he State Securities Commission (SSC) may take inspection tours of securities companies as investors and press agencies have rung the alarm bell over insider trading in the stock market.

Investors have expressed doubts about the transparency of securities transactions. The Vietnam Association of the Financial Investors (VAFI) has sent a document to the Ministry of Finance and SSC, saying that there might be insider trading at the securities trading centers. That explains why at some transactions, a group of investors rushes to buy large lots of a share item, and the price of this share item skyrockets after that, the investors earning fat profit as a result.

A source said that the securities watchdog intended to find out if there was insider trading. It is highly possible that the SSC will take inspection tours at the beginning of this week.

“The inspection tours will only be undertaken at the securities trading floors about which investors have complained. SSC will impose heavy punishments on violations of the laws,” the source said, adding that this aimed to create a transparent stock market, and help to restore the confidence of investors.

Before VAFI sent the document to the Ministry of Finance and SSC, local newspapers had also reported that there were signs of misconduct in orders accepted and accounts managed by several securities companies.

Readers have also called and sent e-mails to press agencies, saying that they had doubts about the insider trading. SSC has set up a hot line to receive information about inside trading.

An investor even asked newspapers to send reporters to attend the transactions, where they can supervise and record the investors’ claims.

However, no investor can show detailed proof.

An investor has e-mailed Thoi bao kinh te Vietnam, writing that investors were being treated unfairly. Some investors are controlling the market by establishing contacts with staffs of securities companies.

The doubts on insider trading originated with the information about the mistaken transactions of an investor in Hanoi. Tran Bac Ha, Director General of the Bank for Development and Investment of Vietnam (BIDV), later said at a conference that if there was alliances in the stock market then they could control market prices.

Several days ago, VAFI sent a document to the Ministry of Finance, saying that it suspected insider trading.

Analysts said that the tentative inspection tours may have a bad impact on the market and the VN Index may drop sharply after it has reached the 1,000 point threshold. However, this is a very necessary work, and it is expected by investors.

In related news, on January 19, SSC had a meeting with the State Bank of Vietnam, discussing solutions related to the management of the risks on the market.

Source: VNECONOMY