Vietnam: In which cases are shares subject to compulsory delisting? How long does a company have to wait to relist after delisting?
In which cases are shares subject to compulsory delisting in Vietnam?
According to Clause 1, Article 120 of Decree 155/2020/ND-CP, shares shall be delisted in one of the following cases:
- The listed organization is delisted according to State Securities Committee of Vietnam’s notification;
- The listed organization suspends or is suspended from its main business operations for at least 01 year;
- The listed organization has its Certificate of Enterprise Registration or operation license revoked;
- The listed organization’s shares are not traded at the Stock Exchange for 12 months;
- Shares are not put into trading within 90 days from the day on which listing is approved by the Stock Exchange;
- 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;
- The listed organization ceases to exist due to re-organization, dissolution or bankruptcy;
- 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;
- The listed organization submits its annual financial statements behind schedules for 3 consecutive years;
- State Securities Committee of Vietnam, the Stock Exchange discovers that the listed organization uses fraudulent documents in the application for listing;
- The listed organization commits the violations specified in Clauses 1, 2, 3, 7 Article 12 of the 2019 Law on Securities:
+ Direct or indirect commission of frauds, forgery of documents, provision or disclosure of false information to conceal true information or omit necessary information in a manner that causes misunderstanding, adversely affects the offering, listing, trading, investment of securities and provision of securities-related services.
+ Use of internal information to buy or sell securities to oneself or another person; revelation or provision of internal information; advising another person to buy or sell securities based on internal information.
+ Use of one or several accounts of oneself or another person, trading securities in a manner that creates artificial demand or supply; collaborating with another person in trading securities to manipulate securities prices; use of other methods, with or without false information, to manipulate securities prices.
+ Organizing the securities market against regulations of the 2019 Law on Securities.
- The listed organization is suspended or banned from operating in its main business lines;
- 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;
- 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 State Securities Committee of Vietnam in order to protect interests of investors.
Vietnam: In which cases are shares subject to compulsory delisting? How long does a company have to wait to relist after delisting?
How long does a company have to wait to relist after delisting?
Pursuant to Clause 1, Article 122 of Decree 155/2020/ND-CP stipulating 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 may only apply for relisting after trading for at least 02 years on UPCOM.
What are the procedures for relisting registration in Vietnam?
Pursuant to Clause 2, Article 122 of Decree 155/2020/ND-CP, the procedures for relisting registration shall comply with the provisions of Article 111 of Decree 155/2020/ND-CP. To be specific:
Procedures for listing registration in Vietnam
1. Within 30 working days from the receipt of the satisfactory application, the Stock Exchange shall issue a decision to approve the listing, or issue a written rejection and provide explanation.
2. Within 90 days from the day on which listing is approved, the applying organization shall put its securities into trading.
Thus, within 30 working days from the receipt of the satisfactory application, the Stock Exchange shall issue a decision to approve the listing, or issue a written rejection and provide explanation.
- Within 90 days from the day on which listing is approved, the applying organization shall put its securities into trading.
LawNet