Wednesday,  Oct 24, 2018,03:17 (GMT+7) 0 0
Banks slow in getting listed
The Saigon Times Daily
Tuesday,  Jan 30, 2018,22:15 (GMT+7)

Banks slow in getting listed

The Saigon Times Daily

HCMC – Many joint stock banks should have listed on the stock market last year as required by the Ministry of Finance, but the plan faced numerous hiccups, Lao Dong newspaper reported.

In particular, 730 equitized enterprises, including 10 banks, should have traded their shares on the bourse last year.

Under the ministry’s Circular 180/2015/TT-BTC guiding registration for securities trading on the market for unlisted companies (UPCoM), within one year after the effective date of the circular (January 1, 2016), public companies and those delisted before the circular came into force have to complete registration for trading on UPCoM.

However, many banks such as Nam A Bank, SCB, Techcombank, Viet Capital Bank, VietBank and SaigonBank have not made a move.

Though some among these have presented to their shareholders plans for trading shares on UPCoM in recent years, most banks are going slow.

According to the news report, of 35 domestic banks, 16 banks have completed their listings, while 15 banks are still having their shares traded on the over-the-counter (OTC) market (excluding the insolvent CBBank, GPBank, OceanBank purchased by the central bank at VND0 and DongA Bank being under special surveillance), and need to get listed this year or next.

Techcombank and TPBank are likely to go on the Hochiminh stock exchange in the year’s first half, OCB possibly in the year’s second half, and Nam A bank, Maritime Bank, VietABank and SeABank within the year.

With only four banks registering for listing last year, VPBank on HOSE and Kienlongbank, LienVietPostBank and VIB on UPCoM, the target to have ten banks listed at the end of 2016 has failed.

According to experts, going public gives investors more options, facilitates banks’ capital mobilization, improves transparency, and promotes a healthy banking system and integration into international financial markets.

The State Securities Commission has recently slapped a fine on VietBank for its tardiness in submitting the listing application in accordance with Decree 108/2013/ND-CP dated September 23, 2013.

Under Decree 145/2016/ND-CP amending Decree 108/2013/ND-CP, public companies are subject to VND30-50 million fines if their listing applications are over 12 months behind schedule.

In case of 24-36 months late, the fines range from VND50 million to VND70 million. And if listing plans are delayed for more than 36 months, companies may be subject to VND70-100 million fines.

A heavy fine of up to VND400 million may be slapped on those not registering for listing and bourse trading, or getting listed 12 months or more after the deadline.

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