Vietnam: Is the Stock Exchange allowed to suspend operations upon appearing fluctuations in the economy?
- Is the Stock Exchange in Vietnam allowed to suspend operations upon appearing fluctuations in the economy?
- What is the time limit for suspension from operations of the Stock Exchange in Vietnam due to fluctuations in the economy?
- What is the displayed symbol upon the suspension from operations of the Stock Exchange in Vietnam?
Is the Stock Exchange in Vietnam allowed to suspend operations upon appearing fluctuations in the economy?
Pursuant to Clause 1, Article 5 of the Regulations on securities trading at the Ho Chi Minh City Stock Exchange issued together with Decision 352/QD-SGDHCM in 2021 on cases of suspension from operations as follows:
Suspension, partial or full termination, or restoration of operations
1. The Stock Exchange suspends, partially or fully suspends, or resumes operations in the following cases:
a) Respond to and remedy incidents, events, and fluctuations affecting the safety, stability, and integrity of the securities market specified in Article 302 of Decree 155/2020/ND-CP.
b) Cases specified in Article 304 of Decree 155/2020/ND-CP.
c) Cases specified in Article 29 of this Regulation.
Referring to the provisions of Article 304 of Decree 155/2020/ND-CP as follows:
Suspension, partial or full termination of all operations of the Stock Exchange
1. SSC shall issue the decision on suspension, termination of part or all operations of the Stock Exchange in one of the cases specified in Clause 1 Article 49 of the Law on Securities, restoration of part or all operations of the Stock Exchange in accordance with Clause 2 Article 49 of the Law on Securities after it is approved by the Minister of Finance, the Prime Minister.
2. The suspension period shall not exceed 05 working days. Where necessary, SSC may request the Minister of Finance to consider extending the suspension period for up to 05 more days.
3. Within 24 hours after the decision on suspension, termination or restoration of operations of the Stock Exchange is published on the website of SSC, the Stock Exchange shall implement it and disclose information on its website.
Referring to Clause 1, Article 49 of the Law on Securities 2019 as follows:
Suspension, termination, and restoration of operations of VSE and its subsidiaries
1. SSC will suspend, or terminate some or all operations of the Stock Exchange and its subsidiaries in case of:
a) A war, natural disaster or major fluctuation of the economy, malfunction of the trading system, or any other force majeure event that affects the normal operation of the securities market;
b) Abnormal fluctuation of the securities market or it is necessary to protect the investors’ the lawful rights and interests and ensure the stability and safety of the securities market.
2. SSC will restore some or all transactions of VSE and its subsidiaries when the causes of the suspension or termination have been rectified.
Accordingly, when large fluctuations in the economy affect the normal operation of the securities market, then the Stock Exchange will suspend stock trading.
At the same time, within 24 hours from the decision to suspension of operations, the Stock Exchange must partially or fully terminate or resume operations on the securities market, including the underlying securities market and derivatives market, and disclose information on its website.
What is the time limit for suspension from operations of the Stock Exchange in Vietnam due to fluctuations in the economy?
According to the provisions of Clause 2, Section 304 of Decree 155/2020/ND-CP on this content as follows:
Suspension, termination of part or all operations of the Stock Exchange
...
2. The suspension period shall not exceed 05 working days. Where necessary, SSC may request the Minister of Finance to consider extending the suspension period for up to 05 more days.
Accordingly, the suspension period shall not exceed 05 working days.
In case of necessity, the State Securities Commission shall report to the Minister of Finance to consider extending the time limit for suspending operations of the Stock Exchange, the extension period must not exceed 05 working days at a time.
What is the displayed symbol upon the suspension from operations of the Stock Exchange in Vietnam?
Pursuant to Clauses 2 and 3, Article 29 of the Regulations on securities trading at the Ho Chi Minh City Stock Exchange issued together with Decision 352/QD-SGDHCM in 2021, stipulating the suspension or termination of listed securities trading as follows:
Suspension or termination of listed securities trading
1. The Stock Exchange may decide to suspend or terminate trading in one or several listed securities codes as prescribed in the securities listing regulations.
2. In case the suspension or termination period of operations does not exceed one (01) trading day, the symbol of suspension or termination of operations on the trading system and on the means of information disclosure of the Stock Exchange is "H".
3. In case the suspension or termination period of operations is two (02) trading days or more, the symbol of suspension or termination of operations on the trading system and on the means of information disclosure of the Stock Exchange is "S".
4. Securities suspended or terminated from trading will be allowed to trade again by the Stock Exchange after meeting the provisions of the securities listing regulations.
According to the above provisions, upon suspension from listed securities trading for one day, the symbol of suspension from operations on the trading system and on the means of information disclosure of the Stock Exchange is "H".
According to the above provisions, upon suspension from listed securities trading for two days or more, the symbol of suspension from operations on the trading system and on the means of information disclosure of the Stock Exchange is "S".
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