Which agency has the competence to delist securities? What are the regulations on the handling of violations against regulations on securities listing in Vietnam?
Which agency has the competence to delist securities on the securities market in Vietnam?
According to the provisions at point dd, Clause 1, Article 46 of the 2019 Law on Securities in Vietnam on the rights of the Vietnam Stock Exchange:
Rights and obligations of Vietnam Stock Exchange (VSE)
1. VSE has the rights to:
a) Issue its regulations on listing and trading securities, disclosing information, regulations on its members and other regulations on organization and operation of the securities market after they are approved by State Securities Commission (SSC);
b) Organize and operate the securities market;
c) Putting securities under alert, control and restriction in accordance with law and its SSC;
d) Suspend or terminate trading of certain securities in case of abnormal fluctuation in their prices or trading quantity without rectification by their issuers, which result in the securities being put under alert, control or restriction, or in case the suspension or termination is necessary to protect the investors’ the lawful rights and interests and ensure the stability and safety of the securities market;
dd) Approve, change, cancel listing or registration of securities; supervise the fulfillment of conditions for listing of securities of listed organizations;
e) Grant and cancel membership of members of VSE;
g) Provide bidding services; services involving market information and information about listed or registered securities; technological infrastructure development services for the securities market, and other relevant services specified in its Charter;
Thus, according to the above provisions, the Vietnam Stock Exchange has the competence to cancel listing of securities on the securities market.
Which agency has the competence to delist securities on the securities market in Vietnam? What are the regulations on the handling of violations against regulations on securities listing in Vietnam?
What are the regulations on the handling of violations against regulations on securities listing in Vietnam?
According to the provisions of Article 18 of Decree No. 156/2020/ND-CP, in case of violation against regulations on securities listing, the fines shall be as follows:
Violations against regulations on listing and registration of securities
1. A fine ranging from VND 70.000.000 to VND 100.000.000 shall be imposed for failing to carry out procedures for changes to listing or registration of securities or failing to complete procedures for listing or registration of additional securities by the prescribed deadline.
2. A fine ranging from VND 100.000.000 to VND 150.000.000 shall be imposed for failing to revise the application for listing or registration of securities when finding inaccurate, inadequate or misleading information or any new information related to the submitted application.
3. The following fines shall be imposed for failing to apply for listing or registration of securities, or failing to apply for listing or registration of securities by the prescribed deadlines:
a) A fine ranging from VND 10.000.000 to VND 30.000.000 shall be imposed for late submission of application for listing or registration of securities of up to 01 month;
b) A fine ranging from VND 30.000.000 to VND 70.000.000 shall be imposed for late submission of application for listing or registration of securities of exceeding 01 month to 03 months;
c) A fine ranging from VND 70.000.000 to VND 100.000.000 shall be imposed for late submission of application for listing or registration of securities of exceeding 03 months to 06 months;
d) A fine ranging from VND 100.000.000 to VND 200.000.000 shall be imposed for late submission of application for listing or registration of securities of exceeding 06 months to 09 months;
dd) A fine ranging from VND 200.000.000 to VND 300.000.000 shall be imposed for late submission of application for listing or registration of securities of exceeding 09 months to 12 months;
e) A fine ranging from VND 300.000.000 to VND 400.000.000 shall be imposed for late submission of application for listing or registration of securities of exceeding 12 months, or failure to apply for listing or registration.
4. A fine ranging from VND 400.000.000 to VND 500.000.000 shall be imposed for preparing or making certification on the application for listing or registration of securities which contains false information or conceals true information.
5. A fine ranging from VND 2.500.000.000 to VND 3.000.000.000 shall be imposed for forging documents or making certification on forged documents proving satisfaction of requirements for securities listing included in the application for listing of securities, or forging documents or making certification on forged documents included in the application for registration of securities.
Thus, violations against regulations on securities listing, depending on the seriousness of the violation, will be fined from VND 10,000,000 to VND 3,000,000,000.
How are listed securities categorized?
According to the provisions of Article 108 of Decree No. 155/2020/ND-CP, listed securities shall be categorized by market as follows:
- List of shares, fund certificates, secured warrants, non-voting DRs and other financial products;
- List of debt instruments;
- List of corporate bonds;
- List of derivatives.
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