Tìm kiếm
Chương IV Nghị định 155/2020/NĐ-CP: Đăng ký chứng khoán, bù trừ và thanh toán giao dịch chứng khoán, thành viên của tổng công ty lưu ký và bù trừ chứng khoán Việt Nam, tổ chức mở tài khoản trực tiếp, ngân hàng thanh toán
| Số hiệu: | 155/2020/NĐ-CP | Loại văn bản: | Nghị định |
| Nơi ban hành: | Chính phủ | Người ký: | Nguyễn Xuân Phúc |
| Ngày ban hành: | 31/12/2020 | Ngày hiệu lực: | 01/01/2021 |
| Ngày công báo: | 15/01/2021 | Số công báo: | Từ số 45 đến số 46 |
| Lĩnh vực: | Vi phạm hành chính | Tình trạng: | Còn hiệu lực |
TÓM TẮT VĂN BẢN
Danh sách Nghị định, Thông tư hướng dẫn Luật Chứng khoán 2019 (tính đến ngày 31/12/2020):
1. Nghị định 155/2020/NĐ-CP quy định chi tiết thi hành một số điều của Luật Chứng khoán có hiệu lực từ ngày 01/01/2021.
2. Nghị định 153/2020/NĐ-CP quy định về chào bán, giao dịch trái phiếu doanh nghiệp riêng lẻ tại thị trường trong nước và chào bán trái phiếu doanh nghiệp ra thị trường quốc tế có hiệu lực từ ngày 01/01/2021.
3. Nghị định 156/2020/NĐ-CP quy định về xử phạt vi phạm hành chính trong lĩnh vực chứng khoán và thị trường chứng khoán có hiệu lực từ ngày 01/01/2021.
4. Nghị định 158/2020/NĐ-CP quy định về chứng khoán phái sinh và thị trường chứng khoán phái sinh có hiệu lực từ ngày 01/01/2021.
5. Thông tư 91/2020/TT-BTC quy định về chỉ tiêu an toàn tài chính và biện pháp xử lý đối với tổ chức kinh doanh chứng khoán không đáp ứng chỉ tiêu an toàn tài chính có hiệu lực từ ngày 01/01/2021.
6. Thông tư 95/2020/TT-BTC hướng dẫn về giám sát giao dịch chứng khoán trên thị trường chứng khoán có hiệu lực từ ngày 01/01/2021.
7. Thông tư 96/2020/TT-BTC hướng dẫn công bố thông tin trên thị trường chứng khoán có hiệu lực từ ngày 01/01/2021.
8. Thông tư 97/2020/TT-BTC hướng dẫn hoạt động của văn phòng đại diện, chi nhánh công ty chứng khoán, công ty quản lý quỹ nước ngoài tại Việt Nam có hiệu lực từ ngày 01/01/2021.
9. Thông tư 98/2020/TT-BTC hướng dẫn hoạt động và quản lý quỹ đầu tư chứng khoán có hiệu lực từ ngày 01/01/2021.
10. Thông tư 99/2020/TT-BTC hướng dẫn về hoạt động của công ty quản lý quỹ đầu tư chứng khoán có hiệu lực từ ngày 01/01/2021.
Văn bản tiếng việt
Nghị định 155/2020/NĐ-CP (Bản Word)
Nghị định 155/2020/NĐ-CP (Bản Pdf)
Văn bản tiếng anh
1. Các loại chứng khoán phải thực hiện đăng ký tại Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam bao gồm:
a) Cổ phiếu niêm yết, đăng ký giao dịch trên hệ thống giao dịch chứng khoán;
b) Chứng chỉ quỹ, chứng quyền có bảo đảm, công cụ nợ của Chính phủ, trái phiếu được Chính phủ bảo lãnh, trái phiếu chính quyền địa phương và các loại trái phiếu doanh nghiệp khác niêm yết trên hệ thống giao dịch chứng khoán;
c) Chứng khoán của công ty đại chúng và các loại chứng khoán phải đăng ký tại Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam theo quy định của pháp luật.
2. Các loại chứng khoán khác được đăng ký tại Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam trên cơ sở thỏa thuận giữa Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam và tổ chức phát hành.
3. Chứng khoán quy định tại khoản 1, khoản 2 Điều này được đăng ký tại Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam theo hình thức bút toán ghi sổ hoặc dữ liệu điện tử.
4. Công ty đại chúng phải thực hiện đăng ký cổ phiếu tại Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam trong thời hạn 15 ngày kể từ ngày Ủy ban Chứng khoán Nhà nước xác nhận hoàn tất việc đăng ký công ty đại chúng.
5. Bộ trưởng Bộ Tài chính hướng dẫn chi tiết hoạt động đăng ký chứng khoán, hủy đăng ký chứng khoán, cấp mã chứng khoán, thực hiện quyền của người sở hữu chứng khoán, chuyển quyền sở hữu chứng khoán và các hoạt động khác liên quan đến hoạt động đăng ký chứng khoán tại Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam.
1. Hoạt động bù trừ và thanh toán giao dịch chứng khoán theo cơ chế đối tác bù trừ trung tâm áp dụng đối với hoạt động bù trừ và thanh toán giao dịch chứng khoán niêm yết, đăng ký giao dịch thực hiện trên hệ thống giao dịch chứng khoán, ngoại trừ hoạt động bù trừ, thanh toán giao dịch công cụ nợ.
2. Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam thực hiện thế vị, bù trừ và xác định nghĩa vụ thanh toán giao dịch chứng khoán cho các thành viên bù trừ căn cứ vào kết quả giao dịch hợp lệ do Sở giao dịch chứng khoán cung cấp.
3. Việc thanh toán chuyển giao chứng khoán tại Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam và thanh toán tiền tại ngân hàng thanh toán được thực hiện trên cơ sở nghĩa vụ thanh toán chứng khoán và tiền do Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam xác định.
4. Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam chịu trách nhiệm đảm bảo thanh toán giao dịch chứng khoán của thành viên bù trừ thông qua cơ chế ký quỹ và các biện pháp phòng ngừa rủi ro theo quy định pháp luật.
5. Bộ trưởng Bộ Tài chính hướng dẫn triển khai hoạt động bù trừ và thanh toán giao dịch chứng khoán theo cơ chế đối tác bù trừ trung tâm.
1. Là công ty chứng khoán, ngân hàng thương mại, chi nhánh ngân hàng nước ngoài được Ủy ban Chứng khoán Nhà nước cấp Giấy chứng nhận đăng ký hoạt động lưu ký chứng khoán. Ngân hàng thương mại, chi nhánh ngân hàng nước ngoài phải đồng thời đáp ứng quy định về cung cấp dịch vụ bù trừ, thanh toán giao dịch chứng khoán theo quy định của pháp luật về các tổ chức tín dụng.
2. Đáp ứng các điều kiện về vốn điều lệ, vốn chủ sở hữu như sau:
a) Đối với thành viên bù trừ trực tiếp: Có vốn điều lệ, vốn chủ sở hữu tối thiểu 1.000 tỷ đồng (đối với ngân hàng thương mại, chi nhánh ngân hàng nước ngoài) hoặc tối thiểu 250 tỷ đồng (đối với công ty chứng khoán);
b) Đối với thành viên bù trừ chung: Có vốn điều lệ, vốn chủ sở hữu tối thiểu 7.000 tỷ đồng (đối với ngân hàng thương mại, chi nhánh ngân hàng nước ngoài) hoặc tối thiểu 900 tỷ đồng (đối với công ty chứng khoán).
3. Đáp ứng tỷ lệ an toàn tài chính như sau:
a) Đối với công ty chứng khoán: trích lập đầy đủ các khoản dự phòng theo quy định, hệ số nợ trên vốn chủ sở hữu trên báo cáo tài chính năm gần nhất không quá 05 lần và tỷ lệ vốn khả dụng đạt tối thiểu 260% liên tục trong 12 tháng gần nhất trước tháng nộp hồ sơ đề nghị cấp Giấy chứng nhận đủ điều kiện cung cấp dịch vụ bù trừ, thanh toán giao dịch chứng khoán;
b) Đối với ngân hàng thương mại, chi nhánh ngân hàng nước ngoài: đáp ứng tỷ lệ an toàn vốn tối thiểu theo quy định của pháp luật về các tổ chức tín dụng trong 12 tháng gần nhất trước tháng nộp hồ sơ đề nghị cấp Giấy chứng nhận đủ điều kiện cung cấp dịch vụ bù trừ, thanh toán giao dịch chứng khoán.
4. Việc thực hiện hoạt động cung cấp dịch vụ bù trừ, thanh toán giao dịch chứng khoán được Đại hội đồng cổ đông hoặc Hội đồng thành viên hoặc chủ sở hữu công ty thông qua.
5. Tổ chức đăng ký cung cấp dịch vụ không đang trong quá trình tổ chức lại, giải thể, phá sản hoặc tình trạng kiểm soát, kiểm soát đặc biệt, đình chỉ hoạt động, tạm ngừng hoạt động theo quyết định của cơ quan có thẩm quyền.
1. Hồ sơ đề nghị cấp Giấy chứng nhận đủ điều kiện cung cấp dịch vụ bù trừ, thanh toán giao dịch chứng khoán bao gồm:
a) Giấy đề nghị cấp Giấy chứng nhận đủ điều kiện cung cấp dịch vụ bù trừ, thanh toán giao dịch chứng khoán theo Mẫu số 45 Phụ lục ban hành kèm theo Nghị định này;
b) Quyết định của Đại hội đồng cổ đông hoặc Hội đồng thành viên hoặc chủ sở hữu công ty về việc thực hiện hoạt động cung cấp dịch vụ bù trừ, thanh toán giao dịch chứng khoán;
c) Báo cáo tài chính năm gần nhất được kiểm toán và báo cáo tài chính bán niên gần nhất được soát xét; báo cáo tỷ lệ an toàn tài chính trong 12 tháng gần nhất (đối với công ty chứng khoán) hoặc văn bản cam kết về việc đáp ứng tỷ lệ an toàn vốn tối thiểu theo quy định của pháp luật về các tổ chức tín dụng trong 12 tháng gần nhất (đối với ngân hàng thương mại, chi nhánh ngân hàng nước ngoài);
d) Văn bản chấp thuận của Ngân hàng Nhà nước Việt Nam về việc ngân hàng thương mại, chi nhánh ngân hàng nước ngoài đáp ứng quy định về cung cấp dịch vụ bù trừ, thanh toán giao dịch chứng khoán theo quy định của pháp luật về các tổ chức tín dụng.
2. Trong thời hạn 15 ngày kể từ ngày nhận được hồ sơ đầy đủ và hợp lệ, Ủy ban Chứng khoán Nhà nước cấp Giấy chứng nhận đủ điều kiện cung cấp dịch vụ bù trừ, thanh toán giao dịch chứng khoán; trường hợp từ chối, phải trả lời bằng văn bản và nêu rõ lý do.
1. Ủy ban Chứng khoán Nhà nước quyết định đình chỉ tối đa 12 tháng đối với hoạt động cung cấp dịch vụ bù trừ, thanh toán giao dịch chứng khoán trong các trường hợp sau:
a) Hồ sơ đề nghị cấp Giấy chứng nhận đủ điều kiện cung cấp dịch vụ bù trừ, thanh toán giao dịch chứng khoán có tài liệu giả mạo hoặc có thông tin sai sự thật;
b) Hoạt động kinh doanh sai mục đích, không đúng với hoạt động kinh doanh đã được cấp Giấy chứng nhận đủ điều kiện cung cấp dịch vụ bù trừ, thanh toán giao dịch chứng khoán;
c) Không đáp ứng điều kiện quy định tại khoản 5 Điều 151 Nghị định này; không đáp ứng điều kiện quy định tại khoản 2, khoản 3 Điều 151 Nghị định này trong 06 tháng liên tiếp;
d) Các trường hợp bị đình chỉ hoạt động cung cấp dịch vụ bù trừ, thanh toán giao dịch chứng khoán khác cần thiết để bảo vệ quyền lợi của nhà đầu tư.
2. Ủy ban Chứng khoán Nhà nước chấm dứt hoạt động cung cấp dịch vụ bù trừ, thanh toán giao dịch chứng khoán trong các trường hợp sau:
a) Bị thu hồi Giấy phép thành lập và hoạt động, Giấy chứng nhận đăng ký hoạt động lưu ký chứng khoán hoặc Ngân hàng Nhà nước Việt Nam có văn bản về việc ngân hàng thương mại, chi nhánh ngân hàng nước ngoài không đáp ứng quy định về cung cấp dịch vụ bù trừ, thanh toán giao dịch chứng khoán theo quy định của pháp luật về các tổ chức tín dụng;
b) Không thực hiện đăng ký thành viên bù trừ trong thời hạn 12 tháng kể từ ngày được Ủy ban Chứng khoán Nhà nước cấp Giấy chứng nhận đủ điều kiện cung cấp dịch vụ bù trừ, thanh toán giao dịch chứng khoán;
c) Kết thúc thời hạn Ủy ban Chứng khoán Nhà nước đình chỉ hoạt động bù trừ, thanh toán giao dịch chứng khoán mà vẫn không khắc phục được các vi phạm dẫn tới bị đình chỉ;
d) Tự nguyện chấm dứt hoạt động.
