Without-pay securities trading forbidden

VNGOP – The State Securities Commission (SSC) issued Document 557/UBCK on April 7 to ask stock companies to observe regulations on stock transactions.

April 08, 2008 7:07 AM GMT+7

Some stock companies have allowed investors to buy securities without pay

Under the document, all stock companies must strictly obey regulations on checking customer’s transactional security. Accordingly, when selling out their securities, an investor must have a sufficient amount of stocks in their account. And to buy securities, their account balance (in cash) must meet the requirements on transactional security rate.

The SSC rigidly prohibits all stock companies to lend securities which are not in their account and not owned by the investors. The companies are requested to check their operation and tighten their internal supervision in order to enforce the regulations on transaction.

Those above regulations are aimed at putting an end to the situations in which stock companies allow investors to purchase securities without pay.

By Hoàng Phương