Following the arrest of FLC Chairman Trinh Van Quyet for alleged market manipulation, the State Securities Commission of Vietnam (SSC), the country’s stock market watchdog, called for investors to stay calm.
| FLC Chairman Trinh Van Quyet. |
“Any investment decision should be based on macro-economic factors and actual business performance of the companies in question,” stated the SSC in a statement.
In the past, administrative fines imposed on the FLC Chairman for making the unreported sales of stocks had caused negative impacts on investors’ sentiment and resulted in market instability.
The SSC said it is fully committed to cooperating with other Government agencies regarding the issue, with the aim of “maintaining discipline and transparency of the stock market.”
The Ministry of Finance (MoF) also informed it is working with the investigators to provide information related to Quyet and other individuals at the FLC Group and its subsidiaries.
“It is of great importance to follow the law and order and any violation should be strictly dealt with depending on its severity,” stated the MoF.
On January 10, Quyet sold 74.8 million shares of FLC but failed to notify the market authorities in advance. The transaction was later annulled by the Ho Chi Minh Stock Exchange (HoSE), a move later the SSC said is unprecedented, but necessary to restore the order and discipline of the market.
This incident prompted investors to sell out FLC shares and others related to Quyet, such as ROS, AMD, KLF, or HAI and resulted in their values plunging to the rock-bottom in several subsequent trading sessions.
Many experts attributed the low liquidity of FLC and other related stocks to the market’s downward trend afterward.
The Ministry of Public Security yesterday [March 29] announced the arrest of Quyet for stock market manipulation and hiding information concerning the case on January 10.
On the same day, the FLC Group released a statement distancing the corporation from Quyet’s action.
In this announcement, FLC said the arrest would not impact or change its strategic visions in core business activities, as well as the lawful rights and benefits of customers, shareholders, and partners.
The Group said Quyet has authorized Vu Dang Hai Yen, vice General Director of FLC, to serve as the acting Chairwoman of the Board of Directors of FLC and as the head of Bamboo Airways.
Quyet, 47, was one of the richest men in Vietnam’s stock market and currently owns over 30% stake at FLC Group, or 215 million shares, along with millions of shares in other subsidiaries such as ROS, ART, BOS, and GAB.
