Stock market violators to face stricter action

"Recent violations in the market have shown that these (current) fines have not been strict enough, requiring a higher level of sanctions and tighter regulations,” said an official. — VNS:VNA

HANOI: The State Securities Commission (SSC) will review the Law on Securities and related decrees to complete the legal framework, and strengthen sanctions for violations to protect the legitimate rights and interests of investors.

“Although the current Law on Securities stipulates a high level of sanctions for violations compared to the common ground, the maximum administrative fine is three billion dong (RM566,433) for organisations and five billion dong (RM944,055) for individuals.

“However, recent violations in the market have shown that these fines have not been strict enough, requiring a higher level of sanctions and tighter regulations,” said Ta Thanh Bình, director of market development department under the SSC.

At a seminar held late last week, Bình said the SSC will step up the improvement of human resources for inspection and supervision; as well as complete and put into use an upgraded transaction monitoring system with analysis, warning and statistical features.

Bình said that SSC and stock exchanges will speed up the commissioning of the KRX trading system, provided by South Korea’s bourse operator, to facilitate the deployment of new products and services on the stock market and ensure the smooth, continuous, safe and effective market operation.

“We are currently in the testing phase with the contractor to officially put the KRX system into operation. It is expected that when the new system is put into operation, it will help regulators as well as market participants deploy new solutions for transactions and payments that investors are looking forward to such as intraday trading, short selling, and shortening payment time,” Bình said.

According to Bình, inflation has started to decrease in some economies such as the United States and European Union, and the roadmap to increase interest rates of central banks in some countries tends to slow down.

As a result, the pressure on exchange rates and domestic interest rates will also gradually decrease.

In fact, deposit and lending interest rates of many commercial banks have been adjusted down in recent weeks.

Domestically, the government’s determination in finding solutions to remove difficulties for the real estate market, stepping up the anti-corruption work, perfecting mechanisms, policies and laws, and reforming administrative procedures, will bring positive impacts to the Vietnamese economy.

It will create a healthy and transparent business environment, and attract the participation of foreign investors, Binh said.

The return of foreign investors also showed that stock valuation was already at a suitable level compared to the strategy of foreign investors.

This would be a positive signal for the Vietnamese economy and the stock market in particular, Binh said.

However, the domestic interest rate level, although showing signs of decreasing, is still at a high level and is likely to remain high at least until the end of the first quarter of 2023.

Liquidity in the market is therefore likely to recover slowly.

The international environment is also forecast to have many difficulties in 2023 when the prospect of slowing economic growth of some major economies will reduce the consumption demand for imported goods of the people of these countries, affecting the performance of Vietnamese exporters.

In order to promote the healthy development of Vietnam’s stock market, it is necessary to diversify its product offerings. — Viet Nam News/ANN

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