Vietnam: Procedures for registration of Upcom trading of enterprises that are equitized and are not yet listed

Currently, 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. Specifically, procedures and application for registration of securities trading for the above-mentioned enterprises are guided in Clause 9 Article 1 of Circular No. 13/2019/TT-BTC of the Ministry of Finance of Vietnam as follows:

- Firstly, in case an enterprise is equitized in association with registration, depositing and registration of securities trading according to Decree No. 126/2017/ND-CP of Vietnam’s Government, regulations in Clause 8 Article 7 of Circular No. 40/2018/TT-BTC dated May 04, 2018 by the Minister of Finance providing guidelines for initial share offering and management and use of proceeds from the equitization of state-owned enterprises and single-member limited liability companies with 100% charter capital invested by state-owned enterprises and relevant legislative documents shall apply.

- Secondly, in case an enterprise has completed the equitization and becomes a joint-stock company in accordance with regulations on equitization but does not yet applies for securities trading or is not subject to the above provision, procedures and application for registration, depositing and registration of securities trading shall be carried out according to Clause 2 Article 4 of Circular No. 180/2015/TT-BTC.

- Thirdly, after being granted the Certificate of enterprise registration, the equitized enterprise which operates as a joint-stock company shall carry out procedures for re-registration of information with Vietnam Securities Depository according to regulations on issuance of ticker symbols, registration and depositing of shares of the equitized enterprise, and send summarized enterprise profiles using the form No. 08 provided in the Appendix enclosed with Decree No. 58/2012/ND-CP of Vietnam’s Government and application for change of registration of securities trading as regulated in Article 5 hereof (if any) to Hanoi Stock Exchange.

Notably, the equitized enterprise, after completing procedures for registration of securities trading on the Upcom trading system, must public information in the manner same as that published by a public company.

Hanoi Stock Exchange provides guidance on the trading mechanism and method of equitized enterprises registering for trading in the regulations on organization and management of securities trading of organizations registering for securities trading at Hanoi Stock Exchange upon the approval given by the State Securities Commission of Vietnam.

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

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE