Vietnam: Guidance on recall of securities already offered for sale, issued

According to Clause 3 Article 3 Circular No. 217/2013/TT-BTC of the Ministry of Finance of Vietnam, the recall of securities already offered for sale, issued and the refund of amounts used for securities purchase to investors specified at Point a Clause 3 Article 3 of Decree No. 108/2013/NĐ-CP of Vietnam’s Government (forcible recall of securities conducted sale offer, issue and returning the amounts of securities purchase to investors; forcible recall of shares issued additionally) shall perform as follows:

- Within 01 working day, after receiving decisions on sanction of administrative violations, the infringing individuals and organizations must publicize on 01 central newspaper in 03 continuous issues and on websites of their companies about the refund of amounts used for securities sale or deposit (if any) added interests by interest rate of no-term deposit of banks where the infringing individuals and organizations open accounts to collect amounts from securities purchase or deposit.

- Interest of amounts used for securities purchase or deposit which the infringing individuals and organizations must refund to investors shall be calculated from date when investors pay amounts until the infringing individuals and organizations refund them to investors.

- In case where an investor has transferred securities purchased in sale offer mentioned above in a legal method, the infringing individuals and organizations shall determine investors received securities before time of notification about refund of amounts and quantity of securities which are held by such persons to notify such investors.

- The fringing individuals and organizations must report to the State Securities Commission about the result of refund of amounts used for securities purchase to investors, within 03 working days after finishing the refund to investors.

View other provisions at Circular No. 217/2013/TT-BTC of the Ministry of Finance of Vietnam, effective from March 01, 2014.

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