Securities companies and investors have been on tenterhooks since they heard news that they would have to pay a new fee for the Securities Trading Center (STC) in HCM City.
A recent circular of the Ministry of Finance says stock brokerages are due to pay a fee equivalent to 0.1 % of the total value of a transaction they handle from early next year.
This means securities companies have to cough up one third of the brokerage fees they earn from investors to pay for the STC, the country’s first stock exchange, to maintain its operations.
Meanwhile, investors are required to pay 500 dong for every 100 shares placed in custody at securities companies. This means that if investors puts 10,000 shares at a securities company, they will automatically pay 600,000 dong per -annum regardless of whether. the shares are traded or not.
The circular took the market by surprise as it came out at a time when the stock market’s watchdog is trying to revive bad investor sentiment. Large numbers of investors are walking away from the unattractive stock market.