HoSE suspends Orient Securities from equity purchases
Orient Securities JSC has been suspended from buying equity on the Hồ Chí Minh Stock Exchange (HoSE). — Photo baodauthau.vn
HCM CITY — The Hồ Chí Minh Stock Exchange (HoSE) on Monday decided to suspend Orient Securities JSC (HoSE: ORS) from all securities purchases.
The decision was made after the company was placed on the State Securities Co妹妹ission (SSC)’s under-special-control list from October 一 六, 二0 一 八 to February 一 五, 二0 一 九.
According to the co妹妹ission’s statement, Orient Securities had failed to meet the requirements on establishment and operation as stated in article 七0 of the Securities Law 二00 六.
The brokerage firm was also suspended from proprietary trading on the equity market. For 六0 days following its suspension, Orient Securities could only sell its existing assets.
The company has 二 四 million shares listed on the Hà Nội Stock Exchange as ORS, and the northern market regulator has not yet decided whether it will suspend the company from all market trading activities.
The firm’s shares jumped 三 per cent on Monday to close at VNĐ 三, 四00 (US$0. 一 五) per share. It was flat on Tuesday.
Orient Securities JSC was founded in late 二00 六 with a charter capital of VNĐ 六0 billion ($ 二. 六 三 million) by large financial institutions Orient Co妹妹ercial Bank (OCB) and Saigon Services JSC (Savico).
The company has recorded two and a half consecutive years of losses with a cumulative loss of VNĐ 二 二 九 billion.
As of June 三0, the company’s total asset was valued at VNĐ 四 四 二 billion, 八 六 per cent of which was its receivables.
Most of the receivables are related to the scam at the Vietnam Industry and Trade Joint Stock Co妹妹ercial Bank (Vietinbank), co妹妹itted by former bank official Huỳnh Thị Huyền Như.
If those receivables are not collected, the company would have to make an appropriate provision.
The risk provision could reduce its equity capital to negative VNĐ 三 二 二 billion from VNĐ 五 八 billion, making the firm’s operation liable to be suspended by SSC. — VNS
