The Vietnam Stock Exchange (VNX) has issued a Decision to suspend the purchase of securities on the listed stock market and the market to register for trading for BOS Securities Joint Stock Company at the Ho Chi Minh City Stock Exchange and Hanoi Stock Exchange.
The reason for the suspension is that BOS Securities Company was placed under control by the State Securities Commission (SSC). The suspension period is from February 17, 2025 until this securities company is removed from control. Notably, this is the second time this securities company has received a decision to suspend securities purchases. In August 2023, BOS Securities Company received a similar decision from VNX on the grounds that the company violated its obligation to report and disclose members' information and had not yet remedied the violation.
BOS Securities Company was once known as a member of the FLC ecosystem, related to the stock trading activities of Mr. Trinh Van Quyet. According to the conclusion of the Investigation Police Agency, a group of individuals led by Mr. Trinh Van Quyet, former Chairman of FLC Group, used 141 accounts opened at BOS to manipulate stocks. Ms. Trinh Thi Thuy Nga, former member of the Board of Directors and Deputy General Director of BOS and also Mr. Quyet's younger sister, has granted fake limits to several dozen accounts to buy and sell securities.
Immediately after Mr. Trinh Van Quyet was arrested, BOS Securities Company reported a loss of VND 986 billion in 2022, although it had previously made a profit of VND several billion to VND tens of billions per year, from 2014 - 2021. By 2023, the company will continue to lose 18 billion VND. In 2024, the board of directors of BOS Securities Company believes that this will be a pivotal year for the restructuring period of enterprises. The company aims to achieve revenue of VND61.6 billion and pre-tax profit of VND21 billion, with prospects for KRX story, market upgrade, Land Law and revised Credit Institution Law that will have a positive impact on the entire industry.
However, the situation was not as expected when the company lost nearly 13 billion VND after tax in the first 6 months of 2024. The accumulated loss at the end of June 2024 was VND 852 billion. The 2024 semi-annual report also recorded the audit's exclusion and factors that need to be emphasized. In particular, the audit emphasized that at the time of report issuance, the company had a number of events arising after the accounting period, leading to the narrowing of current and future business operations.
In May 2024, the State Securities Commission revoked the certificate of eligibility to trade in derivatives and the certificate of eligibility to provide clearing and settlement services for derivatives of BOS Securities Company. By October 2024, the company was put under control by the State Securities Commission due to not meeting financial safety targets.
Then in November 2024, the State Securities Commission continued to issue a decision to sanction administrative violations in the field of securities and the stock market against BOS Securities Company with the amount of 175 million VND. The reason is that the company reported incorrect capital ratio available for the Financial Safety Rate Reports at certain times in 2024 and the Financial Safety Rate Report on June 30, 2024 that have been reviewed.
