Vietnam: Who can apply for trading on UPCOM? What does the application for registering to trade on UPCOM include?
Who can apply for trading on UPCOM in Vietnam?
According to the provisions of Clause 1, Article 133 of Decree 155/2020/ND-CP as follows:
Subjects eligible for applying for trading on UPCOM
+ Public companies that are not listed on Stock Exchanges;
+ Companies that are delisted involuntarily or voluntarily but are still qualified as public companies;
+ Equitized enterprises that have to apply as prescribed by regulations of law on equitization of state-owned enterprises, wholly state-owned single-member limited liability companies and public service providers.
What does the application for registering to trade on UPCOM in Vietnam include?
Pursuant to Article 134 of Decree 155/2020/ND-CP as follows:
- The application for trading on UPCOM of a public company specified in Point a, Clause 1, Article 32 of the Law on Securities shall include:
+ The application form No. 36 in the Appendix issued with Decree 155/2020/ND-CP;
+ The documents specified in Points b, c, d, dd Clause 1 Article 33 of the Law on Securities;
+ VSDCC’s written confirmation of public company registration;
+ The certificate of securities registration issued by VSDCC and notification to be sent to VSDCC of the date of closing shareholder list.
- The application for trading on UPCOM of a public company specified in Point b, Clause 1, Article 32 of the Law on Securities shall include:
+ The documents specified in Points a, c, d Clause 1 of Decree 155/2020/ND-CP;
+ The prospectus enclosed with the certificate of offering and report on result of public securities offering;
+ The documents specified in Points b, c Clause 1 Article 33 of the Law on Securities.
- The application submitted by an equitized enterprise shall include:
+ If the equitization process has been completed, the application shall contain the documents specified in Clause 1 of this Article. In case the equitized enterprise fails to fulfill the conditions specified in Point a Clause 1 Article 32 of the Law on Securities, the application shall exclude SSC’s confirmation of public company registration;
+ If equitization is associated with registration, depositing, registration for trading, the application shall be prepared in accordance with regulations of law on equitization of state-owned enterprises, wholly state-owned single-member limited liability companies and public service providers.
What are the procedures for registering to trade on UPCOM in Vietnam?
According to the provisions of Article 135 of Decree 155/2020/ND-CP on the procedures for registering to trade on UPCOM in Vietnam as follows:
Procedures for applying for trading on UPCOM
1. Within 05 working days from the receipt of the satisfactory application (or the Certificate of Securities Registration in the case specified in Point a Clause 3 Article 134 of this Decree), the Stock Exchange shall issue a decision to approve the registration and disclose information on the market.
2. Within 10 days from the day on which the Stock Exchange issues the decision to approve the registration, the issuer shall put its shares into trading on UPCOM.
3. If equitization is associated with registration, depositing, registration for trading, the procedures shall be carried out in accordance with regulations of law on equitization of state-owned enterprises, wholly state-owned single-member limited liability companies and public service providers.
Thus, according to the above regulations, within 05 days, the Stock Exchange shall issue a decision to approve the registration and disclose information on the market.
After issuing a decision to approve the registration, the issuer shall put its shares into trading on UPCOM.
In addition, Clause 2, Article 133 of Decree 155/2020/ND-CP specifies the time limits for applying for trading on UPCOM as follows:
- The public company shall complete registration of shares at VSDCC and apply for trading on UPCOM in accordance with Point d and Point dd, Clause 1, Article 34 of the Law on Securities;
- Within 07 working days from the effective date of the delisting decision, the Stock Exchange shall cooperate with VSDCC in registration of shares of the delisted company;
- Time limit for equitized enterprises to apply shall comply with regulations of law on equitization of state-owned enterprises, wholly state-owned single-member limited liability companies and public service providers. Equitized enterprises that apply for trading on UPCOM shall disclose information in accordance with regulations of law and regulations of the Stock Exchanges.
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