Finance Min May Lower OTC Stock Trading Band to 10 per cent
The Ministry of Finance may reduce the stock trading band on the over-the-counter market (OTC) slated to be operational in July to 10 per cent rather than 20 per cent as planned initially by the Hanoi Securities Trading Center, the state media said.
Vu Bang, chairman of the State Securities Commission (SSC), said the tighter trading band in the OTC market is to respond to the recent difficult period in the official stock market.
The narrow trading band will help investors join the OTC market in a stable way, particularly in this difficult period, Bang said, noting that the band may be widened when the market shows positive signals.
Under the new regulation, foreign investors can hold a 40 per cent stake in an unlisted firm on the OTC market, less than the initially-planned 49 per cent. Currently, foreigners can own a 49 per cent stake in listed firms and 30 per cent in listed banks.
With no policy to manage the indirect foreign capital, applying a foreign ownership cap for investment in unlisted firms is very important, Bang noted.
Built by the Ministry of Finance, SSC and HASTC last year, the OTC market to be managed by HASTC aims to reduce risk for investors and raise the liquidity in the black market. The trading system is scheduled to start its operation in this July.
The HASTC announced that 11 public firms registered to trade on the market, including eight banks and three securities companies. (VNA, Securities Investment)
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