Legal Counselling

2021: More cases of cancellation of a public offering of securities in Vietnam

05:55, 05/12/2019

This is the prominent regulation stipulated in Law on Securities 2019 approved by the National Assembly of Vietnam on November 26, 2019 and officially takes effect from January 01, 2021.

hủy bỏ chào bán chứng khoán, Luật Chứng khoán 2019

According to the Law on Securities 2019 of Vietnam, the State Securities Commission of Vietnam (SSC) shall issue a decision to cancel a public offering in the following cases:

- If the causes of the suspension are not rectified by the deadline mentioned in Clause 1 Article 27 of this Law, the public offering shall be canceled;

- The quantity of voting shares being sold to at least 100 non-major shareholders of the issuer is below the ratio specified in Point d Clause 1 Article 15 of this Law;

- The follow-on offering fails to raise adequate capital to execute the issuer’s project as prescribed in Point d Clause 2 Article 15 of this Law.

The public offering is canceled under an effective court judgment or decision, arbitral decision or decision of a competent authority in cases other than those specified above.

Within 07 working days from the cancellation date, the issuer shall announce cancellation in accordance with Clause 3 Article 25 of this Law, withdraw the issued securities if requested by the investors, and refund the investors within 15 days from the cancellation date. If the investors are not refunded by this deadline, the issuer shall pay damages as agreed with the investors.

View more related regulations at the Law on Securities 2019 of Vietnam, effective from January 01, 2021.

Thuy Tram

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