HA NOI — A shorter settlement period of two days following the initial share transaction cannot be implemented at this time, Viet Nam Securities Depository Centre general director Phuong Hoang Lan Huong said at a meeting last week.
Huong acknowledged, however, the need to gradually reduce settlement times as a method to increase stock market liquidity.
She said that implementation of the shorter settlement periods had to be delayed due to the poor financial status of securities companies, many of which lacked the capital resources or risk management mechanisms needed to carry out so-called T+2 settlements.
The centre was already helping many brokerages financially bridge themselves over the current T+4 period, she noted.
Huong held open the posibility for buyers to sell their securities on the T+3 date, but only if securities firms settled the transaction prior to 4pm on the T+2 date.
Saigon Securities Inc chairman Nguyen Duy Hung argued that "brokerages need regulations loose enough to boost investment."
If policies hindered investment, brokerages would be discouraged to raise funds, Hung said. — VNS