1. Đối với trường hợp quy định tại điểm a khoản 2 Điều 153 Nghị định này, Ủy ban Chứng khoán Nhà nước ra quyết định thu hồi Giấy chứng nhận đủ điều kiện cung cấp dịch vụ bù trừ, thanh toán giao dịch chứng khoán đồng thời khi ra quyết định thu hồi Giấy phép thành lập và hoạt động, Giấy chứng nhận đăng ký hoạt động lưu ký chứng khoán. Đối với ngân hàng thương mại, chi nhánh ngân hàng nước ngoài, Ủy ban Chứng khoán Nhà nước ra quyết định thu hồi Giấy chứng nhận đủ điều kiện cung cấp dịch vụ bù trừ, thanh toán giao dịch chứng khoán ngay sau khi nhận được văn bản của Ngân hàng Nhà nước Việt Nam về việc ngân hàng thương mại, chi nhánh ngân hàng nước ngoài không đáp ứng quy định về cung cấp dịch vụ bù trừ, thanh toán giao dịch chứng khoán theo quy định của pháp luật về các tổ chức tín dụng.
2. Đối với trường hợp quy định tại điểm b khoản 2 Điều 153 Nghị định này, Ủy ban Chứng khoán Nhà nước quyết định thu hồi Giấy chứng nhận đủ điều kiện cung cấp dịch vụ bù trừ, thanh toán giao dịch chứng khoán trong thời hạn 03 ngày làm việc kể từ ngày kết thúc thời hạn quy định tại điểm b khoản 2 Điều 153 Nghị định này.
3. Đối với trường hợp quy định tại điểm c khoản 2 Điều 153 Nghị định này:
a) Trong thời hạn 30 ngày kể từ ngày xảy ra sự kiện, Ủy ban Chứng khoán Nhà nước có văn bản yêu cầu công ty chứng khoán, ngân hàng thương mại, chi nhánh ngân hàng nước ngoài chấm dứt hoạt động cung cấp dịch vụ bù trừ, thanh toán giao dịch chứng khoán;
b) Sau khi Ủy ban Chứng khoán Nhà nước có văn bản theo quy định tại điểm a khoản này, công ty chứng khoán, ngân hàng thương mại, chi nhánh ngân hàng nước ngoài có trách nhiệm công bố thông tin về việc chấm dứt hoạt động bù trừ, thanh toán giao dịch chứng khoán trong thời hạn 24 giờ và thực hiện các thủ tục để chấm dứt hoạt động bù trừ, thanh toán giao dịch chứng khoán theo quy định tại khoản 2 Điều 163 Nghị định này;
c) Trong thời hạn 05 ngày làm việc kể từ ngày hoàn tất các thủ tục chấm dứt hoạt động cung cấp dịch vụ bù trừ, thanh toán giao dịch chứng khoán, công ty chứng khoán, ngân hàng thương mại, chi nhánh ngân hàng nước ngoài nộp hồ sơ báo cáo Ủy ban Chứng khoán Nhà nước kết quả thực hiện, kèm theo quyết định thu hồi Giấy chứng nhận thành viên bù trừ của Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam;
d) Trong thời hạn 07 ngày làm việc kể từ ngày nhận được hồ sơ báo cáo kết quả, Ủy ban Chứng khoán Nhà nước quyết định thu hồi Giấy chứng nhận đủ điều kiện cung cấp dịch vụ bù trừ, thanh toán giao dịch chứng khoán.
4. Trong thời hạn 24 giờ kể từ khi nhận được quyết định thu hồi Giấy chứng nhận đủ điều kiện cung cấp dịch vụ bù trừ, thanh toán giao dịch chứng khoán của Ủy ban Chứng khoán Nhà nước, công ty chứng khoán, ngân hàng thương mại, chi nhánh ngân hàng nước ngoài có trách nhiệm công bố quyết định thu hồi Giấy chứng nhận đủ điều kiện cung cấp dịch vụ bù trừ, thanh toán giao dịch chứng khoán.
1. Hồ sơ chấm dứt hoạt động cung cấp dịch vụ bù trừ, thanh toán giao dịch chứng khoán tự nguyện bao gồm:
a) Giấy đề nghị chấm dứt hoạt động cung cấp dịch vụ bù trừ, thanh toán giao dịch chứng khoán theo Mẫu số 46 Phụ lục ban hành kèm theo Nghị định này;
b) Quyết định của Đại hội đồng cổ đông hoặc Hội đồng thành viên hoặc chủ sở hữu công ty về việc chấm dứt hoạt động cung cấp dịch vụ bù trừ, thanh toán giao dịch chứng khoán;
c) Quyết định thu hồi Giấy chứng nhận thành viên bù trừ của Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam;
d) Báo cáo kết quả thực hiện chấm dứt hoạt động cung cấp dịch vụ bù trừ, thanh toán giao dịch chứng khoán.
2. Trong thời hạn 07 ngày làm việc kể từ ngày nhận được hồ sơ đầy đủ và hợp lệ, Ủy ban Chứng khoán Nhà nước ra quyết định thu hồi Giấy chứng nhận đủ điều kiện cung cấp dịch vụ bù trừ, thanh toán giao dịch chứng khoán.
1. Đối với hoạt động bù trừ và thanh toán giao dịch chứng khoán
a) Tổ chức hoạt động bù trừ, thanh toán giao dịch chứng khoán theo cơ chế đối tác bù trừ trung tâm;
b) Thiết lập, vận hành hệ thống quản trị rủi ro và xây dựng cơ chế bảo đảm thanh toán cho hoạt động bù trừ, thanh toán giao dịch chứng khoán;
c) Quản lý tài khoản, tài sản ký quỹ bù trừ để đảm bảo cho việc thanh toán giao dịch chứng khoán; yêu cầu thành viên bù trừ ký quỹ, xác định, điều chỉnh mức ký quỹ và danh mục tài sản được chấp nhận ký quỹ;
d) Thiết lập hệ thống bảo đảm việc quản lý tách biệt tài khoản, tài sản của Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam với tài khoản, tài sản của thành viên bù trừ; tách biệt tài khoản, tài sản của từng thành viên bù trừ; tách biệt tài khoản, tài sản của thành viên bù trừ và các khách hàng của chính thành viên bù trừ; tách biệt tài khoản và tài sản ký quỹ bù trừ với thị trường chứng khoán phái sinh; cung cấp dịch vụ quản lý tài khoản, tài sản ký quỹ bù trừ cho thành viên bù trừ và khách hàng;
đ) Từ chối thế vị đối với các giao dịch bán chứng khoán khi chưa sở hữu không đúng quy định của pháp luật, giao dịch của thành viên bù trừ và thành viên giao dịch không bù trừ ủy thác bù trừ, thanh toán giao dịch chứng khoán qua thành viên bù trừ thực hiện sau khi đề nghị Sở giao dịch chứng khoán đình chỉ hoạt động giao dịch của các thành viên này và các giao dịch không hợp lệ khác theo quy định của Bộ Tài chính;
e) Đề nghị Sở giao dịch chứng khoán đình chỉ giao dịch đối với thành viên giao dịch là thành viên bù trừ mất khả năng thanh toán giao dịch chứng khoán và thành viên giao dịch không bù trừ ủy thác bù trừ, thanh toán giao dịch chứng khoán qua thành viên bù trừ đó;
g) Chỉ chịu trách nhiệm thực hiện nghĩa vụ, cam kết đối với thành viên bù trừ và không chịu trách nhiệm với bên thứ ba trong hoạt động bù trừ giao dịch chứng khoán. Là chủ nợ đối với các khoản phải thu của thành viên bù trừ bị giải thể, phá sản, được ưu tiên phân chia tài sản theo quy định pháp luật về giải thể, phá sản;
h) Sử dụng, bán, chuyển giao chứng khoán hiện có, chứng khoán chờ về từ các giao dịch mua trước đó trên các tài khoản tự doanh, tạo lập thị trường của thành viên bù trừ mất khả năng thanh toán tiền, chứng khoán chờ về từ các giao dịch mua thiếu tiền trước đó trên tài khoản của nhà đầu tư mất khả năng thanh toán tiền để hoàn trả các nguồn hỗ trợ đã sử dụng và bù đắp các chi phí phát sinh có liên quan;
i) Trong trường hợp không thể bán, sử dụng, chuyển giao chứng khoán hiện có, chứng khoán chờ về theo quy định tại điểm h khoản này hoặc số tiền thu được từ việc bán, sử dụng, chuyển giao không đủ để hoàn trả các nguồn hỗ trợ và bù đắp các chi phí phát sinh liên quan, Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam được sử dụng tiền thu được từ các giao dịch bán chứng khoán khác, hoạt động thực hiện quyền cho người sở hữu chứng khoán của chính thành viên bù trừ mất khả năng thanh toán tiền để hoàn trả và bù đắp;
k) Chỉ định thành viên bù trừ khác thực hiện giao dịch đối ứng đối với các giao dịch của thành viên bù trừ mất khả năng thanh toán giao dịch chứng khoán;
l) Chỉ định thành viên bù trừ thay thế để hoàn tất các nghĩa vụ của thành viên bù trừ mất khả năng thanh toán giao dịch chứng khoán; được chuyển giao dịch chứng khoán chưa hoàn tất thanh toán và tài sản liên quan đến giao dịch đó tới thành viên bù trừ thay thế để hoàn tất các nghĩa vụ của thành viên bù trừ;
m) Sử dụng, bán, chuyển giao tài sản ký quỹ bù trừ của thành viên bù trừ, nhà đầu tư mất khả năng thanh toán giao dịch chứng khoán, tài sản đóng góp quỹ bù trừ của thành viên bù trừ và nguồn vốn hợp pháp của Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam để thực hiện các nghĩa vụ của thành viên bù trừ mất khả năng thanh toán giao dịch chứng khoán và bù đắp các thiệt hại tài chính của Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam phát sinh từ các giao dịch chứng khoán mất khả năng thanh toán theo quy định pháp luật và quy chế nghiệp vụ của Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam;
n) Thiết lập hệ thống tài khoản thanh toán giao dịch chứng khoán tách biệt với hệ thống tài khoản ký quỹ bù trừ;
o) Xây dựng hệ thống cơ sở vật chất, kỹ thuật để thực hiện việc thanh toán giao dịch chứng khoán và kết nối với hệ thống của Ngân hàng thanh toán để đảm bảo hoàn tất việc thanh toán giao dịch chứng khoán theo quy định khoản 2 Điều 63 Luật Chứng khoán;
p) Thực hiện các quyền và nghĩa vụ khác liên quan đến bù trừ và thanh toán giao dịch chứng khoán theo quy định pháp luật.
2. Đối với hoạt động quản lý thành viên bù trừ và quỹ bù trừ
a) Chấp thuận, hủy bỏ tư cách thành viên bù trừ, đình chỉ hoạt động bù trừ, thanh toán giao dịch chứng khoán của thành viên bù trừ;
b) Kiểm tra, giám sát thành viên bù trừ trong việc duy trì điều kiện hoạt động theo quy định pháp luật và quy chế liên quan đến hoạt động bù trừ, thanh toán giao dịch chứng khoán;
c) Yêu cầu thành viên bù trừ giải trình, cung cấp tài liệu và thông tin liên quan trong trường hợp phát hiện dấu hiệu bất thường trong bù trừ và thanh toán giao dịch chứng khoán hoặc có dấu hiệu nhà đầu tư, thành viên bù trừ mất khả năng thanh toán giao dịch chứng khoán không có khả năng khắc phục;
d) Quản lý quỹ bù trừ; yêu cầu thành viên bù trừ đóng góp quỹ bù trừ.
3. Trích 5% doanh thu hàng năm từ hoạt động nghiệp vụ đăng ký, lưu ký bù trừ, thanh toán giao dịch chứng khoán để lập quỹ phòng ngừa rủi ro nghiệp vụ để xử lý rủi ro trong quá trình xử lý các nghiệp vụ của Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam. Khoản trích lập này được tính vào chi phí của Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam khi xác định thu nhập chịu thuế. Tổng mức trích quỹ phòng ngừa rủi ro nghiệp vụ lũy kế không quá 30% vốn điều lệ của Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam. Bộ trưởng Bộ Tài chính quy định việc trích lập, quản lý và sử dụng quỹ phòng ngừa rủi ro nghiệp vụ.
