Take strong action against businesses that are slow to list on the stock exchange

There will be a solution to force equitized companies to be listed on Upcom, even if they are not public companies.

This is the latest information from the Ministry of Finance in the face of the reality that many enterprises have been equitized but for many reasons are still delaying registration for trading and listing on the stock exchange.

More specifically, the analysis shows that: forcing enterprises to go to UpCoM, even if they are not public companies, shows the Ministry of Finance's desire that equitization must be closely linked to listing. Because if they do not register as public companies, do not go to the stock exchange, including UPCoM, the equitization process of enterprises will not bring much meaning due to the lack of transparency in financial activities and lack of responsibility to shareholders.

The application of sanctions by the State Securities Commission will encourage enterprises to list on the stock exchange after equitization, thereby increasing new sources of goods for the market.

However, does the Ministry of Finance really need to issue a new regulation to force businesses to register for trading on UpCoM (even if they are not public companies) while not yet fully utilizing the existing tools of the law?

Decree 145/2016/ND-CP clearly stipulates that the act of not registering for trading or listing securities or registering for trading or listing securities in violation of regulations will be fined from 10 to 30 million VND at least if delayed by 1 month, and from 300 to 400 million VND at most if delayed by more than 1 year. For the act of not offering securities to the public and trading on the organized market within 1 year from the end of the offering period, the fine will be from 100 to 150 million VND.

When there are sanctions but businesses are still slow to list, there are two reasons. One is that the sanctions are not strong enough, and the other is that the implementation of the sanctions is not strict enough. Both of these points are the responsibility of the management agency. If the fine is too low to be a deterrent, it should be proposed to be revised. If the implementation is not strict enough, it must be reviewed.

Therefore, management agencies should only propose new solutions when existing regulations have been fully and seriously implemented but are still ineffective, in order to avoid unnecessary disruptions to businesses and the market.

According to Tien Phong Newspaper