Brokerage comes under fire

November 23, 2011 | 16:04

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A second brokerage firm has been warned by the regulator for its failure to settle transactions.

Trang An Securities failed to settle some of its transactions at the Vietnam Securities Depository (VSD), which then made the regulator warn the firm and forced it to pay back in full the money before November 25, according to VSD’s statement.

The case comes nearly one month after SME Securities was suspended from conducting depositary activities due to the firm’s failure to settle to the VSD.

Trang An Securities general director Le Ho Khoi told VIR that the case was caused by some of Trang An Securities’ investors not paying in time, which made the company “temporarily lack cash.”

Khoi indicated that the money failed to be paid was “just small at VND1-2 billion”. He said his firm had completely prepared to pay the money before November 25.

Furthermore, Khoi admitted that the firm was suffering “some difficulties,” and the board was seeking a partner to “restructure” the company.

Trang An Securities posted accumulative losses of VND26.3 billion ($1.27 million) by the third quarter this year, with equity of VND130 billion. Meanwhile, cash and cash equivalents were posted at VND22 billion ($1.06 million).

Khoi said the firm had paused lending to investors to curb losses.