Strategic investors make the payment for purchasing shares through which method? How is the refund handled if the investor makes a deposit in foreign currency?
How do strategic investors make payment for purchasing shares?
According to Article 17, Appendix 9 issued together with Circular 32/2021/TT-BTC, the content is as follows:
Methods and Places for Payment for Purchasing Shares
1. Based on the notification of auction results, the winning investor is responsible for making the payment for purchasing shares within ten (10) days from the announcement of the auction results.
2. The deposit in Vietnamese Dong will be deducted from the total amount payable for purchasing shares. If the deposit amount exceeds the total amount payable, the investor will be refunded the difference within three (03) working days from the end of the payment period for purchasing shares.
The deposit, margin in foreign currency will not be deducted from the total amount foreign investors must pay. The auction organizing entity/downsizing enterprise (in case of deposit) or the credit institution (in case of margin) will refund the foreign investor after the foreign investor completes the payment of the winning shares in Vietnamese Dong into the account of the revenue from privatization of the downsizing enterprise as stipulated in clauses 1 and 3 of this Article.
3. Payment for purchasing shares:
Payment in Vietnamese Dong by depositing into the account for revenue from privatization of the enterprise with the following information:
- Account name:....;
- Account number:........................ ;
- At Bank:............................. ;
- Payment/Transfer description: ....;
4. The privatizing enterprise transfers the revenue from selling shares for strategic investors to the Restructuring and Development Fund as regulated.
Thus, the strategic investor who wins the auction for purchasing shares is responsible for making the payment, in Vietnamese Dong, by depositing into the account for revenue from privatization of the enterprise with the following information:
- Account name- Account number- At Bank- Payment/Transfer description.
How do strategic investors make payment for purchasing shares? How is the deposit by foreign currency handled for refund?
How is the refund handled if foreign investors deposit using foreign currency?
According to Article 20, Appendix 9 issued together with Circular 32/2021/TT-BTC, the content is as follows:
Handling Deposits and Margin Accounts to Ensure the Right to Purchase Shares
1. The privatizing enterprise is responsible for refunding deposits or carrying out procedures to release margin accounts, guaranteeing for the investor who participates in the auction but does not purchase shares within five (05) working days from the announcement of auction results.
2. Foreign investors who deposit, margin using foreign currency will be refunded in foreign currency;
3. For winning investors, the deposit is handled as stipulated in clause 2, Article 17 of this Regulation. If the deposit for participating in the auction of the investor exceeds the payment for the winning shares, the investor needs to send a document to the Stock Exchange and the privatizing enterprise before the payment deadline of the shares purchase if they wish to refuse to purchase the shares.
4. For non-refundable deposits due to breach of auction regulations by the investor according to clause 1, Article 18 of this Regulation, the privatizing enterprise will transfer the funds as stipulated in clause 1, Article 11 of Circular 32/2021/TT-BTC.
Thus, in the case of foreign investors depositing, margin using foreign currency, they will be refunded in foreign currency.
Is it a violation of auction regulations if an investor registers but does not buy shares?
According to point d, clause 1, Article 18, Appendix 9 issued together with Circular 32/2021/TT-BTC, the content is as follows:
Handling Violations
1. The following cases are considered violations of auction regulations, and the investor will not be refunded the deposit, or the enterprise requires the credit institution to release the margin, to fulfill the payment obligation for securing the right to purchase shares corresponding to the following cases:
a) Not submitting the Auction Participation Form;
b) The Auction Participation Form is invalid according to clause 1, Article 12 of this Regulation;
c) Not specifying price and/or quantity on the Auction Participation Form;
d) Registering but not placing a purchase;
e) Bidding lower than the starting price;
f) Not fully or partially paying for the shares entitled to purchase according to the auction results, the investor will not be refunded the deposit or the enterprise requires the credit institution to release the margin to fulfill the payment obligation for the corresponding shares refused to purchase. In case the investor only partially pays, the auction-winning shares of that investor will be considered by the Auction Council in descending order of bid price among the investor's bid prices.
Thus, if the investor registers but does not purchase shares, it is a violation of the auction regulations, and the Auction Council will consider handling depending on the severity of the violation.
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