Vietnam: When does the securities companies have to disclose information within 24 hours?

Specifically, according to Article 23 of the Circular No. 96/2020/TT-BTC of the Ministry of Finance of Vietnam, securities companies, securities investment fund management companies and branches of foreign securities companies and foreign fund management companies in Vietnam shall disclose information on an ad hoc basis as prescribed in Article 15 of this Circular and within 24 hours from the occurrence of any of the following events:

- The State Securities Commission of Vietnam (SSC) issues a decision to impose penalties for administrative violations against regulations on securities and securities market upon the company, branch or its certified securities professional; General Director (Director), Deputy General Director (Deputy Director) has his/her securities professional certification suspended or revoked;

- There is a charge or decision on detention or criminal prosecution against a certified securities professional of the company or branch;

- SSC issues a decision to put the company under alert, control or special control, revokes such decision; SSC issues a decision to suspend or terminate the company's operation or cancels such decision;

- SSC issues a decision to approve the establishment, closure, change of name or relocation of a branch, transaction office or representative office in Vietnam or a foreign country; changes in business lines of a branch; establishment of an overseas subsidiary; indirect outward investment;

- SSC issues a decision to approve the provision of online securities trading services; provision or cooperation with credit institutions granting loans for purchase of securities or securities lending; provision or cooperation with credit institutions in advancing payment for securities; securities depository; clearing and payment for securities; provision of other derivative-related services;

- SSC issues a decision on offering or listing of securities in a foreign country;

- Completion of the transfer of shares or stakes to become a shareholder or contributing member holding at least 10% of contributed charter capital of a securities company that is not a public company; transactions that alter the ownership of shares or stakes making up at least 10% of the charter capital, or transactions that fluctuate the ownership ratio of shareholders or contributing members above or below 10%, 25%, 50%, 75% of the charter capital of a fund management company that is not a public company;

- The securities company voluntarily terminates or suspends provision of one of securities trading operations, products and services;

- The securities company faces an information technology incident that affects the conduct of securities transactions for clients.

View more details at the Circular No. 96/2020/TT-BTC of the Ministry of Finance of Vietnam, effective from January 01, 2021.

Le Vy

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