The State Securities Commission of Vietnam will inspect six securities companies over doubts that they haven't been following financial safety regulations.
A total of six companies will be under scrutiny from April 23, including Rubber Securities JSC, Vina Securities JSC, Hanoi Securities JSC.
Also on the list are Danang Securities Company, Truong Son Securities Incorporation and Mekong Securities.
According to circular issued by the Ministry of Finance on standard financial practices and measures to handle violations, securities organisations with an available capital ratio of less than 120% will be monitored for up to six months.
If their capital ratio remains at or above 150% for three consecutive months, the monitoring will cease. However, if after six months, the ratio stays under 150%, or if aggregate losses exceed 50% of charter capital, the companies will be suspended from operating.
These companies will have to send financial reports to the State Securities Commission within one week of receiving notice that they have been put on the watch list. The report must contain the reasons for their financial situation and possible solutions.
During the time of probation, the companies will be prohibited from certain activities, such as receiving dividends, giving bonuses for employees, margin trading, extending their networks, or establishing new subsidiaries, real estate speculation.