Vietnam: Supplementing 02 cases of cancellation of securities trading registration from May 01, 2019

Clause 11 Article 1 of Circular No. 13/2019/TT-BTC of the Ministry of Finance of Vietnam supplements 02 cases of cancellation of securities trading registration applicable from May 01, 2019, specifically as follows:

- The enterprise that is equitized in accordance with regulations on equitization, registers for trading of securities on Upcom trading system and is granted the Certificate of enterprise registration shall have its registration of securities trading after one (01) year commencing from the date on which it fails to meet either capital or shareholder requirements laid down in Point c Clause 1 Article 25 of the Law on Securities of Vietnam or fails to meet both capital and shareholder requirements.

In particular, the date on which the equitized enterprise registering for securities trading fails to meet capital requirements is the date on which it carries out procedures for business registration as a joint-stock company and has its charter capital specified in the Certificate of enterprise registration less than VND 10 billion or the date on which its contributed charter capital is less than VND 10 billion as specified in the audited financial statements of the latest year. The date on which the equitized enterprise registering for securities trading fails to meet shareholder requirements is the date on which it has less than 100 shareholders as certified by Vietnam Securities Depository.

- If the equitized enterprise registering for securities trading on Upcom trading system and granted the Certificate of enterprise registration before the effective date of this Circular fails to meet either capital or shareholder requirements as regulated in Point dd Clause 1 Article 6 of Circular No. 180/2015/TT-BTC, its registration of securities trading shall be canceled within one (01) year from the effective date of this Circular.

In addition to the above 02 cases, according to Circular No. 180/2015/TT-BTC, securities shall be canceled the trading registration in the following 04 cases:

- An organization registering for trading no longer qualifies as a public company under the notice of public company cancellation of the State Securities Commission;

- An organization registering for trading terminates its existence by being required, consolidated, divided, dissolved or bankrupted;

- An organization registering for trading has its certificate of enterprise registration or establishment and operation license in specialized fields revoked;

- An organization registering for trading is approved for listing on the Stock Exchange.

Other provisions 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