Foreign Investors in Vietnam Propose to Prevent Share Price Dilution
Some foreign investment institutions have recently proposed the State Securities Commission (SSC), Vietnam’s market watchdog, issue regulations to prevent share price dilution as one of the measures to support the stock market next year.
Foreign analysts made the proposal at a conference on “Stock Market Development” held by the Institute of Financial Science last week.
The SSC should require listed companies to buy back their shares in parallel with reducing their registered capital, not treasury shares as currently.
Listed firms which announced to buy back shares will be strictly penalized if they don’t realize their promises.
Foreigners also suggested the market watchdog limits listed companies from paying dividends by cash and low-profit making firms from paying welfare fund for employees.
These measures are expected to help increase share prices and strengthen investors’ confidence in the market. (Securities Investment)
Vietnamese
