State Securities Commission issues warning on unlicensed capital-raising

State Securities Commission issues warning on unlicensed capital-raising

On March 25, the State Securities Commission issued a warning urging investors to be cautious on cooperative investment activities via the online platforms.

A number of businesses, through applications and websites on social media platforms, are raising capital from investors by signing cooperative investment contracts, then entrusting them to securities investment fund management companies to invest in financial products, the State Securities Commission (SSC) has said.

Capital-raising through cooperative investment contracts via such applications and websites is not managed or licensed by the commission.

Investors may face risks in the case of disputes without legal protection from securities law. The SSC warns investors to be cautious and thoroughly research the legal aspects when conducting cooperative investment transactions through applications and websites in the online environment.

Over the past few years, Vietnam’s stock market has become increasingly vibrant. A growing number of stock investment apps have been developed to attract investors with idle funds but limited time. These apps also target individuals with small amounts of capital who want to invest in stocks for profit.

The SSC has warned investors to be cautious about unlicensed applications, trading platforms, or service providers operating online without proper authorisation. It also advises investors to exercise caution when conducting investment transactions due to potential risks.

One of the platforms flagged by the SSC is Tikop, which advertises savings packages with targeted returns of 6–8.5 per cent per year and flexible withdrawal options.

Buff, another investment platform, offers a product that helps users grow idle funds with interest rates of up to 8.2 per cent per year.

VIR