VietNamNet Bridge – The State Securities Commission will
consider reducing depository fees by 20 per cent to lessen difficulties for
securities companies and investors.
The Viet Nam Securities
Depository started to collect depository fees in 2010. Accordingly, investors
had to pay 0.5 Vietnamese dong per share or fund certificate every month and
0.2 dong for each bond.
Prior to the decision, brokerages
often supported their clients in paying the depository fees. However, as the
difficulties of the stock market increased, the payments created a significant
burden for securities firms and investors.
In addition, many brokerages
reported that they could not collect the fees from investors and had to pay the
depository centre with their own money.
"Many customer accounts in
our company ran out of funds, as investors did not carry out
transactions," said a Ha Noi-based securities firm leader, who asked to
remain anonymous.
Late last year, Saigon Securities
Inc said it was burdened by over VND14 billion (US$666,700) in fees it owed to
the commission, depository centre and the Viet Nam Association of Securities
Businesses for 2010 and 2011.
Securities firms proposed
reducing depository fees three months ago, saying the measure would help the
stock market overcome challenges.
They also suggested fees apply to
each investor account, rather than each type of security.
Moreover, the current fees were
relatively high, they said, which made them difficult to collect, as many
investors purchased dozens of different stocks. They also recommended
implementing a maximum fee for each account.
The top investors on the stock
market suffered from fees worth billions of dong for their long-term portfolios;
reduced fees would allow them to save considerable amounts.
Chairman of property developer
Hoang Anh Gia Lai (HAG) Doan Nguyen Duc, with 260 million HAG shares, paid the
most, according to the financial information website vietstock.vn. However, if
the policy was applied, he would save VND360 million ($17,100), paying VND1.2
billion ($57,100) per year instead of VND1.56 billion ($74,200).
Owners of shares of property
developer Vingroup (VIC), food processor Masan (MSN) and financial conglomerate
Ocean Group (OGC) would be also able to save millions of dong.
The total savings of the 10
richest investors on the stock market could reach VND1.2 billion.
Source: VNS
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