Covered warrants to be officially listed on June 28

Tuesday, 2019-06-25 10:58:35
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SSC Vice Chairman Pham Hong Son (second from left) speaks at the press briefing. (Photo: NDO/Khanh Giang)
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NDO/VNA – Covered warrants (CWs) will be officially listed and traded on the Vietnamese stock market from June 28, according to the State Securities Commission of Vietnam (SSC).

The SSC said at a press briefing on June 24 that there are 16 securities companies eligible to issue CWs and 26 stocks that meet conditions to serve as underlying stocks for CWs at present.

The commission has received 17 dossiers from eight securities companies registering to sell CWs based on the underlying stocks of MBB, HPG, MWG, FPT, PNJ and VNM. It has granted issuance certificates for 16 CW products of seven firms.

According to the issuance plan, about 28.9 million CWs worth the maximum of VND104 billion (US$4.5 million) will be issued, SSC Vice Chairman Pham Hong Son said, adding that the SSC is verifying other dossiers to grant issuance licenses to other securities businesses.

He noted CW issuers are securities companies with charter capital of over VND1 trillion, good business performance, and ability to pay debt reaching maturity and meet financial safety criteria.

Bui Hoang Hai, Director of the SSC’s Securities Business Management Department, said the CW deployment will help investors prevent not only risks in the market but also specific risks of each type of stocks.