Vietnam: The remedial measures of securities-trading organization putting under special control

Specifically, according to Article 15 of the Circular No. 91/2020/TT-BTC of the Ministry of Finance of Vietnam, within fifteen (15) days from the day on which the State Securities Commission of Vietnam (SSC) issues the decision to place a securities-trading organization under control, the securities-trading organization shall submit a detailed report on financial condition, reasons and remediation plan to the SSC. The remediation plan shall cover the next 02 years with specific roadmap, conditions and deadline for each month and quarter. The SSC may request the securities-trading organization to make adjustments to the remediation plan at any time if it is unfeasible or inconsistent with market conditions or regulations of law.

Particularly, the remedial measures include:

- Sale of high-risk assets; restriction on or cessation of the purchase of treasury stock;

- Recovery of debts; resale of shares or stake to the creditor;

- Reduction of operating and corporate governance costs; reorganization of the management apparatus and human resources or staff reduction;

- Narrowing of the operation scope and area; shutdown of some branches or transaction offices; reduction of securities services;

- Suspension of the payment of stock dividends and distribution of profits; increase of capital in accordance with law;

- Consolidation into or merger with a securities-trading organization conducting the same business line or of the same type in accordance with law;

- Other measures that are not contrary to regulations of law.

View more details at the Circular No. 91/2020/TT-BTC of the Ministry of Finance of Vietnam, effective from January 01, 2021.

Le Vy

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