What are cases in which shares and bonds are subject to warnings at Ho Chi Minh Stock Exchange in Vietnam?

What are cases in which shares and bonds are subject to warnings at Ho Chi Minh Stock Exchange in Vietnam?

At Point 1.1, Clause 1, Article 22 of the Regulations on listing of securities on Ho Chi Minh Stock Exchange, issued together with Decision 85/QD-SGDHCM in 2018 with regulations on cases in which shares and bonds are subject to warnings at Ho Chi Minh Stock Exchange as follows:

1. Cases in which securities are subject to warnings:

1.1 With regard to shares and bonds:

a) The paid-in charter capital of an enterprise that has shares or bonds listed falls below VND 120 billion as expressed in its latest financial statements;

b) After-tax profit in the fiscal year expressed in the enterprise's audited financial statements is a negative balance (with due account taken of the auditor’s qualified opinions). If the listed enterprise is a superior accounting unit that has inferior accounting units, the after-tax profit shall be determined according to its general financial statements. If the listed enterprise has subsidiaries, profits after tax earned by shareholders of the parent company as expressed in the consolidated financial statements shall be considered;

c) Undistributed after-tax profit expressed in the enterprise's audited financial statements is a negative balance (accumulated losses) (with due account taken of the auditor’s qualified opinions). If the listed enterprise is a superior accounting unit that has inferior accounting units, the accumulated losses shall be determined according to its general financial statements. If the listed enterprise has subsidiaries, the accumulated losses shall be determined according to its consolidated financial statements;

d) The listed enterprise suspends or is requested to suspend its main business operations for three (03) months or longer;

e) The listed enterprise submits its audited annual financial statements or reviewed half-year financial statements more than fifteen (15) business days late after the prescribed deadline for information disclosure.

f) The listed enterprise fails to comply with information disclosure rules 04 times or more during a year;

g) Stocks have not been traded within the past six (06) months;

h) Warning is given in other cases where HOSE deems it necessary to protect investors after obtaining an approval from SSC.

What are cases in which closed-end fund certificates and shares of securities investment companies are subject to warnings at Ho Chi Minh Stock Exchange in Vietnam?

At Point 1.2, Clause 1, Article 22 of the Regulations on listing of securities on Ho Chi Minh Stock Exchange, issued together with Decision 85/QD-SGDHCM in 2018 with regulations on cases in which closed-end fund certificates and shares of securities investment companies are subject to warnings at Ho Chi Minh Stock Exchange as follows:

1.2 With regard to closed-end fund certificates and shares of securities investment companies:

a) Fund management company/ securities investment company fails to comply with information disclosure rules 04 times or more during a year;

b) A securities investment company has its stocks not been traded within the past six (06) months;

c) Warning is given in other cases where HOSE deems it necessary to protect investors after obtaining an approval from SSC.

What are cases in which ETF certificates are subject to warnings at Ho Chi Minh Stock Exchange in Vietnam?

At Point 1.3, Clause 1, Article 22 of the Regulations on listing of securities on Ho Chi Minh Stock Exchange, issued together with Decision 85/QD-SGDHCM in 2018, there are provisions on cases in which ETF certificates are subject to warnings at Ho Chi Minh Stock Exchange as follows:

1.3 With regard to ETF certificates:

a) TE continuously exceeds 80% of the highest TE stipulated by HOSE (but is not higher than this highest TE stipulated by HOSE) for 03 months.

b) The fund management company fails to comply with information disclosure rules 04 times or more during a year.

c) The NAV of an ETF falls below VND 10 billion for a month;

d) The criterion "There are at least two (02) authorized participants and one (01) of them is the trading member of HOSE” has not yet been fulfilled for a month;

e) Warning is given in other cases where HOSE deems it necessary to protect investors after obtaining an approval from SSC;

f) The company in charge of managing ETF is dissolved, declared bankrupt or has its license for establishment and operation revoked but the ETF’s board of representatives has yet to establish a replacement;

g) The ETF’s custodian bank is dissolved or declared bankrupt, unilaterally terminates the signed custodial agreement or the signed custodial agreement is terminated at the request of the fund management company, or has its certificate of registration of securities depository services revoked but the fund management company has yet to establish a replacement;

h) Warning is given in other cases where HOSE deems it necessary to protect investors after obtaining an approval from SSC.

Best Regards!