What are regulations on decrease in charter capital of branches in Vietnam of foreign securities companies and foreign fund management companies?
What are regulations on decrease in charter capital of branches in Vietnam of foreign securities companies and foreign fund management companies?
What are regulations on decrease in charter capital of branches in Vietnam of foreign securities companies and foreign fund management companies? - image from internet
Pursuant to Article 188 of the Decree 155/2020/ND-CP stipulating decrease in charter capital:
1. Decrease in charter capital of securities companies, securities investment fund management companies, branches in Vietnam of foreign securities companies and foreign fund management companies shall comply with regulations of the Law on Enterprises and satisfy the following conditions:
a) The remaining equity after the decrease does not fall below the level specified in Article 175 of this Decree;
b) Liquidity ratio after decrease is at least 180%;
c) The internal between the capital decreases must be at least 12 months;
d) For securities companies and securities investment fund management companies that are joint stock companies, the conditions shall include repurchase of their own shares as prescribed in Article 36 of the Law on Securities;
dd) Regulations on foreign ownership ratio specified in Article 77 of the Law on Securities are complied with.
2. a) Before decreasing charter capital, the securities company or fund management company that is a limited liability company, branch in Vietnam of a foreign securities company or foreign fund management company shall submit an application for registration to SSC, which shall contain:
a) The application form No. 72 in the Appendix hereof;
b) The decision of the Board of Members or the company’s owner to increase capital and the plan for capital decrease, which must comply with regulations on foreign ownership ratio;
c) The decision of the Board of Directors, the Board of Members to approve the plan for repurchase of shares or return of contributed capital;
d) For securities companies and securities investment fund management companies that are public companies repurchasing their own shares, the application shall include the documents specified in Clause 1 Article 37 of the Law on Securities.
3. Securities companies and securities investment fund management companies that are public companies repurchasing their own shares shall follow the procedures specified in Clause 8 Article 36 and Article 37 of the Law on Securities.
4. Within 07 working days from the receipt of the application specified in Clause 2 of this Article, SSC shall issue a written response. In case the application is rejected, SSC shall issue a written rejection and provide explanation.
5. After the notification of SSC is received, procedures for capital decrease shall be followed as follows:
a) Securities companies, securities investment fund management companies that are limited liability companies shall follow the procedures specified in the Law on Enterprises;
b) Securities companies, securities investment fund management companies that are joint stock companies shall follow the procedures applied to public companies;
c) Branches in Vietnam of foreign securities companies and foreign fund management companies shall comply with foreign exchange laws.
6. Within 10 working days from the from the day on which repurchase of shares, return of contributed capital, transfer of contributed capital to the parent company is completed, the securities company, securities investment fund management company, or branch of the foreign securities company or foreign fund management company shall follow procedures for revising its license for establishment and securities operation specified in Article 174 and Article 181 of this Decree.
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