Legal Counselling

Cases that public offering registration is not required in Vietnam

17:37, 05/12/2019

Recently, the National Assembly of Vietnam has issued the Law on Securities 2019, replacing the Law on Securities 2006 and the Law on Amendment to Law on Securities 2010 of Vietnam.

Các trường hợp không phải đăng ký chào bán chứng khoán ra công chúng, Luật Chứng khoán 2019

According to Article 16 of the Law on Securities 2019 of Vietnam, before a public offering, issuers and shareholders of public companies shall register with the State Securities Commission (SSC), except for the following cases that public offering registration is not required:

- Offering of debt instruments of the Government, Government-backed bonds issued by policy banks, and municipal bonds;

- Offering of bonds issued by international financial institutions approved by Vietnam’s Government;

- Public offering to convert state-owned enterprises, wholly state-owned single-member limited liability companies, public service agencies into joint-stock companies;

- Sale of securities under an effective court judgment or decision or under an arbitral decision; sale of securities of the asset manager or recipient in case of bankruptcy or insolvency.

Besides, this Law also stipulates that a securities company or an organization shall satisfy the following requirements to underwrite a public offering:

- The securities underwriting is licensed by SSC in accordance with this Law;

- Financial safety criteria are satisfied as prescribed by law;

- The underwriter is not a related person of the issuer.

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

Ty Na

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