FLC shares suspended over information disclosure breach

The Ho Chi Minh Stock Exchange will impose a trading ban on FLC Group’s shares from September 9 over information disclosure violations.

The property developer has continued violating regulations on information disclosure after the trading of its shares had been placed under restrictions, the bourse (HoSE) announced Wednesday. The violations include failure to release financial statements in time.

Authorities have enforced several tough measures against FLC over its tax debt, including deducting money from its accounts to pay debts and blocking its accounts at VPBank, VIB, OCB, Agribank, Vietcombank, VietinBank and BIDV.

Besides, many provinces have terminated FLC Group's investment projects over delays after the arrest of its former chairman Trinh Van Quyet on March 29 for suspected stock market manipulation.

On August 15, the Ministry of Public Security’s police investigation agency (C01) announced a decision to investigate "the act of cheating to appropriate assets" by Quyet and his two sisters under the Penal Code.

The trio and Huong Tran Kieu Dung, former acting vice chairman of FLC Group, are suspected to have artificially raised the chartered capital of Faros Construction JSC, a subsidiary of FLC Group, and related companies.

Faros allegedly saw its chartered capital artificially expanded from VND1.5 billion ($64,000) to VND4,300 billion ($183.5 million), equivalent to 430 million ROS shares, which were listed and traded to reap illicit gains.

Previously, on March 29, Quyet was arrested on charges of “manipulating” and “concealing information in securities activities”.

Before Quyet was arrested, FLC Group had been known as one of Vietnam's leading property developers with many projects or investment proposals across the country.