What is the listing of securities in Vietnam? Shall a public company’s shares which are not traded be delisted?
What is the listing of securities in Vietnam?
According to Clause 24, Article 4 of the 2019 Law on Securities of Vietnam stipulating listing of securities in Vietnam as follows:
Definitions
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24. Listing means the admission of eligible securities to trading on a system for trading of listed securities.
Thus, listing means the admission of eligible securities to trading on a system for trading of listed securities.
What is the listing of securities in Vietnam? Shall a public company’s shares which are not traded be delisted?
How long shall a public company’s shares which are not traded be delisted?
Pursuant to the provisions of Clause 1, Article 120 of Decree 155/2020/ND-CP of Vietnam guiding the Law on Securities as follows:
Compulsory delisting
1. Shares of a public company shall be delisted in one of the following cases:
a) The listed organization is delisted according to SSC’s notification;
b) The listed organization suspends or is suspended from its main business operations for at least 01 year;
c) The listed organization has its Certificate of Enterprise Registration or operation license revoked;
d) The listed organization’s shares are not traded at the Stock Exchange for 12 months;
d) Shares are not put into trading within 90 days from the day on which listing is approved by the Stock Exchange;
e) The listed organization incurs losses in 03 consecutive years or total cumulative loss exceeds the charter capital contributed in reality or has a negative equity in the latest audited annual financial statement;
g) The listed organization ceases to exist due to reorganization, dissolution or bankruptcy;
h) The audit organization refuses to audit or has adverse opinions or refuses to offer opinions about the latest annual financial statement of the listed organization or has qualified opinions about the annual financial statements of 03 consecutive years;
i) The listed organization submits its annual financial statements behind schedules for 3 consecutive years;
k) SSC, the Stock Exchange discovers that the listed organization uses fraudulent documents in the application for listing;
l) The listed organization commits the violations specified in Clauses 1, 2, 3, 7 Article 12 of the Law on Securities;
m) The listed organization is suspended or banned from operating in its main business lines;
n) The conditions for listing after merger, partial division or restructuring are not fully satisfied; the organization does not apply for listing or continued listing on schedule after merger, partial division or restructuring;
o) The listed organization fails to fulfill its obligation to disclose information, fails to fulfill its financial obligations to the Stock Exchange and other cases in which compulsory delisting is deemed necessary by the Stock Exchange or SSC in order to protect the interests of investors.
Thus, in case the listed organization’s shares are not traded at the Stock Exchange for 12 months, the shares shall be delisted.
In addition, shares are not put into trading within 90 days from the day on which listing is approved by the Stock Exchange, it will be forced to be delisted.
If the shares of a public company are delisted, can they be re-registered?
Pursuant to Article 122 of Decree 155/2020/ND-CP of Vietnam guiding the Law on Securities, the conditions for re-registration in cases of delisting are as follows:
Applying for relisting
1. The organization whose shares are delisted as prescribed in Article 120 or Article 121 of this Decree may only apply for relisting after trading for at least 02 years on UPCOM.
2. The conditions, documentation and procedures for relisting shall comply with Article 110 and Article 111 of this Decree.
Thus, the organization whose shares are delisted as prescribed may only apply for relisting after trading for at least 02 years on UPCOM.
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