The State Securities Commission of Vietnam (SSC) would not rule out a return of FLC Group (ticker: FLC) and FLC Faros Construction Company (ticker: ROS) to the Ho Chi Minh City Stock Exchange (HoSE), once these firms could fix their issues and submit a request.
| FLC shares are subject to forced delisting. File photo |
Vice Minister of Finance Nguyen Duc Chi gave such information during a Government press briefing on September 6.
In late August, the stock market authorities announced a decision to delist over 567 million ROS stocks from the HoSE, while FLC has also received a warning for a similar fate.
Both have so far failed to comply with the stock exchange regulations, including the release of financial statements on time or holding an annual meeting of shareholders.
FLC owner Trinh Van Quyet himself had been arrested for alleged market manipulation and appropriation of assets by deceit.
Referring to the rights of holders of these stocks, Vice Minister Chi said a forced delisting decision would no doubt impact investors.
“But they should voice their concern at shareholder meetings, and request the board of directors to soon address their shortcomings and protect the rights of investors,” Chi said.
To prevent similar cases in the future, Chi noted the MoF has issued a directive on strengthening supervision activities to ensure the healthy development of the stock market.
According to Chi, the SSC is tasked with coordinating the revision of the Securities Law and other regulations to help protect the lawful rights of investors and businesses and address potential risks to the market.
“The market authority would also be responsible for tightening regulations on corporate bond issuance,” said Chi, expecting the solutions to be submitted to the MoF before September 30.
Chi requested stock exchanges to enhance monitoring of the operation of public firms in the stock market, and thoroughly review applications for stock listing.
“The goal is to ensure the accuracy of the information, especially that of companies with a sudden rise in charted capital, revenue significantly lower compared to the capital, or those recently set up,” Chi added.
Under current regulations, if issuers of to-be-delisted shares still qualify as a public company, they would be required to list on the Unlisted Public Companies Market (UPCoM), which currently has a price range of +/- 15 % instead of 7% as in the HOSE.
Companies with forced delisting shares can only return to the HoSE after at least two years of operating on the UPCoM.
At the close on September 6, all stocks linked to the FLC (tickers: FLC, HAI, KLF, AMD, ART) dropped to their respective price floor as negative information on these shares led to their under sales.
