Cases of suspension of trading in unlisted securities in Vietnam

Cases of suspension of trading in unlisted securities in Vietnam (Internet image)

1. Cases of suspension of trading in unlisted securities in Vietnam

According to Clause 1, Article 36 of the Regulation on Registration and Management of Transactions of Unlisted Securities issued together with Decision 34/QD-HDTV dated November 16, 2022 of the Vietnam Stock Exchange, Shares registered for trading shall be suspended from trading when one of the following cases occurs:

(1) Organizations registered for trading are handled for violations of the prohibited acts specified in Clauses 1, 2, 3, 7 Article 12 of the Law on Securities;

(2) Transaction registration organizations forged transaction registration documents;

(3) Transaction registration organization means a company whose compulsory listing has been delisted according to the provisions of Points k, l, Clause 1, Article 120 of Decree 155/2020/ND-CP;

(4) The price, trading volume of shares has abnormal fluctuations as prescribed at point d, clause 1, Article 46 of the Law on Securities;

(5) The transaction registration organization seriously violates the information disclosure obligation; transaction registration organization means a company whose compulsory listing has been delisted due to a serious breach of the obligation to disclose information,

Or the company is forced to delist because the Stock Exchange or the State Securities Commission considers it necessary to delist to protect the interests of investors as prescribed at point o, clause 1, Article 120 of Decree 155/2020/ND-CP;

(6) The trading registration organization does not take measures to remedy the causes leading to the stock being placed under warning or restricted from trading according to the provisions of Point d, Clause 1, Article 46 of the Law on Securities;

(7) At the request of the SSC;

(8) The HNX considers it necessary to protect the legitimate rights and interests of investors and to ensure the stability and safety of the securities market according to the provisions of Point d, Clause 1, Article 46 of the Law on Securities. The HNX reports to the VNSSC after putting stocks into suspension of trading in this case.

Within 05 working days from the date of detecting the above cases, the HNX will issue the Decision to put the shares in the category of trading suspension.

The HNX displays the trading suspension symbol according to Appendix III issued together with the Regulations issued together with Decision 34/QD-HDTV, and reports to the SSC within 24 hours from the date of application of the trading suspension measure above and disclose information on the suspension of trading in accordance with the securities law.

(Clause 2, Article 36 of the Regulation promulgated together with Decision 34/QD-HDTV)

2. When can unlisted securities be released from the trading suspension in Vietnam?

Within 15 working days from the date a stock is suspended from trading as prescribed in (4), (5), item 1, the trading registration organization must send a document to the HNX explaining the reason and giving a plan to overcome the situation of suspension of transactions (if any). This regulation does not apply in the case where the suspension of trading according to the market circuit breaker mechanism is automatically installed on the trading system.

The HNX publishes information on the explanation of the cause, and the plan to overcome the situation of restricted shares in the trading registration organization.

The HNX will remove the shares from the category of suspending trading or changing the status of shares on the basis of a written request from the organization registering for trading, together with documents proving that this organization has completely overcome the causes leading to the transaction. Stocks are suspended from trading.

In the case specified in (6), item 1, a written opinion from the State Securities Commission is required on the removal of stocks from the subject of trading suspension.

Within 05 working days from the date the trading registration organization reports to the HNX on remedying the causes leading to the above-mentioned suspended shares, the HNX shall issue a Decision to remove the shares from the suspension. trade or change stock status.

The HNX removes (or changes the symbol) and discloses information in accordance with the securities law.

(Clause 3, 4, 5, Article 36 of Regulation issued together with Decision 34/QD-HDTV)

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