. Many investors, therefore, expect the stock exchanges should publicise sufficient information about a listing business right after granting it a listing licence.
In addition, the State Securities Commission should impose more regulations to improve the quality of listing firms’ prospectuses and announcements on shares auctions, to stop rumours driving Vietnam’s stock markets.