4. Báo cáo, kiến nghị Ủy ban Chứng khoán Nhà nước vi phạm của thành viên bù trừ, các biện pháp xử lý, khắc phục sự cố, biến động ảnh hưởng đến hoạt động bù trừ, thanh toán giao dịch chứng khoán, các báo cáo khác theo quy định pháp luật hoặc theo yêu cầu của Ủy ban Chứng khoán Nhà nước hoặc khi phát hiện vi phạm, dấu hiệu bất thường trong hoạt động bù trừ, thanh toán giao dịch chứng khoán.
1. Quyền của thành viên bù trừ
a) Yêu cầu nhà đầu tư đóng góp đầy đủ, kịp thời các khoản ký quỹ trước khi thực hiện giao dịch, xác định phương thức ký quỹ, bổ sung ký quỹ, thay đổi tài sản ký quỹ bù trừ, chuyển giao tài sản ký quỹ bù trừ theo quy định pháp luật;
b) Trong trường hợp nhà đầu tư mất khả năng thanh toán giao dịch chứng khoán, thành viên bù trừ có quyền yêu cầu nhà đầu tư hoặc thành viên bù trừ thực hiện giao dịch đối ứng bắt buộc đối với các giao dịch của nhà đầu tư; sử dụng, bán, chuyển nhượng tài sản ký quỹ bù trừ của nhà đầu tư để mua chứng khoán hoặc làm tài sản bảo đảm cho các khoản vay để thực hiện các nghĩa vụ thanh toán đối với các giao dịch của nhà đầu tư;
c) Được sử dụng, bán, chuyển nhượng tài sản ký quỹ bù trừ của nhà đầu tư để hoàn thành nghĩa vụ thanh toán của nhà đầu tư đó đối với Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam;
d) Được sử dụng, bán, chuyển nhượng tài sản ký quỹ bù trừ của nhà đầu tư nộp cho thành viên bù trừ mất khả năng thanh toán giao dịch chứng khoán trong trường hợp thành viên bù trừ thực hiện nghĩa vụ thanh toán thay thế cho thành viên bù trừ mất khả năng thanh toán giao dịch chứng khoán theo chỉ định của Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam.
2. Nghĩa vụ của thành viên bù trừ
a) Chịu trách nhiệm thực hiện đầy đủ các nghĩa vụ của khách hàng đối với Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam với tư cách là đại diện theo ủy quyền của khách hàng;
b) Ký hợp đồng bù trừ, thanh toán giao dịch chứng khoán với Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam, ký hợp đồng ủy thác bù trừ, thanh toán với thành viên giao dịch không bù trừ, ký hợp đồng phối hợp thực hiện hoạt động giao dịch và bù trừ, thanh toán với ngân hàng lưu ký không làm thành viên bù trừ. Trong hợp đồng phải có điều khoản nêu rõ thành viên bù trừ là đại diện theo ủy quyền của khách hàng, chịu trách nhiệm thực hiện đầy đủ các nghĩa vụ của khách hàng đối với Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam;
c) Thực hiện các biện pháp nghiệp vụ theo quy chế của Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam nhằm đảm bảo khả năng thanh toán giao dịch chứng khoán và bù đắp thiệt hại tài chính (nếu có);
d) Thiết lập và vận hành hệ thống tài khoản để quản lý tách biệt tài sản, giao dịch của từng nhà đầu tư và của nhà đầu tư với thành viên bù trừ; tách biệt tài khoản và tài sản ký quỹ bù trừ với thị trường chứng khoán phái sinh;
đ) Bảo đảm nhà đầu tư có đủ tài sản ký quỹ bù trừ trước khi thực hiện giao dịch và đủ tiền, chứng khoán để thanh toán giao dịch chứng khoán; hoàn trả phần tài sản ký quỹ bù trừ vượt mức ký quỹ yêu cầu theo yêu cầu của nhà đầu tư; giám sát, quản lý giao dịch và tài sản ký quỹ bù trừ của nhà đầu tư bảo đảm tuân thủ quy định pháp luật;
e) Bồi thường thiệt hại cho nhà đầu tư trong trường hợp không thực hiện nghĩa vụ theo quy định pháp luật và gây thiệt hại đến lợi ích hợp pháp của nhà đầu tư;
g) Chuyển giao tài sản ký quỹ bù trừ đang quản lý sang thành viên bù trừ thay thế theo chỉ định của Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam quy định tại điểm l khoản 1 Điều 156 Nghị định này;
h) Lưu giữ đầy đủ các chứng từ gốc về bù trừ, thanh toán giao dịch chứng khoán; cung cấp đầy đủ, kịp thời, chính xác thông tin về giao dịch của nhà đầu tư, tài khoản, tài sản ký quỹ bù trừ của nhà đầu tư, hợp đồng ủy thác bù trừ, thanh toán và các tài liệu khác liên quan tới hoạt động bù trừ, thanh toán giao dịch chứng khoán theo yêu cầu của Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam;
i) Trong thời gian thực hiện thủ tục chấm dứt hoạt động cung cấp dịch vụ bù trừ, thanh toán giao dịch chứng khoán, thành viên bù trừ không thực hiện ký mới, không được gia hạn các hợp đồng với khách hàng để thực hiện hoạt động bù trừ, thanh toán giao dịch chứng khoán; phải thực hiện tất toán, chuyển tài khoản theo yêu cầu của khách hàng (nếu có);
k) Thanh toán đầy đủ, kịp thời các nghĩa vụ tài chính theo quy định của pháp luật;
l) Thực hiện công bố thông tin và báo cáo theo quy định; định kỳ hoặc theo yêu cầu của nhà đầu tư cung cấp đầy đủ thông tin về các hoạt động trên tài khoản, số dư tài khoản, sao kê tài khoản cho nhà đầu tư.
1. Điều kiện trở thành thành viên lưu ký
a) Được Ủy ban Chứng khoán Nhà nước cấp Giấy chứng nhận đăng ký hoạt động lưu ký chứng khoán;
b) Đáp ứng yêu cầu về hạ tầng công nghệ thông tin và quy trình nghiệp vụ liên quan đến hoạt động lưu ký chứng khoán theo quy chế của Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam.
2. Hồ sơ đăng ký trở thành thành viên lưu ký
a) Giấy đăng ký thành viên lưu ký theo Mẫu số 47 Phụ lục ban hành kèm theo Nghị định này;
b) Giấy chứng nhận đăng ký hoạt động lưu ký chứng khoán do Ủy ban Chứng khoán Nhà nước cấp;
c) Bản thuyết minh về hạ tầng công nghệ thông tin, quy trình nghiệp vụ.
3. Trình tự, thủ tục cấp Giấy chứng nhận thành viên lưu ký
a) Trong thời hạn 05 ngày làm việc kể từ ngày nhận được hồ sơ đầy đủ và hợp lệ, Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam gửi văn bản thông báo cho công ty chứng khoán, ngân hàng thương mại, chi nhánh ngân hàng nước ngoài thực hiện việc kết nối với Cổng giao tiếp trực tuyến, thử nghiệm hoạt động lưu ký với Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam;
b) Trường hợp hồ sơ không đầy đủ và hợp lệ, trong thời hạn 05 ngày làm việc kể từ ngày nhận được hồ sơ, Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam gửi văn bản yêu cầu bổ sung hồ sơ;
c) Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam cấp Giấy chứng nhận thành viên lưu ký trong thời hạn 03 ngày làm việc kể từ ngày công ty chứng khoán, ngân hàng thương mại, chi nhánh ngân hàng nước ngoài hoàn tất việc kết nối với Cổng giao tiếp trực tuyến, đạt yêu cầu về thử nghiệm hoạt động lưu ký với Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam.
1. Điều kiện trở thành thành viên bù trừ
a) Được Ủy ban Chứng khoán Nhà nước cấp Giấy chứng nhận đủ điều kiện cung cấp dịch vụ bù trừ, thanh toán giao dịch chứng khoán;
b) Là thành viên lưu ký của Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam;
c) Đáp ứng yêu cầu về hạ tầng công nghệ thông tin, quy trình nghiệp vụ và nhân sự cho hoạt động bù trừ, thanh toán giao dịch chứng khoán theo quy chế của Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam.
2. Hồ sơ đăng ký thành viên bù trừ
a) Giấy đăng ký thành viên bù trừ theo Mẫu số 48 Phụ lục ban hành kèm theo Nghị định này;
b) Giấy chứng nhận đủ điều kiện cung cấp dịch vụ bù trừ, thanh toán giao dịch chứng khoán do Ủy ban Chứng khoán Nhà nước cấp;
c) Bản thuyết minh về hạ tầng công nghệ thông tin, nhân sự, quy trình nghiệp vụ.
3. Trình tự, thủ tục cấp Giấy chứng nhận thành viên bù trừ
a) Trong thời hạn 05 ngày làm việc kể từ ngày nhận được hồ sơ đầy đủ và hợp lệ, Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam gửi văn bản thông báo về việc ký kết hợp đồng và các nghĩa vụ đóng góp của thành viên bù trừ, kết nối vào hệ thống bù trừ, thanh toán giao dịch chứng khoán; trường hợp từ chối, phải trả lời bằng văn bản và nêu rõ lý do;
b) Công ty chứng khoán, ngân hàng thương mại, chi nhánh ngân hàng nước ngoài có trách nhiệm báo cáo Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam về việc hoàn thành các công việc theo thông báo của Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam quy định tại điểm a khoản này, đồng thời gửi kèm Giấy đăng ký tài khoản nhận tiền rút ký quỹ, thanh toán theo Mẫu số 49 Phụ lục ban hành kèm theo Nghị định này;
c) Trong thời hạn 01 ngày làm việc kể từ ngày nhận được các tài liệu quy định tại điểm b khoản này, Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam cấp Giấy chứng nhận thành viên bù trừ cho công ty chứng khoán, ngân hàng thương mại, chi nhánh ngân hàng nước ngoài.
1. Trường hợp có ít nhất 01 công ty chứng khoán, ngân hàng thương mại tham gia hợp nhất là thành viên lưu ký, thành viên bù trừ trước thời điểm hợp nhất hoặc công ty chứng khoán, ngân hàng thương mại nhận sáp nhập không là thành viên lưu ký, thành viên bù trừ nhưng có ít nhất 01 công ty chứng khoán, ngân hàng thương mại bị sáp nhập là thành viên lưu ký, thành viên bù trừ trước thời điểm sáp nhập, điều kiện trở thành thành viên lưu ký, thành viên bù trừ của công ty chứng khoán, ngân hàng thương mại hợp nhất, nhận sáp nhập như sau:
a) Tiếp tục sử dụng hạ tầng công nghệ thông tin cho hoạt động lưu ký chứng khoán của công ty chứng khoán, ngân hàng thương mại là thành viên lưu ký trước thời điểm hợp nhất, sáp nhập (đối với trường hợp đăng ký thành viên lưu ký) hoặc tiếp tục sử dụng hạ tầng công nghệ thông tin cho hoạt động lưu ký chứng khoán, bù trừ, thanh toán giao dịch chứng khoán của công ty chứng khoán, ngân hàng thương mại là thành viên bù trừ trước thời điểm hợp nhất, sáp nhập (đối với trường hợp đăng ký thành viên bù trừ);
b) Đáp ứng điều kiện về nhân sự (đối với trường hợp đăng ký là thành viên bù trừ), quy trình nghiệp vụ theo quy chế của Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam.
2. Trường hợp công ty chứng khoán, ngân hàng thương mại nhận sáp nhập là thành viên lưu ký, thành viên bù trừ trước thời điểm sáp nhập thì được tiếp tục làm thành viên lưu ký, thành viên bù trừ sau khi hoàn thành việc sáp nhập. Trong thời hạn 03 ngày làm việc kể từ ngày được cấp Giấy phép điều chỉnh Giấy phép thành lập và hoạt động, công ty chứng khoán, ngân hàng thương mại nhận sáp nhập phải gửi văn bản thông báo các thay đổi cho Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam.
3. Trường hợp công ty chứng khoán, ngân hàng thương mại hợp nhất, công ty chứng khoán, ngân hàng thương mại nhận sáp nhập không thuộc trường hợp quy định tại khoản 1, khoản 2 Điều này, điều kiện trở thành thành viên lưu ký theo quy định tại khoản 1 Điều 158 Nghị định này, điều kiện trở thành thành viên bù trừ theo quy định tại khoản 1 Điều 159 Nghị định này.
