What is determination of ceiling and floor prices in trading stocks, closed-end fund certificates, ETF certificates, covered warrants in Vietnam?

What is determination of ceiling and floor prices in trading stocks, closed-end fund certificates, etf fund certificates, covered warrants in Vietnam?

Pursuant to Article 31 of the Regulation on Listing and Trading of Listed Securities issued together with Decision 17/QD-HDTV in 2022, determination of ceiling and floor prices in trading stocks, closed-end fund certificates, etf fund certificates, covered warrants is specified as follows:

1. The ceiling price and floor price on the trading day of stocks, closed-end fund certificates and ETF certificates are calculated according to the provisions of Clauses 2 and 3 of this Article and rounded down for ceiling prices, rounded up for the floor price according to the quotation unit specified in Article 29 of this Regulation.

2. The ceiling price and floor price are determined as follows:

a) For stocks, closed-end fund certificates, ETF certificates:

Ceiling price = Reference price + (Reference price x Price range)

Floor price = Reference price - (Reference price x Price range)

b) For covered warrants: The ceiling/floor price on the first trading day and the normal trading day of the warrants based on the underlying securities being shares is determined as follows:

Ceiling price = Warrant reference price + (base price ceiling - underlying stock reference price) x 1/Conversion rate

Floor price = Option reference price - (reference price of the underlying stock - floor price of the underlying stock) x 1/Conversion rate

In case the floor price of the warrant is less than or equal to zero (0), the floor price will be the smallest quote unit equal to 10 dong.

3. In case the ceiling price or floor price of stocks, closed-end fund certificates or ETF certificates is determined according to the provisions of Clause 2 of this Article equal to the reference price, the ceiling price and floor price will be adjusted as follows: after:

Adjusted ceiling price = Reference price + 01 quote unit

Adjusted floor price = Reference price - 01 quote unit

The value of the quotation unit shall comply with the provisions of Article 29 of this Regulation.

4. In case the floor price adjusted under Clause 3 of this Article is less than or equal to zero (0), the floor price will be adjusted equal to the reference price.

5. In case, after calculation, the reference price is equal to the quote unit, the price fluctuation limit is redefined as follows:

Adjusted ceiling price = Reference price + 01 quote unit

Adjusted floor price = Reference price

The value of the quotation unit shall comply with the provisions of Clause 1, Article 29 of this Regulation.

6. The price fluctuation range shall comply with the provisions of Appendix III of this Regulation for the following cases:

a) First trading day of newly listed stocks and fund certificates.

b) Listed stocks and fund certificates are suspended or suspended from trading for 25 consecutive trading days or more.

c) In case of paying dividends/bonuses in treasury shares to existing shareholders on the ex-dividend date.

d) In case of payment of cash dividend with an amount greater than or equal to the closing price of the shares on the trading day immediately preceding the ex-dividend date.

dd) Separation of a listed enterprise on the day of ex-rights.

e) Issue convertible bonds to existing shareholders.

What are regulations on price fluctuation range and price fluctuation limit in trading stocks, closed-end fund certificates, ETF certificates, covered warrants in Vietnam?

Pursuant to Article 30 of the Regulation on Listing and Trading of Listed Securities issued together with Decision 17/QD-HDTV in 2022 stipulating price fluctuation range and price fluctuation limit in trading stocks, closed-end fund certificates, ETF certificates, covered warrants as follows:

1. The Vietnam Stock Exchange shall stipulate the price fluctuation range during the trading day for stocks, closed-end fund certificates, and ETF certificates after obtaining the approval of the State Securities Commission.

2. The price fluctuation range for stocks, closed-end fund certificates and ETF certificates shall comply with the provisions of Clause 4, Article 12 of this Regulation.

What are regulations on reference price in trading stocks, closed-end fund certificates, ETF certificates, covered warrants in Vietnam? 

In Article 32 of the Regulation on Listing and Trading of Listed Securities issued together with Decision 17/QD-HDTV in 2022, stipulating reference price in trading stocks, closed-end fund certificates, ETF certificates, covered warrants as follows:

1. The determination of the price of stocks, closed-end fund certificates, ETF certificates, covered warrants newly listed on the first trading day is prescribed as follows:

a) The reference price is applied to stocks, closed - end fund certificates, and ETF certificates newly listed on the first trading day proposed by the listing organization. The listing organization sends documents and reports on the method of determining the reference price, principles and financial data in the financial statements or other related documents to determine the reference price. For warrants based on underlying securities being shares, the reference price on the first trading day is determined as follows:

Reference price of warrants = Issuance price of warrants x (Referral price of the underlying stock on the first trading day of the warrant / Reference price of the underlying stock at the date of the warrant issuance notice ) x (Conversion rate at the warrant issuance date /Conversion rate at the first trading day).

b) In case in 03 consecutive trading days from the first trading day of stocks, closed fund certificates, ETF certificates, the closing price has not been determined to be used as the reference price of the trading day. Next, the listing organization must send an official dispatch to re-determine the reference price and send it to the Stock Exchange before 4:30 p.m. on the third day, if the reference price cannot be determined.

2. The reference price of stocks , closed-end fund certificates, and ETF certificates during the trading day is the closing price of the most recent previous trading day.

3. The reference price of stocks, closed-end fund certificates, ETF certificates, covered warrants is suspended or suspended from trading for 25 consecutive trading days or more, when trading is resumed by the Stock Exchange. decision.

4. In case of securities trading not entitled to dividends and accompanying rights, the reference price at the ex-right date is determined according to the principle of taking the closing price of the nearest trading day and adjusting it according to the dividend value. received or the value of the accompanying rights, except in the following cases:

a) The enterprise issues additional shares , closed-end fund certificates with the issue price higher than or equal to the closing price of the previous trading day before the ex-right date after adjusting other rights (if any). 

b) The enterprise pays cash dividends with an amount greater than or equal to the closing price of the shares in the preceding trading day prior to the ex - dividend date.

c) The enterprise pays dividends/bonuses in treasury shares to existing shareholders.

5. In case of splitting or merging of shares, the reference price at the re-trading date is determined according to the principle of taking the closing price of the trading day before the date of separation or consolidation, adjusted according to the ratio of shares splitting or merging.

6. Cases where the reference price is not adjusted include:

- Issuance of convertible bonds (including issuance to existing shareholders).

- Issuing securities privately, offering securities to investors who are not existing shareholders.

- Issuing shares under the option program for employees in the company.

- Issuing additional shares under the swap plan from merger transactions.

- Listing organizations reduce charter capital.

- Offering treasury shares to existing shareholders.

- Other issuances do not affect the rights of existing shareholders.

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