What are procedures for scrip issue, issuance of shares to increase share capital from equity in Vietnam?

What are procedures for scrip issue, issuance of shares to increase share capital from equity in Vietnam? - image from internet

Pursuant to Article 69 of the Decree 155/2020/ND-CP stipulating following procedures:

- The issuer shall send the documents specified in Articles 61, 63, 65 of this Decree to SSC.

- Within 07 working days from the receipt of satisfactory documents, SSC shall send a written notification of the receipt of the documents to the issuer and post it on SSC’s website, or issue a written rejection and provide explanation.

- Within 07 working days from the day on which SSC issues the notification, the issuer shall publish a notification on the websites of the issuer and the Stock Exchange at least 07 working days before the end of the issuance.

- The issuance must not last for more than 45 days from the day on which SSC issues the notification of the receipt of satisfactory documents.

- During the process of scrip issue or issuance of shares to increase share capital from equity, the company may repurchase the fractional shares (if any) as treasury shares under the plan approved by the GMS (or the Board of Directors if authorized by the GMS). The shares repurchased by the company shall be settled in accordance with Clause 7 Article 36 of the Law on Securities and relevant regulations.

- Within 15 days from the end of the issuance, the issuer shall send reports on result of the issuance to SSC and publish it on the website of the issuer and Stock Exchange. In case of issuance of ESOP shares, these reports shall be enclosed with:

+ The list of employees that participate in the ESOP which specifies the quantity of shares distributed to (for bonus shares) or paid by each employee;

+ The written confirmation by the bank or FBB where the escrow account is opened of the revenue generated by the issuance, except issuance of bonus shares to employees.

- Within 03 days from the receipt of the satisfactory report, SSC shall send a written notification of the receipt of the report to the issuer, the Stock Exchange and VSDCC, and announce the receipt of it on the website of SSC.

- After receiving the notification from SSC, the issuer may request unfreezing of the amount obtained from the offering, except issuance of bonus shares to employees.

Best regards!