Securities companies seek to increase their capital

Raising chartered capital proves to be the thing securities companies must do if they want to exist. Under the current regulations, securities companies must have required levels of capital to be eligible to do certain kinds of business. For example, they must have at least 2billion VND to provide securities brokerage services, 12billion VND to do securities trading themselves, and 22billion VND to act as the guarantor for securities issuance. Now several companies cannot guarantee securities issuance due to low capital.

The Securities Law has become effective, and the decree guiding the implementation of the law will be enacted in some days, which will set higher capital requirements on securities companies. The companies will have to have 200billion VND to be eligible to do all kinds of available securities businesses, instead of 43billion VND as currently.

An official from the State Securities Commission said that securities companies would be given more time to increase their capital. If the requirements on minimum capital are effective right from the enactment date, two-thirds of companies would have to shut down.
It is the right time for securities companies to increase their chartered capital. Investors are ready to inject money in securities companies which have been performing well in a fast-growing stock market.

Nguyen Duy Hung, Chairman of SSI, said that the prestigious securities companies which have been operating for a long time will find it easy to increase their capital by issuing more shares. Especially, it will be easier for the three listing securities companies to raise funds from the stock market.

The capital raising will also be not so difficult for newly set up companies, or for companies that have low chartered capital. The stock market in Vietnam is very promising, and investors are ready to make investments in securities companies, especially foreign investors.

Le Dac Son, Director General of VP Bank, which has set up a securities company, asserted that the securities company would meet the capital requirement right when the decree with the stipulation on required capital was enacted.

Biggest securities companies in Vietnam by chartered capital:

Saigon Securities Inc. 500billion VND

Sacombank Securities Co. 300billion VND

ACB Securities Co. 250billion VND

Vietcombank Securities Co. (VCBS) 200billion VND

Source: VNE