4. Hồ sơ đăng ký thành viên lưu ký, thành viên bù trừ đối với trường hợp quy định tại khoản 1 Điều này bao gồm:
a) Giấy đăng ký thành viên lưu ký theo Mẫu số 47 Phụ lục, Giấy đăng ký thành viên bù trừ theo Mẫu số 48 Phụ lục ban hành kèm theo Nghị định này;
b) Quyết định của Ủy ban Chứng khoán Nhà nước về việc hợp nhất, sáp nhập công ty chứng khoán; quyết định của Ngân hàng Nhà nước Việt Nam về việc hợp nhất, sáp nhập ngân hàng thương mại;
c) Quyết định của Đại hội đồng cổ đông hoặc Hội đồng thành viên hoặc chủ sở hữu công ty của các công ty chứng khoán, ngân hàng thương mại tham gia hợp nhất, sáp nhập thông qua việc hợp nhất, sáp nhập công ty chứng khoán, ngân hàng thương mại;
d) Cam kết của Hội đồng quản trị hoặc Hội đồng thành viên hoặc chủ sở hữu công ty của các công ty chứng khoán, ngân hàng thương mại tham gia hợp nhất, nhận sáp nhập về việc công ty chứng khoán, ngân hàng thương mại hợp nhất, công ty chứng khoán, ngân hàng thương mại nhận sáp nhập tiếp tục sử dụng hạ tầng công nghệ thông tin, quy trình nghiệp vụ cho hoạt động lưu ký chứng khoán của công ty chứng khoán, ngân hàng thương mại thành viên tham gia hợp nhất, sáp nhập (đối với trường hợp đăng ký thành viên lưu ký), hạ tầng công nghệ thông tin, quy trình nghiệp vụ và nhân sự cho hoạt động lưu ký chứng khoán, bù trừ, thanh toán giao dịch chứng khoán của công ty chứng khoán, ngân hàng thương mại thành viên tham gia hợp nhất, sáp nhập (đối với trường hợp đăng ký thành viên bù trừ). Trường hợp có thay đổi về nhân sự (đối với trường hợp đăng ký thành viên bù trừ) và quy trình nghiệp vụ, công ty chứng khoán, ngân hàng thương mại phải bổ sung các tài liệu liên quan, trong đó nêu rõ các nội dung thay đổi.
5. Trình tự, thủ tục đăng ký thành viên lưu ký, thành viên bù trừ đối với trường hợp quy định tại khoản 1 Điều này:
a) Đối với thành viên lưu ký: trong thời hạn 01 ngày làm việc kể từ ngày nhận được hồ sơ đầy đủ và hợp lệ theo quy định tại khoản 4 Điều này và Giấy chứng nhận đăng ký hoạt động lưu ký chứng khoán của công ty chứng khoán, ngân hàng thương mại hợp nhất, nhận sáp nhập do Ủy ban Chứng khoán Nhà nước cấp, Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam cấp Giấy chứng nhận thành viên lưu ký cho công ty chứng khoán, ngân hàng thương mại hợp nhất, nhận sáp nhập;
b) Đối với thành viên bù trừ: trong thời hạn 01 ngày làm việc kể từ ngày nhận được hồ sơ đầy đủ và hợp lệ theo quy định tại khoản 4 Điều này và Giấy chứng nhận đủ điều kiện cung cấp dịch vụ bù trừ, thanh toán giao dịch chứng khoán của công ty chứng khoán, ngân hàng thương mại hợp nhất, nhận sáp nhập do Ủy ban Chứng khoán Nhà nước cấp, Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam cấp Giấy chứng nhận thành viên bù trừ cho công ty chứng khoán, ngân hàng thương mại hợp nhất, nhận sáp nhập.
6. Hồ sơ, trình tự, thủ tục đăng ký thành viên lưu ký, thành viên bù trừ đối với trường hợp quy định tại khoản 3 Điều này thực hiện theo quy định tại các khoản 2, 3 Điều 158, các khoản 2, 3 Điều 159 Nghị định này.
1. Trường hợp thay đổi, bổ sung nhân sự, thành viên phải gửi văn bản thông báo cho Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam trong thời hạn 05 ngày làm việc kể từ ngày việc thay đổi có hiệu lực.
2. Trường hợp thay đổi thông tin về tên, địa chỉ nơi đặt trụ sở chính, người đại diện theo pháp luật, vốn điều lệ
a) Thành viên phải gửi văn bản thông báo cho Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam trong thời hạn 05 ngày làm việc kể từ ngày việc thay đổi có hiệu lực;
b) Trong thời hạn 05 ngày làm việc kể từ ngày nhận được văn bản thông báo thay đổi thông tin, Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam cấp Giấy chứng nhận thành viên lưu ký sửa đổi, Giấy chứng nhận thành viên bù trừ sửa đổi.
3. Trường hợp thay đổi loại thành viên bù trừ từ thành viên bù trừ trực tiếp sang thành viên bù trừ chung hoặc ngược lại, Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam cấp Giấy chứng nhận thành viên bù trừ sửa đổi cho thành viên bù trừ trong thời hạn 03 ngày làm việc kể từ ngày thành viên bù trừ hoàn thành các việc sau:
a) Gửi Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam giấy đề nghị thay đổi loại thành viên bù trừ theo Mẫu số 50 Phụ lục ban hành kèm theo Nghị định này;
b) Nộp bổ sung quỹ bù trừ (trường hợp còn thiếu so với quy định) khi thay đổi từ thành viên bù trừ trực tiếp sang thành viên bù trừ chung;
c) Hoàn tất nghĩa vụ thanh toán giao dịch chứng khoán, hoàn trả tài sản ký quỹ bù trừ trên các tài khoản của thành viên giao dịch không bù trừ và khách hàng của thành viên giao dịch không bù trừ ủy thác (nếu có) trong trường hợp thay đổi từ thành viên bù trừ chung sang thành viên bù trừ trực tiếp.
1. Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam thu hồi Giấy chứng nhận thành viên lưu ký trong các trường hợp sau:
a) Thành viên lưu ký bị thu hồi Giấy chứng nhận đăng ký hoạt động lưu ký chứng khoán theo quy định tại khoản 2 Điều 60 Luật Chứng khoán;
b) Vi phạm nghiêm trọng các quy định về thành viên lưu ký của Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam;
c) Thành viên lưu ký tự nguyện chấm dứt tư cách thành viên lưu ký và có Giấy đề nghị chấm dứt tư cách thành viên lưu ký gửi Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam.
2. Trình tự, thủ tục thu hồi Giấy chứng nhận thành viên lưu ký
a) Trong thời hạn 01 ngày làm việc kể từ ngày nhận được quyết định thu hồi Giấy chứng nhận đăng ký hoạt động lưu ký chứng khoán của Ủy ban Chứng khoán Nhà nước, Giấy đề nghị chấm dứt tư cách thành viên lưu ký của thành viên lưu ký hoặc xảy ra vi phạm dẫn đến việc thu hồi Giấy chứng nhận thành viên lưu ký, Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam ngừng cung cấp dịch vụ mở tài khoản lưu ký chứng khoán, ký gửi chứng khoán, chuyển khoản chứng khoán lưu ký đối với thành viên lưu ký, ngoại trừ các trường hợp chuyển khoản tất toán tài khoản khách hàng, chuyển khoản giải tỏa chứng khoán được dùng làm tài sản bảo đảm, thực hiện quyền cho người sở hữu chứng khoán và điều chỉnh thông tin nhà đầu tư;
b) Việc chuyển khoản tất toán tài khoản khách hàng được thực hiện theo yêu cầu của khách hàng hoặc theo văn bản thỏa thuận, hợp đồng chuyển giao tài khoản giữa thành viên lưu ký bị thu hồi Giấy chứng nhận thành viên lưu ký và thành viên lưu ký khác trong trường hợp không có yêu cầu của khách hàng. Thời hạn chuyển khoản theo yêu cầu của khách hàng và các nội dung liên quan đến chuyển khoản tất toán tài khoản khách hàng, tài khoản tự doanh (nếu có) thực hiện theo quy định tại quy chế của Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam;
c) Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam ra quyết định thu hồi Giấy chứng nhận thành viên lưu ký trong thời hạn 03 ngày làm việc kể từ ngày kết thúc thời hạn chuyển khoản tất toán tài khoản theo quy định tại điểm b khoản này hoặc sau khi thành viên lưu ký báo cáo hoàn tất việc chuyển khoản tất toán tài khoản khách hàng, tài khoản tự doanh (nếu có) và thực hiện đầy đủ các nghĩa vụ tài chính, nghĩa vụ khác với Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam.
1. Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam thu hồi Giấy chứng nhận thành viên bù trừ trong các trường hợp sau:
a) Hết thời hạn Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam đình chỉ hoạt động bù trừ, thanh toán giao dịch chứng khoán mà thành viên bù trừ không khắc phục được vi phạm theo yêu cầu của Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam;
b) Bị Ủy ban Chứng khoán Nhà nước thu hồi Giấy chứng nhận đăng ký hoạt động lưu ký chứng khoán;
c) Bị Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam thu hồi Giấy chứng nhận thành viên lưu ký;
d) Vi phạm nghiêm trọng các quy định về thành viên bù trừ của Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam;
đ) Thành viên bù trừ tự nguyện chấm dứt tư cách thành viên bù trừ và có Giấy đề nghị chấm dứt tư cách thành viên bù trừ gửi Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam.
2. Trình tự, thủ tục thu hồi Giấy chứng nhận thành viên bù trừ
a) Trong thời hạn 01 ngày làm việc kể từ ngày kết thúc thời hạn hoặc xảy ra sự kiện quy định tại khoản 1 Điều này, Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam có văn bản gửi Sở giao dịch chứng khoán và thành viên bù trừ thông báo ngừng cung cấp các dịch vụ liên quan đến hoạt động bù trừ, thanh toán giao dịch chứng khoán cho thành viên bù trừ và thông báo cho thành viên bù trừ các nghĩa vụ tài chính và nghĩa vụ khác của thành viên bù trừ đối với Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam.
Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam, thành viên bù trừ thực hiện thanh toán cho các giao dịch chứng khoán chưa hoàn tất thanh toán hiện có trên tài khoản nhà đầu tư và thành viên bù trừ, hoàn trả tài sản ký quỹ bù trừ cho các giao dịch chứng khoán đã hoàn tất thanh toán;
b) Trong thời hạn 30 ngày kể từ ngày nhận được thông báo của Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam theo quy định tại điểm a khoản này, thành viên bù trừ có trách nhiệm thực hiện đầy đủ các nghĩa vụ theo thông báo của Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam;
c) Trong thời hạn 05 ngày làm việc kể từ ngày thành viên bù trừ hoàn thành nghĩa vụ theo quy định tại điểm b khoản này hoặc kết thúc thời hạn theo quy định tại điểm b khoản này, Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam ra Quyết định thu hồi Giấy chứng nhận thành viên bù trừ và thực hiện công bố thông tin ra thị trường;
d) Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam hoàn trả lại tài sản ký quỹ bù trừ và số tiền, chứng khoán đóng góp vào quỹ bù trừ (bao gồm gốc và lãi quy định tại Quy chế của Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam) sau khi ra Quyết định thu hồi Giấy chứng nhận thành viên bù trừ.
1. Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam đình chỉ tối đa 90 ngày đối với hoạt động bù trừ, thanh toán giao dịch chứng khoán sau khi được Ủy ban Chứng khoán Nhà nước chấp thuận đối với các trường hợp sau:
a) Thường xuyên vi phạm nghĩa vụ của thành viên bù trừ theo quy định của Luật Chứng khoán và quy chế của Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam;
b) Để xảy ra thiếu sót gây thiệt hại nghiêm trọng cho khách hàng;
c) Không đóng góp đủ vào quỹ bù trừ theo yêu cầu trong thời hạn 10 ngày kể từ ngày hết hạn nộp theo thông báo của Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam;
d) Không nộp hoặc nộp không đủ tiền ký quỹ bù trừ 03 lần trong 01 tháng;
đ) Có từ 02 lần trở lên trong 01 tháng hoặc có 01 lần mỗi tháng trong 03 tháng liên tiếp bị Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam ra quyết định khiển trách liên quan đến hoạt động bù trừ, thanh toán giao dịch chứng khoán;
e) Không hoàn trả đủ tiền hỗ trợ thanh toán từ quỹ bù trừ hoặc quỹ phòng ngừa rủi ro nghiệp vụ hoặc nguồn vốn của Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam trong thời hạn 05 ngày làm việc kể từ ngày sử dụng;
g) Mất khả năng thanh toán giao dịch chứng khoán với nghĩa vụ thanh toán thiếu hụt vượt quá tổng số dư tài sản ký quỹ bù trừ có thể sử dụng tại thời điểm xác định mất khả năng thanh toán giao dịch chứng khoán và số dư tài sản đóng góp quỹ bù trừ của chính thành viên bù trừ đó;
h) Không nộp đủ tiền dịch vụ liên quan đến hoạt động bù trừ, thanh toán giao dịch chứng khoán theo quy định pháp luật cho Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam trong thời hạn 30 ngày kể từ ngày hết hạn nộp theo thông báo;
i) Các trường hợp khác sau khi được Ủy ban Chứng khoán Nhà nước chấp thuận.
