Illustrative image (Source: VNA)SSC Chairman Tran Van Dung made the affirmation followingthe arrest of Trinh Van Quyet, Chairman of FLC Group JSC, pending investigationsinto charges of stock market manipulation.
The SSC will continue its close coordination withthe investigation agency to ensure market transparency, he said, asking investorsto keep calm as the market has still remained stable.
The FLC case would exert only short-termand mild impacts on the market as the total value of shares of FLC and its affiliatesmakes up only 0.16 percent and 0.35 percent of the combined market capitalisation, Dung said, citing latest statistics showing positivemacroeconomic indicators and noting that major international institutions havehighly valued Vietnam’s economic growth this year.
Despite pressures on interest rates, the State Bankof Vietnam (SBV) has maintained its stable monetary policy to support thenational economic growth. Moreover, rosy signs have been seen in the operation of enterprises amid the COVID-19 pandemic.
He also pointed to other favourable factors regardingcapital flows in the stock market and the enhanced equitisation and divestment.
According to Dung, after the Ministry of PublicSecurity's Investigation Police Agency decided to launch criminal proceedingsagainst and arrest Quyet for allegedly manipulating the stock market, the SSCimmediately convened a meeting to discuss what should be done in the timeahead.
The commission asked FLC to release relevant informationin line with regulations, and submit reports to the SSC and the Ho Chi MinhCity Stock Exchange (HoSE).
On March 29, the commission announced Quyet’s arreston its website and to press agencies, and asked investors to stay calm and to make investment decisions on the basis of realities.
Apart from solutions to ensure market stability, theSSC will work harder to enhance transparency, discipline and sustainability ofthe market in 2022 and the years to come, he pledged.
The Ministry of Public Security's InvestigationPolice Agency on March 29 decided to launch criminal proceedings against andarrest Quyet.
According tothe investigation agency, Quyet would be charged with “manipulating the stockmarket" in line with Article 211 of the Penal Code.
On January10, Quyet sold 74.8 million FLC shares without any reports and notifications inadvance as stipulated in regulations, triggering public concern and pushing thestock market in chaos.
The SSCimmediately decided to block Quyet’s securities accounts to prevent him fromcommitting other illegal acts, and asked the Ho Chi Minh City Stock Exchange (HoSE) to cancel the transactions ofthe 74.8 million FLC shares. Many investors were refunded.
On January18, the commission issued another decision under which Quyet was fined 1.5 billionVND (65,600 USD), the heaviest penalty in line with regulations, and banned himfrom stock trading activities for five months./.
VNA
