On the occasion the Hanoi Securities Trading Centre (HASTC) course on information provision, Vietnam Business Forum interviewed Mr. Nguyen Vu Quang Trung, Deputy Director of HASTC, on this matter.
At present, the information provision of listed firms is made by their chairmen and general directors. Do you think this method is effective?
Under the current rule, each listed organisation must authorize one information officer to answer investors’ requests. However, in Vietnam, the responsibility is assigned to the management board chairperson or the general director, who are always very busy. Hence, investors feel hesitant to contact information officers when they want to verify information
Thus, we recommend listed and public companies invest more in information announcement divisions to form a communicative culture with investors. Investors can use any communication tools like email, telephone and fax to verify information before making investment decisions. In addition, companies should deputise chief accountants, office chiefs or other representatives, not the most important figures. Then, journalists, investors and shareholders will have wide access to information sources.
Information leaks are not unusual at securities transaction centres. What do you think about this?
Companies have the right and duty to announce information even without passing it to the State Securities Commission or securities trading centres. In many cases, information is released without permission from the centres. However, I recommended investors verify information before making investment decisions. Many investors trade on rumours, thinking they are leaked information from companies. Certainly, they incur losses.
So, what measures should be introduced to restrain the above situation?
There are two significant points. Inside trading is happens in all countries and investigations are very difficult. In other countries, authorities usually look into abnormal profits in the accounts of people who have access to inside information. Inside information can be leaked from companies, trading centres and consulting units for listed companies. But, I have never seen any evidence of selling information for money.
To deal with inside trading, well-informed persons as well as shareholders must strictly obey regulations on transaction information announcements. On the other hand, enterprises should release information at the time they send it to securities trading centres.
Quynh Chi
Vietnamese