2. Trường hợp thành viên bù trừ bị đình chỉ hoạt động bù trừ, thanh toán giao dịch chứng khoán theo quyết định của Ủy ban Chứng khoán Nhà nước, Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam thực hiện đình chỉ hoạt động bù trừ, thanh toán giao dịch chứng khoán đối với thành viên bù trừ căn cứ quyết định của Ủy ban Chứng khoán Nhà nước.
3. Cách thức xác định, thời hạn và phạm vi đình chỉ hoạt động bù trừ, thanh toán giao dịch chứng khoán của thành viên bù trừ thực hiện theo quy chế thành viên của Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam.
1. Các tổ chức được mở tài khoản trực tiếp tại Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam, bao gồm:
a) Tổng công ty đầu tư và kinh doanh vốn Nhà nước;
b) Các tổ chức tín dụng, bảo hiểm tham gia giao dịch công cụ nợ do Sở giao dịch chứng khoán tổ chức;
c) Ngân hàng Nhà nước Việt Nam, Kho bạc Nhà nước, Trung tâm lưu ký chứng khoán nước ngoài.
2. Các tổ chức mở tài khoản trực tiếp quy định tại điểm a, b khoản 1 Điều này mở tài khoản để lưu ký chứng khoán thuộc sở hữu của chính mình và được sử dụng các dịch vụ do Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam cung cấp.
3. Các tổ chức mở tài khoản trực tiếp quy định tại điểm c khoản 1 Điều này thực hiện như sau:
a) Ngân hàng Nhà nước Việt Nam mở tài khoản để lưu ký giấy tờ có giá thuộc sở hữu của Ngân hàng Nhà nước Việt Nam và khách hàng lưu ký của Ngân hàng Nhà nước Việt Nam nhằm phục vụ cho các nghiệp vụ thị trường tiền tệ;
b) Kho bạc Nhà nước mở tài khoản để lưu ký công cụ nợ nhằm phục vụ cho các nghiệp vụ liên quan của Kho bạc Nhà nước;
c) Trung tâm lưu ký chứng khoán nước ngoài được mở tài khoản để cung cấp các dịch vụ liên quan đến hoạt động đăng ký, lưu ký, bù trừ và thanh toán giao dịch chứng khoán căn cứ vào văn bản thỏa thuận với Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam.
4. Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam cung cấp dịch vụ cho tổ chức mở tài khoản trực tiếp trên cơ sở hợp đồng hoặc văn bản thỏa thuận được ký kết giữa hai bên. Hợp đồng gồm những nội dung chính sau:
a) Phạm vi cung cấp dịch vụ;
b) Quyền và nghĩa vụ của Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam, tổ chức mở tài khoản trực tiếp;
c) Giải quyết tranh chấp;
d) Chấm dứt hợp đồng;
đ) Nghĩa vụ tài chính.
5. Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam ban hành mẫu hợp đồng cung cấp dịch vụ giữa Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam với tổ chức mở tài khoản trực tiếp.
1. Ngân hàng thanh toán là Ngân hàng Nhà nước Việt Nam hoặc ngân hàng thương mại theo quy định tại Điều 69 Luật Chứng khoán.
2. Nghĩa vụ của ngân hàng thương mại làm ngân hàng thanh toán, bao gồm:
a) Duy trì điều kiện làm ngân hàng thanh toán theo quy định tại khoản 2 Điều 69 Luật Chứng khoán;
b) Thực hiện cho thành viên bù trừ vay để hỗ trợ thanh toán giao dịch chứng khoán trong trường hợp thành viên bù trừ mất khả năng thanh toán giao dịch chứng khoán;
c) Bồi thường cho Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam, thành viên bù trừ các chi phí và thiệt hại phát sinh trong trường hợp không thực hiện hoạt động thanh toán tiền giao dịch chứng khoán theo đúng quy định do lỗi của ngân hàng thanh toán;
d) Thực hiện chế độ báo cáo định kỳ, bất thường hoặc theo yêu cầu của Ủy ban Chứng khoán Nhà nước thông tin về hoạt động của ngân hàng trong việc duy trì điều kiện làm ngân hàng thanh toán;
đ) Thực hiện công bố thông tin và các nghĩa vụ khác theo quy định phát luật.
3. Ủy ban Chứng khoán Nhà nước kiểm tra, giám sát định kỳ, bất thường việc duy trì các điều kiện và thực hiện các nghĩa vụ của ngân hàng thương mại là ngân hàng thanh toán. Trường hợp ngân hàng không duy trì được điều kiện làm ngân hàng thanh toán hoặc không khôi phục được điều kiện làm ngân hàng thanh toán theo thời hạn do Ủy ban Chứng khoán Nhà nước quy định hoặc ngân hàng vi phạm nghiêm trọng nghĩa vụ của ngân hàng thanh toán hoặc các trường hợp khác để đảm bảo an toàn cho hoạt động thanh toán, Ủy ban Chứng khoán Nhà nước có quyền lựa chọn ngân hàng thanh toán khác đáp ứng đủ điều kiện quy định tại Điều 69 Luật Chứng khoán. Ngân hàng thanh toán chịu trách nhiệm cho hoạt động thanh toán giao dịch chứng khoán và hoàn tất các nghĩa vụ liên quan đến hoạt động thanh toán giao dịch chứng khoán đối với khách hàng cho đến khi có ngân hàng thanh toán thay thế.
4. Việc chuyển chức năng thanh toán giao dịch chứng khoán từ ngân hàng thương mại sang Ngân hàng Nhà nước Việt Nam thực hiện theo quyết định của Thủ tướng Chính phủ.
1. Giấy đăng ký làm ngân hàng thanh toán theo Mẫu số 51 Phụ lục ban hành kèm theo Nghị định này.
2. Bản cung cấp thông tin về ngân hàng, trong đó nêu rõ khả năng đáp ứng các điều kiện tại Điều 69 Luật Chứng khoán.
3. Quyết định thành lập và hoạt động của ngân hàng thương mại.
4. Văn bản cam kết về việc thiết lập hệ thống, cơ chế quản lý tài khoản và tiền gửi ký quỹ, tài khoản và tiền gửi thanh toán, cung cấp kịp thời, đầy đủ thông tin về tiền gửi ký quỹ, tiền gửi thanh toán theo yêu cầu của Tổng công ty lưu ký và bù trừ chứng khoán Việt Nam và Ủy ban Chứng khoán Nhà nước.
1. Ủy ban Chứng khoán Nhà nước được lựa chọn các ngân hàng thương mại làm ngân hàng thanh toán để cung cấp dịch vụ thanh toán tiền cho giao dịch chứng khoán trên hệ thống giao dịch chứng khoán.
2. Trong thời hạn 15 ngày kể từ ngày nhận được hồ sơ đầy đủ và hợp lệ, Ủy ban Chứng khoán Nhà nước quyết định chấp thuận đăng ký làm ngân hàng thanh toán; trường hợp từ chối, phải trả lời bằng văn bản và nêu rõ lý do.
|
THE GOVERNMENT |
SOCIALIST REPUBLIC OF VIETNAM |
|
Hanoi, December 31, 2020 |
DECREE
ELABORATION OF SOME ARTICLES OF THE LAW ON SECURITIES
Pursuant to the Law on Government Organization dated June 19, 2015; the Law dated November 22, 2019 on Amendments to the Law on Government Organization and the Law on Local Government Organization;
Pursuant to the Law on Enterprises dated June 17, 2020;
Pursuant to the Law on Investment dated June 17, 2020;
Pursuant to the Law on Securities dated November 26, 2019;
At the request of the Minister of Finance;
The Government promulgates a Decree on elaboration of some Articles of the Law on Securities.
GENERAL PROVISIONS
1. This Decree elaborates Clause 2 Article 7, Clause 2 Article 11, Clause 2 Article 14, Point g Clause 3 Article 15, Clause 6 Article 15, Clause 6 Article 31, Clause 3 Article 35, Clause 7 Article 41, Clause 1 Article 42, Clause 4 Article 47, Clause 4 Article 48, Clause 2 Article 51, Clause 6 Article 56, Clause 3 Article 62, Clause 4 Article 69, Clause 1 Article 74, Clause 1 Article 75, Point c Clause 5 Article 75, Clause 1 Article 79, Clause 3 Article 87, Clause 3 Article 93, Clause 2 Article 96, Clause 5 Article 97, Clause 3 Article 100, Clause 7 Article 135 of the Law on Securities.
2. This Decree does not regulate:
a) Derivatives and activities on the derivatives market, except contents about clearing banks, development of operational risk management fund of Vietnam Securities Depository and Clearing Corporation (VSDCC), securities practice, participation on foreign investors in the securities market of Vietnam, measures for assurance of security and safety of the securities market;
b) Public securities offering for conversion of enterprises 100% charter capital of which is held by the State (hereinafter referred to as “wholly state-owned enterprises”), single-member limited liability companies of wholly state-owned enterprises and public service providers into joint stock companies (equitization), transfer of state capital and capital of wholly state-owned enterprises in other enterprises;
c) Private placements of bonds in the domestic market; offering of bonds overseas.
1. Vietnamese, foreign organizations and individuals participating in securities investment and activities in the securities market of Vietnam.
2. Securities and the securities market regulatory authorities.
3. Other organizations and individuals involved in securities-related activities.
For the purpose of this Decree, the terms below are construed as follows:
1. “issued shares” are shares that have been fully paid for by investors and information about their holders have been recorded into the shareholder register.
2. “shares outstanding” are issued shares except those repurchased by the issuing company as treasury shares.
3. “treasury shares” are shares issued and repurchased by the same joint stock company.
4. A “share fraction” is an amount of capital that is smaller than 01 full share.
5. “fractional shares” means shares that represent the share capital from combination of share fractions.
6. “bonds” are a kind of securities that have a duration of at least 01 year and are issued by enterprises to certify lawful rights and interests of their holders to part of the issuers.
7. “convertible bonds” are bonds that are issued by a joint stock company and can be converted into common shares of the same company under the terms and conditions specified in the bond issuance plan.
8. “secured bonds" are bonds whose principal or interest payment is wholly or partially secured by assets of the issuer or a third party in accordance with regulations of law on secured transactions; or have payment guarantee as prescribed by law.
9. “warrant-linked bonds” are bonds that are issued together with warrants by a joint stock company and allow the warrant holders to purchase a number of common shares of the issuer under the terms and conditions specified in the bond issuance plan.
10. Issuance of shares for “swap” means issuance of additional shares in exchange for shares/stakes of another enterprise, for swapping the issuer’s debts to the creditors.
11. “ending date” of an offering means the deadline for collecting payments from investors for the offered securities.
12. Ending dates of issuance:
a) The ending date of issuance of shares for swap under the consolidation or merger contract is the date on which the list of shareholders and members is closed for swapping;
b) The ending date of issuance of shares for swap is the date determined by the issuer on which its shares are swapped with shares/stakes of other organizations/individuals;
c) The ending date of issuance of shares for swapping debts is the date determined by the issuer on which its shares are swapped with debts owed by the issuer to its creditors;
d) The ending date of scrip issue, issuance of shares for increasing share capital from equity is the day of registration for right distribution;
dd) The ending date of issuance of shares under an employee share ownership plan (ESOP) is the last day for collecting payments for the shares from the employees, the date determined by the issuer to issue bonus shares to its employees;
e) The ending date of issuance of shares for exercising warrants is the last day for collecting payments for shares from the exercising investors;
g) The ending date of issuance of depositary receipts (DR) on the basis of newly issued shares is the last day for collecting payments for the depository receipts from the investors.
13. Representatives of bondholders are depository members of VSDCC or the appointed securities investment fund management company, or the person appointed to represent the interests of bondholders.
14. “restructuring” of an enterprise can be a consolidation or merger of companies; acquisition of the enterprise or sale of assets that changes or is worth at least 35% of the total assets. To be specific:
a) In case of consolidation, this is the ratio of total assets of the other consolidating companies to total assets of the consolidating company with the highest value of total assets according to their latest financial statements;
b) In case of merger, this is the ratio of total assets of the acquired companies to total assets of the acquiring company according to their latest financial statements;
c) In case of acquisition of an enterprise or sale of assets, this is the ratio of transaction value to total assets of the enterprise according to its latest financial statement.
15. Consolidation, merger, division of companies are defined by the Law on Enterprises.
16. Acquisition of enterprises is defined by the Law on Competition.
17. The year of consolidation, merger, division or restructuring is the year in which the consolidation, merger, division or restructuring is completed.
18. “pro forma financial statement” is a report that is made to demonstrate the impact of an material transaction or event on an unadjusted financial information of the unit with an presumption that the event occurred or the transaction was carried out on a previous day as instructed by the Ministry of Finance.
