Conditions for listing, trading securities at foreign Stock Exchanges in Vietnam

Conditions for listing, trading securities at foreign Stock Exchanges in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Conditions for listing, trading securities at foreign Stock Exchanges in Vietnam

Conditions for listing, trading securities at foreign Stock Exchanges in Vietnam according to Article 126 of Decree 155/2020/ND-CP are as follows:

- Foreign parties are not banned from the business lines; foreign ownership ratios are conformable with law.

- The overseas listing of securities is associated with overseas offering of securities.

- There is a decision to approve the listing and trading of securities at the foreign Stock Exchange of the GMS (of the joint stock company) or the Board of Members (of the multiple-member limited liability company) or the company’s owner (of the single-member limited liability company).

- Satisfy the conditions for listing and trading at the foreign Stock Exchange of the country with which the securities market management authority or Stock Exchange has a cooperation agreement with SSC or Stock Exchange of Vietnam.

- Regulations of Vietnam on foreign exchange management are complied with.

- The issuer that engages in conditional business operations shall obtain approval from relevant authorities.

2. Procedures for applying for listing, trading securities at foreign Stock Exchanges in Vietnam 

Procedures for applying for listing, trading securities at foreign Stock Exchanges according to Article 127 of Decree 155/2020/ND-CP are as follows:

- The applicant shall submit the application for overseas listing and trading securities to SSC before submitting the application for listing at the foreign Stock Exchange. The application shall include:

+ The application form No. 34 in the Appendix of Decree 155/2020/ND-CP;

+ Copies of the application for listing at the foreign Stock Exchange;

+ There is a decision on the listing and trading of securities at the foreign Stock Exchange of the GMS (of the joint stock company) or the Board of Members (of the multiple-member limited liability company) or the company’s owner (of the single-member limited liability company).

+ The written approval granted by a relevant authority for conditional business operations;

+ Documents about foreign ownership ratio in the enterprise;

+ The issuer’s commitment to comply with regulations of Vietnam on foreign exchange management.

- Procedures for obtaining approval from SSC

Within 30 working days from the receipt of the satisfactory application, SSC shall decide whether to approve the listing and trading at the foreign Stock Exchange by the Vietnamese issuer, or issue a written rejection and provide explanation.

- In case overseas offering and issuance of securities is associated with overseas listing of securities at a foreign Stock Exchange, the issuer shall submit the documents specified in Clause 1 of Article 127 of Decree 155/2020/ND-CP together with the application for overseas offering and issuance of securities in accordance with Decree 155/2020/ND-CP.

In this case, SSC shall issue a written response by the deadline specified in Clause 2 of Article 127 of Decree 155/2020/ND-CP.

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