Sample Regulation on Auctioning Shares via the Stock Exchange

This sample regulation applies to the organization of auctioning shares of enterprises undergoing equitization among strategic investors conducted via the Stock Exchange after the initial public offering of shares through the Stock Exchange.

Specifically, the sample regulation clearly states several responsibilities and authorities of the equitized enterprise as follows:

- Appoint representatives to participate in the Investor Capacity Evaluation Council and the Share Auction Council;

- Compile and submit reports to the Steering Committee to the Agency representing the owner's denomination to issue the Decision approving the list of strategic investors eligible to purchase shares;

- Provide documents on the enterprise and related content regarding the share offering to the strategic investor to the equitization steering committee before the share sale;

- Receive deposits, and letters of confirmation from credit institutions regarding the investor's escrow or guarantee to ensure the right to purchase shares;

- Store the Share Purchase Registration Form and Share Auction Participation Form of the strategic investor after the auction session is completed;

- Return deposits, and carry out procedures to release the escrow and guarantees for strategic investors participating in the auction but not winning the right to purchase shares as per regulations;

- Receive payment for share purchases from the successful strategic investors;

- Transfer the proceeds from the share sale to strategic investors to the Fund for Arranging and Developing Enterprises;

- Report to the owner representative agency for review and finalize the official commitment contract with the successful strategic investors;

Within 15 days from the official date of transitioning to a joint-stock company, the equitized enterprise is responsible for registering official information with the Vietnam Securities Depository Center, including information about the share-issuing organization, issued shares; information about the list of organizations, individuals owning shares and the quantity of shares owned, including the number of shares sold to strategic investors, the trade union, and employees.

For more details, see Decision 584/QD-UBCK effective from the date of signing.

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