19. “underwriter” means the organization that underwrites securities issuance by the issuers prescribed in Clause 31 Article 4 of the Law on Securities.
20. "underwriting group” means a group of underwriters that underwrite the same issuance of an issuer under an securities underwriting contract which states that the primary underwriter’s overall responsibility for the underwriting process, rights and responsibility of each underwriter.
21. “creditor” means the lender or the party having the right to request an organization or individual to repay a debt.
22. “project” is a collection of proposed medium-term or long-term investments in specific areas and periods.
23. “assistance in overseas DR issuance” means the occasion when the organization that issues shares as the basis for overseas offering of DRs guarantees to assist the overseas DR issuer on the basis of circulating or newly issued shares and provide information under the contract for assistance in overseas DR issuance.
24. “overseas DR issuer” means a financial institution or foreign bank that issues DRs in its country on the basis of shares listed on the securities market of Vietnam under a contract for assistance in overseas DR issuance.
25. “tender offer” means the occasion when an organization or individual purchases all or part of the voting shares of a public company or closed-end fund certificates of a closed-end fund in accordance with regulations of law in order to ensure fairness among shareholders and investors of the target company or target investment fund.
26. “target company” means a public company whose shares are subjects of tender offer.
27. “target investment fund” means a closed-end fund whose closed-end fund certificates are subjects of tender offer.
28. “tender offer agent” means a securities company that is licensed for securities brokerage and is appointed by the bidder to complete procedures for tender offer under a contract.
29. The ending date of a tender offer is the deadline for submission of applications for registration of sales, swaps written on the tender offer notice.
30. The ending date of repurchase of shares is the deadline for repurchase of shares specified by the issuer in the repurchase notice.
31. “host country" means the country or territory where a Vietnamese issuer registers for securities offering, listing and transaction.
32. “foreign investor” is defined in the Law on Investment.
33. “Stock Exchanges” include Vietnam Exchange (VNX) and its subsidiary companies.
34. “listing year” is the year in which the listed organization submits the satisfactory application for listing.
35. “UPCOM” stands for “Unlisted Public Company Market”, which is a system organized and operated by stock exchanges for trading of unlisted securities.
36. Trading of “debt instruments” means trading and listing of debt instruments of the Government (government bonds, treasury bills, nation development bonds), government-backed bonds and municipal bonds
37. An “equitized enterprise” means an enterprise that has been converted into a joint stock company in accordance with regulations of law on conversion of state-owned enterprises and single-member limited liability companies of wholly state-owned enterprises into joint stock companies.
38. “foreign ownership ratio” means the ratio of holding of shares/stakes to charter capital of foreign investors and any business organization over 50% charter capital of which is held by foreign investors in a public company, securities company, securities investment fund management company, or a securities investment fund, securities company.
39. “clearing” includes margin depositing, comparing, verifying transactions, processing of errors, novation, clearing, determination of liability and management of risks relevant to securities transactions.
40. “settlement” means the simultaneous transfer of money and securities on the settlement date.
41. “central counterparty clearing” means the mechanism for clearing and settling securities transactions implemented by VSDCC, which will become one party through novation, while the clearing member is the other party of the transaction.
42. “direct clearing member” means a clearing member that is allowed to clear, settle its own securities and those of its clients.
43. “general clearing member” means a clearing member that is allowed to clear, settle its own securities and those of its clients, provide clearing and settlement services for non-clearing members and their clients.
44. “non-clearing member” is a trading member that is not a clearing member.
45. “novation” means replacement of a party to the securities transaction with another party and the replacing party inherits all interests and duties relevant to the transaction of the replaced party.
46. “unfinished securities transaction” is a purchase, sale of securities that has been conducted but has not been settled.
47. “opening organization” means the organization that directly opens the securities depository account at VSDCC and uses services provided by VSDCC under a service contract or agreement between them.
48. “clearing margin account” means the account opened for an investor or clearing member for management of clearing margin and settlement of securities.
49. “clearing margin” can be money, securities or other assets as prescribed by VSDCC that are used for ensuring settlement of securities.
50. “net asset value” of a fund is the total value of assets of minus (-) total debts payable by the fund.
51. “private investment company" means a investment company that has up to 99 shareholders where the capital contribution of each investor that is an organization is at least 03 billion VND and that of each investor that is an individual is at least 01 billion VND.
52. “public investment company” means an investment company that has successfully conducted its IPO.
53. “financial products” are securities backed by collateral issued by subsidiary companies on the basis of underlying securities as instructed by the Ministry of Finance.
54. “foreign securities trading organization" means an organization that is lawfully established in a foreign country to perform one or some securities trading operations, including securities brokerage, proprietary trading, securities underwriting, securities investment counseling, securities investment fund management and portfolio management.
55. “executives” include the Director/General Director, Deputy Director/Deputy General Director, chief accountant and other executives prescribed by the company's charter.
56. “non-executive members of the Board of Directors” (hereinafter referred to as "non-executive members") are members of Board of Directors other than the Director/General Director, Deputy Director/Deputy General Director, chief accountant and other executives prescribed by the company's charter.
Article 4. Identification of professional securities investors
1. Issuers and securities investment fund management companies shall identify or authorize securities companies to identify professional securities investors that purchase securities upon private placement or registration of private funds. In case of authorization, the authorized securities investment fund management company shall sign a contract with the securities company, which specifies the rights and responsibilities or the parties.
2. For privately placed securities that are traded on the transaction systems of Stock Exchanges, the securities company where the investor purchase the securities shall identify whether such investor is a professional investor before conducting the transaction. For privately placed securities that are not traded at Stock Exchanges, the registering or depositing organizations shall identify professional securities investors before transfer of ownership.
3. For 01 year from the day on which an investor is identified as professional securities investor by the securities company, the investor does not have to undergo the identification process again when trading privately placed securities or private fund certificates.
4. Investors who have purchased privately placed securities or private fund certificates do not have to undergo the identification process again after the purchase is made.
5. Documents serving identification of professional securities investors shall be retained as prescribed by law.
Article 5. Documents serving identification of professional securities investors
1. For the organizations mentioned in Point a Clause 1 Article 11 of the Law on Securities: the Certificate of Enterprise Registration or Establishment and Operation License or equivalent documents.
2. For the organization mentioned in Point b Clause 1 Article 11 of the Law on Securities:
a) For listed or registered organizations: the decision on listing or registration;
b) For organizations other than listed or registered organizations: the Certificate of Enterprise Registration or equivalent documents; audited annual financial statement or examined half-year financial statement.
3. For the individuals mentioned in Point c Clause 1 Article 11 of the Law on Securities:
a) Unexpired ID card or passport;
b) Unexpired securities practicing certificate.
4. For the individuals mentioned in Point d Clause 1 Article 11 of the Law on Securities:
a) Unexpired ID card or passport;
b) Certification by the securities company where the investor opens the securities trading account of market values of listed or registered securities when the individual is identified as a professional securities investor.
5. For the individuals mentioned in Point dd Clause 1 Article 11 of the Law on Securities:
a) Unexpired ID card or passport;
b) Tax declaration dossier submitted to the tax authority or tax deduction documents of the latest year before the individual is identified as a professional securities investor.
Article 6. General regulations on submission and addition of documents/reports
1. Organizations and individuals that participate in the preparation of documents/reports shall be held legally responsible for the accuracy, truthfulness and adequacy of these documents/reports.
2. The documents specified in this Decree shall be submitted and returned in person, by post or through the online public service system as instructed by the Ministry of Finance.
3. Physical documents/reports shall be made into 01 original set and written in Vietnamese language. Copies of these documents/reports shall be extracted from the master register or authenticated. Information therein shall be accurate, truthful, unequivocal and include important information that affects investors’ decision.
4. Unless otherwise prescribed by this Decree, documents in foreign languages shall be enclosed with Vietnamese translation authenticated by competent authorities; documents issued or certified by foreign authorities shall be consularly legalized within 06 months before they are received by Vietnamese authorities.
5. In case the submitted documents/reports have to be revised or supplemented, the receiving authority shall, within 07 working days from the receipt of these documents/reports, send a document to the submitting entity specifying the necessary revisions or supplementation. In case the time limit for processing these documents/reports is shorter than 7 days, the receiving authority may request the documents/reports be revised or supplemented within this time limit.
6. While the documents/reports are being processed, the submitting entity has the responsibility to revise or supplement them if they are found inaccurate or inadequate, and provide explanation for any issue that may cause confusion.
7. The time limit for processing documents/reports begins when the satisfactory documents/reports are received by the authority. Revising and supplementary documents shall bear the signatures of the persons who signs the originally submitted documents/reports or signatures of persons holding the same positions or the company’s legal representatives. Documents/reports are satisfactory when they contain all components specified in this Decree and are completed as per regulations.
8. The submitting entity shall complete the documents/reports within 60 days from the day on which the receiving authority requests revision or supplementation of the submitted documents/reports. In case of tender offer that is paid in cash or issued shares, the time limit for completing documents shall be 15 days. If the documents/reports are not completed within this time limit, the receiving authority shall stop processing them.
OFFERING, ISSUING SECURITIES AND TENDER OFFER
Section 1. GENERAL REGULATIONS ON OFFERING, ISSUING SECURITIES AND TENDER OFFER
Article 7. General regulations on offering, issuing securities and tender offer
1. Organizations and individuals that register or report offering, issuance of securities and tender offer as prescribed by this Chapter may only carry out these operations after the conditions prescribed by law are fully satisfied. In case an issuer registers public offering that includes other offering and issuance activities, the securities for other offering and issuance activities shall be satisfied in addition to the conditions for public offering.
2. Organizations and individuals that register or report offering, issuance of securities and tender offer as prescribed by this Chapter shall carry out these operations in accordance with the plans that are registered with tor reported to SSC within the prescribed deadline.
3. The registration of public offering shall be applied for by the issuer, except public offering by shareholders of public companies.
4. Issuers, shareholders of public companies that register public offering, related persons and internal actors of issuers and related persons of these internal actors must not publicly disclose to investors their remarks or assurance of future securities prices in any shape or form.
5. Issuers and other related organizations and individuals must not advertise the private placement on mass media. Disclosed information must not include advertisement contents or offering of privately placed shares.
6. For issued bonds, except for the requirements for representatives of bond owners specified in Clause 4 Article 24 of this Decree, the terms of conditions of bonds may only be changed if the following conditions are satisfied:
a) They are approved by supervisory authority of the issuer;
b) They are approved by a number of bond owners that hold at least 65% of total bonds of the same type, except for the terms that may be changed according to the issuance plan specified in the prospectus;
c) Information about the changes shall be published on the websites of the issuer (if any) and the Stock Exchange.
7. In case the company has conditional business lines that are subject to approval by competent authorities regarding issuance, charter capital increase, transfer and swap of shares, the application for registration and reports on offering/issuing of shares shall be enclosed with the competent authority’s written approval when they are submitted to SSC.
Article 8. Opening and use of escrow accounts
1. Shareholders of public companies that register public offering (hereinafter referred to as “offering shareholders”) and the issuer shall open 01 escrow account to receive payment for the securities offered or issued at a bank or foreign bank branch (FBB), except issuance of shares for swapping, paying dividends, increasing share capital from equity, issuance of bonus shares for employees, issuance of shares for bond conversion and the case specified in Clause 2 of this Article.
2. Issuers that requests permission for overseas issuance of shares, issuance of new shares as the basis for overseas offering of depository receipts shall open escrow account to receive payment for these shares at permitted banks and FBBs as prescribed by foreign exchange laws.
3. The bank or FBB where the escrow account is opened must not be a related person of the issuer or offering shareholder. The escrow account must be different from the checking account of the issuer or offering shareholder.
4. The issuer or offering shareholder that is a commercial bank must choose another bank or FBB to open the escrow account.
5. Payments for securities shall be transferred to the escrow account in accordance with Clause 3 Article 26 of the Law on Securities. The issuer or offering shareholder must not use money in the escrow account in any shape or form until the end of the offering or issuance, a report is submitted to SSC and a confirmation of such report is given by SSC.
Article 9. Reporting and disclosing information about use of revenue generated by an offering or issuance
1. In case capital is raised for execution of a project, the issuer shall report and disclose information about the use of revenue generated by the offering or issuance for project execution from the end of the offering or issuance to the day on which the revenue is completely disbursed. To be specific:
a) Every 06 months from the end of each offering or issuance until the raised capital is completely disbursed, the issuer shall submit reports to SSC on the use of this capital (Form 01 in the Appendix hereof) and disclose information on the website of the issuer (if any) and the Stock Exchange within 05 working days from the expiration of the aforementioned periods;
b) The report on use of revenue generated by from the offering or issuance for project execution that is audited by an accredited audit organization shall be disclosed at the annual GSM, submitted to the Board of Members and the company’s owner, or included in the audited annual financial statement.
