Vietnam: Enterprises that are equitized and are not yet listed on the Stock Exchange must carry out registration of securities trading on Upcom

Currently, “registration of securities trading" means the act of putting securities of public companies and enterprises equitized in accordance with regulations on equitization into trading on the Upcom trading system.

According to Clause 3 Article 1 of Circular No. 13/2019/TT-BTC of the Ministry of Finance of Vietnam, which amends Point d Clause 1 Article 3 of Circular No. 180/2015/TT-BTC, enterprises that are equitized in accordance with regulations on equitization and are not yet listed on the Stock Exchange must carry out registration of trading of their securities on the Upcom trading system.

In addition to the enterprises that are not yet listed mentioned above, Circular No. 180/2015/TT-BTC also stipulates other entities of Upcom trading registration, such as:

- Each public company not fully meeting the listing requirements must register for trading in the Upcom system;

- Each public company fully meeting the listing requirements but having their securities unlisted at the Stock Exchange (SE) must register for trading in the Upcom system;

- Each delisted public company fully meeting the requirements for a public company must register for trading in the Upcom system (including the case of delisting because the consolidated company or acquired company does not meet the listing requirements).

Deadlines for Upcom trading registration are prescribed as follows:

- Within 30 days from the date on which the State Securities Commission (SSC) issues an official dispatch certifying the registration of the public company as prescribed in Article 34 of Decree No. 58/2012/ND-CP of Vietnam’s Government, the public company must complete the securities registration at the Vietnam Securities Depository (VSD) and register for trading in the Upcom system;

- Within thirty (30) days from the end of the public offering as regulated in the Law on securities, public companies that have their securities unlisted must complete procedures for registration of securities at VSD and registration of securities trading on the Upcom trading system;

- Within 10 working days from the effective date of the delisting, the SE must cooperate with the VSD in registration of stocks of the delisted company being a public company. Those regulations apply to delisted securities, including mandatory delisting, voluntary delisting and the delisting due to the failure of meeting the listing requirements of the consolidated company or the acquired company;

- Within 6 months from the date on which the Certificate of Enterprise registration is issued, if the consolidated company from consolidating companies including the listed company fails to meet the listing requirements, it must complete the trading registration;

- Enterprises that are equitized in accordance with regulations on equitization and have their securities unlisted on the Stock Exchange shall carry out registration, depositing and registration of securities trading by the deadlines prescribed in Clause 5 Article 4 of Circular No. 180/2015/TT-BTC.

More details can be found in Circular No. 13/2019/TT-BTC of the Ministry of Finance of Vietnam, which takes effect from May 01, 2019.

Thu Ba

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