Vietnam: The offering notice must be announced within 07 days

Vietnam: The offering notice must be announced within 07 days (Internet image) 

Specifically, Article 5 of Circular 227/2012/TT-BTC stipulates that the public offering of the investment company is only made after the State Securities Commission of Vietnam issues the Certificate of Share offering registration.

Within 07 days from the date on which the Certificate of Offering registration takes effect, the asset management company shall send the State Securities Commission, and announce, the offering notice as prescribed in Clause 10 Article 3 of Circular 227/2012/TT-BTC. The offering notice must contain the information in the template provided in Annex 02 enclosed with Circular 227/2012/TT-BTC.

The asset management company, distributor, and underwriter (if any) must distribute share of the investment company fairly and openly, provide at least 20 days for investors to register share purchase. This period must be written in the offering notice. Where the number of registered call options exceed the number of offered shares, the asset management company must distribute all the offered shares to investors in proportion to their registered call options.

 All capital contributed by investors must be deposited in a separate account opened at a supervisory bank, and unblocked after the effective date of the License for establishment and operation of the Investment company. The supervisory bank is responsible for paying the investment company an interest equal to at the effective interest rates on demand deposits while the capital is blocked.

Note: The asset management company must finish distributing shares of the investment company within 90 days from the effective date of the Certificate of Public offering registration. If the distribution cannot be done within this period, the asset management company shall send a written request to the State Securities Commission for considering extending the deadline for share distribution.

More details can be found in Circular 227/2012/TT-BTC, which comes into force from July 1, 2013.

Le Vy

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