2. Changes to the plan for use of revenue generated by the offering or issuance are subject to approval by the GMS, the Board of Directors, the Board of Members or the company’s owner. The Board of Directors may only change this plan if the change in value is smaller than 50% of the generated revenue if authorized by the GMS and conformable with the company's charter, except offering of non-convertible bonds, bonds without warrants under a plan approved by the Board of Directors. Changes to the plan for use of revenue generated by the offering or issuance shall be reported to the nearest GMS.
3. Within 24 hours from the issuance of the decision by a competent body mentioned in Clause 2 of this Article on changes to the plan for use of revenue generated by the offering or issuance, the issuer shall:
a) Submit a report (form No. 02 in the Appendix hereof) to the SSC on the changes to the plan for use of revenue generated by the offering or issuance;
b) Publish information on the websites of the issuer (if any) and the Stock Exchange about the reasons for the changes and the decision on the changes issued by the competent body.
4. In case of offering as prescribed in Article 26 and Article 36 of this Decree, within 24 hours after the foreign issuer receives the approval from the authority that issues the investment certificate for the changes to plan for use of revenue generated by the offering or issuance, the issuer shall publish information about such approval on the websites of the issuer (if any) and the Stock Exchange.
Article 10. Public offering forms
1. Initial public offering (IPO) of securities includes:
a) IPO for raising additional capital to the issuer;
b) IPO to become a public company by changing ownership structure without increasing the issuer’s charter capital;
c) Combination of (a) and (b);
d) Initial public offering of fund certificates for establishment of a securities investment fund.
2. Follow-on offering or follow-on public offers (FPO) includes the following cases:
a) A public company conducts an FPO of shares or issues call options to its existing shareholders;
b) A securities investment fund management company conducts and FPO of fund certificates to increase its charter capital.
3. Public offering of shares by shareholders of public companies.
4. Public offering of bonds and securities by issuers.
Article 11. Application for IPO by a joint-stock company
1. The application form No. 03 in the Appendix hereof.
2. The prospectus prescribed in Article 19 of the Law on Securities.
3. The GMS’s decision to approve the issuance plan, the plan for use of revenue generated by the offering, except offering of shares held by shareholders in the manners specified in Point b Clause 1 Article 10 of this Decree, the listing or registration of shares on securities trading systems, where:
a) The issuance plan shall specify the offer price, rules for determination thereof or that the Board of Directors is authorized to determine the offer price (except shares held by shareholders in the manner specified in Point b Clause 1 Article 10 of this Decree); the quantity of shares offered; grant of approval or authorization for the Board of Directors to approve the plan for assurance that the foreign ownership ratio is conformable. In case the issuance plan does not specify the offer price or rules for determination thereof, it shall be determined in accordance with the Law on Enterprises;
b) The capital use plan is the plan for use of the additionally raised capital. In case the offering is meant to raise capital for project execution, the capital use plan shall include the plan for making up for the deficiency in capital generated by the offering for project execution;
c) If the IPO combines raising additional capital for the issuer and offering shares held by shareholders, the issuance plan shall specify the priority of shares distribution.
4. The financial statements prepared by the issuer within the last 02 years in accordance with Article 20 of the Law on Securities, where:
a) If the application is submitted within 60 days from the end of the fiscal year, the previous year’s annual financial statement in the initial application does not have to be audited, but audited financial statements of the 02 preceding years must be included. In case the issuer completes the application after 90 days from the end of the fiscal year, the latest audited financial statement must be included;
b) In case the issuer issues shares to increase charter capital after the end of the latest fiscal year which has been audited or examined, the report on capital contribution by the owner which is audited by an accredited audit organization must be included.
5. The public offering consulting contract, unless the issuer is a securities company.
6. The securities underwriting agreement (if any) that contains adequate information specified in form No. 04 in the Appendix hereof. In case of an underwriting group, the underwriting agreements shall be enclosed with the contracts between the underwriters. These documents shall be sent to SSC before the issuance date of the offering registration certificate.
7. The decision of the Board of Directors to approve the IPO application. If the IPO is conducted by a credit institution, the application must be approved in writing by State Bank of Vietnam (SBV) regarding the charter capital increase as prescribed by credit institution laws. If the IPO is carried out by an insurer, the application must be approved in writing by the Ministry of Finance regarding the charter capital increase as prescribed by insurance laws
8. The written commitment of the Board of Directors to list or register shares on the securities trading system.
9. The written agreements between the shareholders holding the offered shares and the company regarding the offering plan and offer price in case of offering prices held by shareholders.
10. The documents specified in Points c, dd, e and h Clause 1 Article 18 of the Law on Securities.
Article 12. Application for FPO by a public company
1. The application form No. 05 in the Appendix hereof.
2. The GMS’s decision to approve the issuance plan, the plan for use of revenue generated by the offering and the listing or registration of shares on securities trading systems, where:
a) The issuance plan shall specify the types of offered shares; quantity of each type, their characteristics (if the offered shares are not ordinary shares); the offer price, rules for determination thereof or that the Board of Directors is authorized to determine the offer price (except shares held by shareholders in the manner specified in Point b Clause 1 Article 10 of this Decree); the quantity of shares offered; grant of approval or authorization for the Board of Directors to approve the plan for assurance that the foreign ownership ratio is conformable. In case the issuance plan does not specify the offer price or rules for determination thereof, it shall be determined in accordance with the Law on Enterprises;
b) In case the offering is meant to raise capital for project execution, the capital use plan shall specify that the successful offering ratio is 70% of the total shares offered and include the plan for making up for the deficiency in capital generated by the offering for project execution.
3. The financial statements prepared by the issuer within the last 02 years in accordance with Article 20 of the Law on Securities, where:
a) If the application is submitted within 60 days from the end of the fiscal year, the previous year’s annual financial statement in the initial application does not have to be audited, but audited financial statements of the 02 preceding years must be included. In case the issuer completes the application after 90 days from the end of the fiscal year, the latest audited financial statement must be included;
b) In case the issuer issues shares to increase charter capital after the end of the latest fiscal year which has been audited or examined (except scrip issue, issuance of shares to increase share capital from equity, issuance of bonus shares to employees, issuance of shares for bond conversion), the report on capital contribution by the owner which is audited by an accredited audit organization must be included.
4. The documents specified in Point c and Point h Clause 1, Point c and Point d Clause 2 Article 18 of the Law on Securities; Clauses 2, 5, 6, 7, 8 Article 11 of this Decree and the written declaration of compliance to regulations of Point e Clause 1 Article 15 of the Law on Securities.
Article 13. Conditions for public offering of shares by shareholders of public companies
1. The offered shares satisfy the conditions specified in Point a Clause 1, Point b Clause 2 Article 15 of the Law on Securities.
2. If the offering shareholder is an organization, the offering plan must be approved by the supervisory authority of that organization in accordance with the Law on Enterprises and its charter.
3. The offered shares are under the ownership of the offering shareholders and are freely transferrable.
4. There is a securities company that provides IPO advisory services, unless the offering shareholder is a securities company.
5. The offering shareholder must open an escrow account to receive payment for the offered shares.
6. The foreign ownership ratio in the public company whose shares are offered is conformable.
7. SBV and the Ministry of Finance have approved the transfer of shares of the credit institution or insurer by the shareholder if such an approval is mandatory as prescribed by regulations of law on credit institutions and insurance business.
Article 14. Application for public offering of shares by shareholders of public companies
1. The application form No. 06 in the Appendix hereof.
2. The prospectus prescribed in Article 19 of the Law on Securities.
3. The decision to approve the offering plan issued by the competent authority of the offering shareholder that is an organization which specify the types of offered shares; quantity of shares offered; the offer price, rules for determination thereof or authority to determine the offer price.
4. The shareholder register or a certificate issued by VSDCC or depository member, or the share certificate.
5. The financial statements of the last 02 years of the organization whose shares are offered as prescribed by Article 20 of the Law on Securities. In case the application is completed by the offering shareholder after 90 days from the end of the fiscal year, the latest audited annual financial statement of the organization whose shares are offered must be included.
6. There is a securities company that provides IPO advisory services, unless the offering shareholder is a securities company.
7. Written confirmation by the bank or FBB that the offering shareholder has opened an escrow account to receive payment for the offered shares.
8. A decision of the superior authority of the offering shareholder that is an organization to approve the plan for assuring conformable foreign ownership ratio in the public company whose shares are offered is conformable.
9. The written approval of SBV or the Ministry of Finance for transfer of shares by the shareholder (if any).
Article 15. Conditions for IPO for conversion of a limited liability company into a joint-stock company
1. There is a plan for conversion of a limited liability company into a joint-stock company which is approved by the Board of Members or the owner of the company.
2. There is an issuance plan approved by the Board of Members or the owner of the company; there is a plan for use of revenue generated by the offering (unless shares are offered in the manners specified in Point b Clause 1 Article 10 of this Decree) which is approved by the Board of Members or the owner of the company.
3. The contributing members of the owner of the company has an agreement to together hold at least 20% of charter capital of the issuing organization for at least 01 year from the end of the offering.
4. The foreign ownership ratio in the public company is conformable with law.
5. There is an agreement between the members whose stakes are offered and the issuing organization on the issuing plan and offer price if case members’ stakes are offered.
6. The conditions specified in Points a, b, d, e, g, h and I Clause 1 Article 15 of the Law on Securities are satisfied.
Article 16. Application for IPO for conversion of a limited liability company into a joint-stock company
1. The decision of the Board of Members or the owner of the company to approve the conversion plan, which must specify:
a) The conversion method: with or without raising of additional capital or combination of raising additional capital and sale of stakes of the company’s owner and members;
b) The composition of the company’s charter capital after conversion, including: the quantity of shares of the company’s members/owner, the quantity of shared publicly offered (including: quantity of shares offered to raise additional capital for the issuer, quantity of shares sold as stakes by the company’s owner/members), quantity of shares offered to other entities (if any).
2. The decision of the company’s owner or members to approve the issuance plan, the plan for use of revenue generated by the offering (except offering of shares held by shareholders in the manners specified in Point b Clause 1 Article 10 of this Decree) and the listing or registration of shares on securities trading systems, where:
a) The issuance plan must specify the offer price or rules for determination of offer price (unless shares are offered in the manners specified in Point b Clause 1 Article 10 of this Decree) and the quantity of shares offered. The offer price shall be the price approved by the Board of Members or the owner of the company or determined according to the rules approved by the Board of Members or the owner of the company;
b) The capital use plan is the plan for use of the additionally raised capital. In case the offering is meant to raise capital for project execution, the capital use plan shall include the plan for making up for the deficiency in capital generated by the offering for project execution;
c) In case of combination of offering for raising additional capital for the issuer and offering stakes held by the company’s members or owner, the issuance plan shall specify the priority of shares distribution.
3. The written commitment to hold bonds of the company’s owner or contributing members.
4. A decision of the company’s owner or Board of Members to approve the plan for assuring conformable foreign ownership ratio during the bond offering.
5. An agreement between the members whose stakes are offered and the company on the offering plan and offer price (if any).
6. The decision of company’s owner or the Board of Directors to approve the public offering application. If the public offering is conducted by a credit institution, the application must be approved in writing by SBV regarding the charter capital increase and transfer as prescribed by credit institution laws. If the public offering is carried out by an insurer, the application must be approved in writing by the Ministry of Finance regarding the charter capital increase and transfer as prescribed by insurance laws.
7. The documents specified in Point c, dd and h Clause 1 Article 18 of the Law on Securities and Clauses 1, 2, 4, 5, 6, 8 Article 11 of this Decree.
Article 17. Conditions for FPO of shares by public companies at lower prices than face value
1. The share price at which the issuer trade on the securities trading system is lower than the face value. The share price is the average reference price of 60 consecutive trading days before the list of shareholders is closed for survey or the GMS is held to approve the issuance plan.
2. The share premium is adequate according to the latest audited annual financial statement, which is enough to cover the deficit caused by the offering at lower price that value.
3. The conditions specified in Clause 2 Article 15 of the Law on Securities are satisfied.
Article 18. Application for FPO of shares by public companies at lower prices than face value
1. The documents specified in Article 12 of this Decree.
2. A table that specifies the reference share prices of 60 consecutive trading days before the list of shareholders is closed for survey or the GMS is held to approve the issuance plan, which is certified by the public offering consulting organization.
