What to do to avoid risks when buying delisted stocks?

The Department of Securities Market Development - State Securities Commission (SSC) has just announced a series of regulations on mandatory delisting of stocks and some notes for investors.

According to this agency, regulations on mandatory delisting of shares on the stock market when necessary are extremely important, contributing to creating a fair and transparent investment environment.

Cases in which public company shares will be subject to compulsory delisting are stipulated in Clause 1, Article 120 of Decree No. 155/2020/ND-CP of the Government detailing the implementation of a number of articles of the Law on Securities.

Investors need to understand the regulations related to mandatory delisting to make the right investment decisions.

In addition, the Regulations on listing and trading of listed securities issued under Decision No. 17/QD-HDTV of the Board of Members of the Vietnam Stock Exchange have provided regulations on cases where stocks are warned, controlled, restricted, or suspended from trading. In addition, according to the Market Development Department, investors need to clearly understand the regulations related to the compulsory delisting of stocks and some notes when participating in stock trading, avoiding the risk of losing investment capital when stocks are subject to compulsory delisting.

The representative of the Securities Market Development Department recommends that investors need to equip themselves with knowledge and understanding of the stock market, financial foundation, reputation and prospects of listed companies. In addition, it is necessary to be careful in choosing to invest in listed stocks, and consider the ability to comply with legal regulations in general and securities law regulations in particular of that company. Consider the legal compliance of the company's executives, evaluate the reputation and corporate governance ability of the company.

Investors also need to pay attention to updating all information about stocks, financial reports of enterprises, grasp, evaluate stock quality and make investment decisions more accurately.

Recently, the Ho Chi Minh City Stock Exchange (HoSE) and the Hanoi Stock Exchange (HNX) have made a series of decisions to force the delisting of a number of stocks on the exchange such as HBC, HNG, HTN... Most of the reasons are because the businesses have accumulated losses for 3 consecutive years.

Source: https://nld.com.vn/uy-ban-chung-khoan-canh-bao-rui-ro-khi-mua-co-phieu-bi-huy-niem-yet-196240819104558953.htm