What are regulations on release of securities from warning status at Ho Chi Minh Stock Exchange in Vietnam?

What are regulations on release of securities from warning status at Ho Chi Minh Stock Exchange in Vietnam?

In Clause 4, Clause 5, Clause 6, 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 regulations on release of securities from warning status at Ho Chi Minh Stock Exchange are as follows:

4. Release of securities from warning status:

4.1 HOSE shall consider releasing securities from the warning status and remove the warning sign if the listed enterprise/fund management company has completely rectified mistakes causing the warning status;

4.2 The warning sign imposed on securities which are given warnings as regulated in Paragraphs a, b and c Point 1.1 Clause 1 of this Article shall be removed on the basis of reviewed quarterly/half-year financial statements or audited annual financial statements. In case a listed enterprise has its securities put into the warning status as regulated in Paragraph c Point 1.1 Clause 1 of this Article and has offset its accumulated losses by capital surplus or other funding sources as regulated by current laws, one (01) year after dealing with losses (according to reviewed half-year financial statements or audited annual financial statements with notes of dealing with accumulated losses), the warning sign imposed on its securities may be removed if its business is profitable as recorded in its audited financial statements in the following year which must be given unqualified opinions by the auditor;

4.3 The removal of warning sign imposed on securities which are subject to warning as regulated in Paragraphs e and f Point 1.1 or Paragraph 1 Point 1.2 or Paragraph b Point 1.3 Clause 1 of this Article shall be considered if the listed enterprise/ fund management company/ securities investment company does not violate information disclosure rules for a minimum period of six (06) months from the issue date of warning notice.

5. HOSE may consider maintaining the imposition of warning on securities of a listed enterprise if deeming it necessary to protect investors.

6. HOSE shall publish information about the release of securities from the warning status.

What are cases in which shares and bonds of listed enterprises at Ho Chi Minh Stock Exchange are placed under control in Vietnam?

At Point 1.1, Clause 1, Article 23 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 of listed enterprises at Ho Chi Minh Stock Exchange are placed under control as follows:

1. Cases in which securities are placed under control:

1.1 With regard to shares and bonds:

a) In case prescribed in Paragraph a Point 1.1 Clause 1 Article 22 hereof, securities shall be placed under control if the paid-in charter capital of the enterprise that has shares or bonds listed falls below VND 120 billion as recorded in the financial statements of the following period;

b) In case prescribed in Paragraph b and Paragraph c Point 1.1 Clause 1 Article 22 hereof, securities shall be placed under control when the after-tax profit shown in the enterprise’s audited financial statements of the following year 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) An enterprise’s accumulated losses exceed its paid-in charter capital as recorded in the latest reviewed half-year financial statements (with due account taken of the auditor’s qualified opinions). If the listed enterprise has subsidiaries or is a superior accounting unit that has inferior accounting units, the accumulated loss shall be determined according to its consolidated financial statements/ general financial statements;

d) The listed enterprise suspends or is requested to suspend its main business operations for nine (09) months or longer;

e) Shares/bonds may be also placed under control in other cases where HOSE deems it necessary to protect investors after obtaining an approval from SSC.

What are cases in which ETF certificates of listed enterprises at Ho Chi Minh Stock Exchange are placed under control in Vietnam? 

At Point 1.2, Clause 1, Article 23 of the Regulations on listing of securities on Ho Chi Minh Stock Exchange, issued together with Decision 85/QD-SGDHCM in 2018, there are regulations on cases in which ETF certificates of listed enterprises at Ho Chi Minh Stock Exchange are placed under control as follows:

1.2 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 six (06) months;

b) The fund management company still violates information disclosure rules although it has been given warnings;

c) The NAV of an ETF has fallen below VND 10 billion for 03 consecutive months;

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 three (03) months;

e) ETF certificates may be also placed under control in other cases where HOSE deems it necessary to protect investors after obtaining an approval from SSC;

f) The company in charge of managing the ETF is dissolved or declared bankrupt or has its license for establishment and operation revoked but, over a month since the occurrence of the said events, 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, over a month since the occurrence of the said events, the fund management company has yet to establish a replacement;

h) ETF certificates may be also placed under control in other cases where HOSE deems it necessary to protect investors after obtaining an approval from SSC.

Best Regards!