HÀ NỘI — Although the current Securities Law includes severe penalties, the number of stock price manipulation cases is increasing, causing great damage to the market and frustration for investors.
According to Nguyễn Hoàng Hải, Vice Chairman of the Việt Nam Association of Financial Investors (VAFI), the recent case of FLC Group’s Chairman Trịnh Văn Quyết arrested for alleged stock manipulation is just one among numerous other violations in the stock market.
“The key problem was that the current management and supervision of the market regulators, as well as the State Securities Commission, has not been effective enough,” Hải told Việt Nam News Agency.
Many countries around the world have a model of a securities commission, whose leaders came from different units within the State agencies. The commission had independent leaders such as the chairman, secretary-general, and permanent members, Hải said.
“However, the current model of Việt Nam’s State Securities Commission is a single-leader model, so decisions on personnel, inspection, supervision, and licensing are made by only one leader. Unlike the other models around the world now, licensing and post-testing processes are made by two different leaders. In my opinion, it is necessary to have reforms at the Việt Nam State Securities Commission,” said Hải.
According to the new Securities Law, the supervision over the stock market has covered three levels, from securities companies, the Stock Exchange to the State Securities Commission.
A representative of the State Securities Commission said that this supervision was a regular and continuous practice, so signs of abnormal trading of stocks were monitored very closely.
The State Securities Commission would conduct unexpected inspections when detecting signs of law violations by organisations and individuals, especially signs of market manipulation, he said.
Stocks with unusual trading movements were always closely supervised by many agencies, across many levels. If detecting signs of violations, the commission would conduct or co-ordinate with functional agencies to inspect and handle violations according to the law, he said.