Article 19. Conditions for making public offering of bonds
1. The conditions specified in Clause 3 Article 15 of the Law on Securities are satisfied.
2. The issuer or offered bonds are rated by a credit rating organization that is granted the certificate of eligibility by the Ministry of Finance in the following cases:
a) The total value of bonds at their face value raised in every 12 months exceed 500 billion VND and exceed 50% of the equity according the latest annual financial statement that is audited (or examined half-year financial statement if the issuer is required to disclose the examined half-year financial statement) by an accredited audit organization; or
b) The bond outstanding at face value on the offering registration date exceed 100% of the equity according the latest annual financial statement that is audited (or examined half-year financial statement if the issuer is required to disclose the examined half-year financial statement) by an accredited audit organization.
Article 20. Application for public bond offering
1. The application form No. 07 in the Appendix hereof.
2. The prospectus prescribed in Article 19 of the Law on Securities.
3. The decision of the GMS or the Board of Directors or the Board of Members or the company’s owner to approve the issuance plan, the plan for use and repayment of capital generated by the public bond offering, and the listing of bonds on the securities trading system, where:
a) The issuance plan shall specify the types of bonds issued, quantity of each type, bond yield or rules for determination thereof; bond term;
b) In case the offering is meant to raise capital for project execution, the capital use plan shall include the plan for making up for the deficiency in capital generated by the offering for project execution.
4. The issuer’s financial statements of the last 02 years that are conformable with regulations of Article 20 of the Law on Securities. To be specific: if the application is submitted within 60 days from the end of the fiscal year, the previous year’s annual financial statement in the initial application does not have to be audited, but audited financial statements of the 02 preceding years must be included. In case the issuer completes the application after 90 days from the end of the fiscal year, the latest audited financial statement must be included.
5. The public bond offering consulting contract with a securities company, unless the issuer is a securities company.
6. The securities underwriting agreement (if any) that contains adequate information specified in form No. 08 in the Appendix hereof. In case of an underwriting group, the underwriting agreements shall be enclosed with the contracts between the underwriters. These documents shall be sent to SSC before the issuance date of the offering registration certificate.
7. The report on credit rating of the issuer of offered bonds within 12 months before the date of submission of the application (if any).
8. The written commitment of the Board of Directors or the President of the Board of Members or the President of the company to list the bonds on the securities trading system after the end of the offering.
9. The decision of company’s owner or the Board of Directors or the Board of Members to approve the public bond offering application. If the public bond offering is conducted by a credit institution, the application must be approved in writing by SBV regarding the charter capital increase and transfer as prescribed by credit institution laws.
10. The documents specified in Point c Clause 1, Point d and Point g Clause 3 Article 18 of the Law on Securities and a written declaration of conformity with Point e Clause 1 Article 15 of the Law on Securities.
Article 21. Conditions for public offering of convertible bonds or warrant-linked bonds by public companies
1. There is an issuance plan and a plan for use of revenue generated by the offering which is approved by the GMS.
2. There is a securities company that provides consulting for preparation of the application for public offering of convertible bonds or warrant-linked bonds, unless the issuer is a securities company.
3. There is a pledge to list the bonds on the securities trading system at the end of the offering, which must be honored.
4. The issuer has opened an escrow account to receive payments for the offered convertible bonds or warrant-linked bonds.
5. The total value of convertible bonds or warrant-linked bonds at their face value does not exceed the total value of shares outstanding at face value, unless there is an underwriting agreement which underwriter the purchase of the entire convertible bonds or warrant-linked bonds for reselling, or purchase of the undistributed convertible bonds or warrant-linked bonds.
6. If the public offering is meant to raise capital for execution of the issuer’s project, the quantity of convertible bonds and warrant-linked bonds sold must be at least 70% of the convertible bonds and warrant-linked bonds offered for project execution. The issuer shall have a plan to make up for the deficiency of capital generated by the offering.
7. The conditions specified in Points a, e Clause 1, Point b Clause 2 and Point d Clause 3 Article 15 of the Law on Securities.
Article 22. Application for public offering of convertible bonds or warrant-linked bonds by a public company
1. The application form No. 07 in the Appendix hereof.
2. The GMS’s decision to approve the issuance plan, the plan for use of revenue generated by the offering and the listing of bonds on the securities trading system, where:
a) The issuance plan shall specify: the types of bonds; quantity of each type; bond yield or rules for determination thereof; bond term; plan for bond conversion (conditions, time limit, exercise ratio or methods for calculation of conversion price, redemption in case bonds are not converted, authority of the Board of Directors to approve the plan for assurance of conformable foreign ownership ratio, and other terms); plan for exercising warrants (conditions, time limit, execution ratios; issue price or method for calculation thereof; redemption; authority of the Board of Directors to approve the plan for assurance of conformable foreign ownership ratio, and other terms). In case the conversion price or issue price for exercising warrants is lower than the face value, the conversion or exercising or warrants may only be carried out when the issuer has adequate share premium to cover the deficit caused by the issuance of bonds below face value.
b) The plan for use of revenue generated by the offering of convertible bonds or warrant-linked bonds, the plan for use of revenue generated by the issuance of shares for exercising warrants. The plan for use of revenue generated by the bond offering shall specify that the bonds sold must be at least 70% of the bonds offered for project execution, and include the plan to make up for the deficiency of capital generated by the offering.
3. A contract for bond offering consulting with a securities company, unless the issuer is a securities company.
4. Other documents relevant to the conversion of bonds into shares (if any).
5. The written commitment of the Board of Directors to list the bonds on the securities trading system after the end of the offering.
6. The decision of the Board of Directors to approve the offering application. If the offering is conducted by a credit institution, the application must be approved in writing by SBV regarding the charter capital increase and transfer as prescribed by credit institution laws.
7. The documents specified in Point c and Point h Clause 1, Point d Clause 2, Point d Clause 4 Article 18 of the Law on Securities; Clauses 2, 4, 6 Article 20 of this Decree; the written declaration of compliance to regulations of Point e Clause 1 Article 15 of the Law on Securities.
Article 23. Conditions for public offering of secured bonds
1. The documents specified in Article 19 of this Decree are satisfied.
2. The payment for all or part of the principal and interest of the bonds is secured in one or some of the following manners:
a) There is payment guarantee by a credit institution or FBB;
b) The bonds are secured by assets (collateral) of the issuer or third parties. The collateralized assets must be valuated by a licensed valuating organization, registered and settled in accordance with regulations of law on registration of secured transactions.
3. There is a bondholders’ representative as prescribed in Article 24 of this Decree.
Article 24. Bondholders’ representatives
1. Before the bonds are issued, the issuer shall appoint bondholders’ representatives.
2. The bondholders’ representatives must not be payment guarantor, owner of the collateralized assets, major shareholder or related person of the issuer.
3. The bondholders’ representative has at least the following responsibilities:
a) Supervise the adherence to commitments of the issuer in the bond offering application;
b) Ac as the intermediary between the bond owners, the issuer and other relevant organizations;
c) Request the payment guarantor to fulfill the guarantor’s obligations when the issuer fails to pay or properly pay the principal and interest of the bonds;
d) In case the bonds are secured by assets, the bondholders’ representative that is the organization responsible for management of the collateralized assets shall handle these assets on behalf of the bond owners in accordance with the concluded contract and regulations of law on implementation measures for assuring performance of civil obligations, except in the case specified in Point dd of this Clause;
dd) In case the bondholders’ representative is not allowed to receive the collateral as prescribed by relevant laws, the bondholders’ representative shall appoint a third party to receive the collateral. The third party shall cooperate with the bondholders’ representative in management and settlement of the collateral in accordance with the concluded contract and regulations of law on implementation measures for assuring performance of civil obligations;
e) Report to SSC when an issuer is found to be infringing upon the interests of bondholders.
4. The bondholders’ representative shall be changed when it is approved by a number of bondholders that represents at least 65% of total bonds of the same type. Changes to other terms and conditions in the bondholders’ representative’s contract are subject to approval by the superior authority of the issuer.
Article 25. Application for public offering of secured bonds
1. The documents specified in Article 20 of this Decree.
2. The payment guarantee agreement with a credit institution or FBB in case of payment guarantee.
3. In case the bonds are secured with assets: documents proving the ownership of the collateralized assets; the third party’s commitment to use these assets to bond redemption (if case the bonds are secured with the third party’s assets); the contract between the owner of collateralized assets, the bond holders’ representative, other recipients of collateralized assets (in case the bond holders’ representative is not allowed to receive these assets) and the issuer; the contract for insurance of these assets (if any); unexpired certificate of collateral valuation; certification of registration of the collateralized assets as security interest (if any), which must be sent to SSC before the issuance date of the certificate of offering registration.
4. The representation contract between the bondholders’ representative and the issuer.
Article 26. Conditions for making public offering of bonds in VND by international financial institutions
1. The issuer is an international financial institution as defined by treaties on credit institutions to which the Socialist Republic of Vietnam is a signatory.
2. The term of the offered bonds is not shorter than 10 years.
3. There is a plan for issuance and use of revenue generated by the offering for projects in Vietnam approved by competent authorities as prescribed by law.
4. The total revenue generated by the offerings in Vietnam does not exceed 30% of the total investment in the project.
5. The issuer has a commitment to fulfill its obligations to the investors in terms of issuance, redemption, assurance of lawful rights and interests of investors, and other conditions.
6. There is commitment to list the bonds on the securities trading system at the end of the offering.
Article 27. Application for making public offering of bonds in VND by international financial institutions
1. The application form No. 07 in the Appendix hereof.
2. There is a plan for issuance and use of generated revenue approved by competent authorities as prescribed by law.
3. A competent authority’s decision to approve the project.
4. A written commitment to fulfill the issuer’s obligations to investors in terms of conditions for issuance, redemption, assurance of lawful rights and interests of investors, and other conditions.
5. There is commitment to list the bonds on the securities trading system at the end of the offering.
Article 28. Conditions for making multiple public offerings of securities
1. Conditions for a public company to make an FPO of shares, public offering of convertible bonds or warrant-linked bonds; conditions for making multiple public offerings of bonds include:
a) The same conditions as those for making public offering of shares or bonds;
b) There is the need for raising capital multiple times for the project, business or production plan approved by the competent authority, unless the issuer is a credit institution;
c) There is an offering plan which specifies the quantity and time of each offering.
2. The duration of each offering must not exceed 90 days. The interval between two offerings must not exceed 12 months.
Article 29. Application for multiple public offerings of bonds
1. An application for FPO of shares, convertible bonds or warrant-linked bonds shall include the prospectus that has the following contents:
a) The project or plan that uses capital multiple times;
b) The offering plan which specifies the quantity and time of each offering.
2. Before each offering, the issuer shall provide the following additional documents:
a) Documents about the company’s situation in case of changes and extras to the prospectus according to Form No. 09 in the Appendix hereof (if any);Provincial Departments of Labor, War Invalids and Social Affairs shall update information in physical reports submitted by the employers and complete Form No. 09 in Appendix I hereof.
b) The report on use of revenue generated by the previous offering, which has to be audited by an accredited audit organization if the previous offering was conducted 06 months ago or longer.
Article 30. Conditions for a public company to make public securities offering after restructuring
Conditions for a public company to make an FPO of shares, public offering of convertible bonds or warrant-linked bonds after restructuring include:
1. The same conditions for public offering of shares or bonds, including profitable business and no accumulated loss as prescribed in Clause 2 of this Article.
2. It will be considered that the company makes a profit in the year preceding the offering year and does not have accumulated loss in the offering year when:
a) In case the company registers the offering within the restructuring year: pro forma financial statement of the preceding year which receives unqualified opinion from an accredited audit organization; the issuer’s latest quarterly financial statement;
b) In case the company registers the offering in the year succeeding the restructuring year (in case of consolidation): pro forma financial statement of the last year before restructuring time which receives unqualified opinion from an accredited audit organization; the first annual financial statement after restructuring which is audited by an accredited audit organization and satisfies the conditions specified in Clause 3 Article 20 of the Law on Securities; the issuer’s latest quarterly financial statement (if any). Profitability is determined according to total post-tax profit on the pro forma financial statements of the last year and the first year;
c) In case the company registers the offering in the year succeeding the restructuring year (in case of merger and acquisition, sale of assets), or in the second year after the restructuring year (in case of consolidation): the latest annual financial statement audited by an accredited audit organization and the issuer’s latest quarterly financial statement (if any).
Article 31. Application for registration of public securities offering after restructuring
1. In case the company registers the offering within the restructuring year, the application for offering shall contain the same documents as those in the application for FPO of shares, public offering of convertible bonds, warrant-linked bonds of a public company, application for public bond offering of this Decree. The audited annual financial statements of the last 02 years preceding the offering year shall be replaced with:
a) The annual financial statements that are audited by accredited audit organizations of the enterprises participating in the restructuring of the last 02 years preceding the restructuring year;
b) The pro forma financial statement of the year preceding the restructuring year which is audited by an accredited audit organization of the issuer;
c) The last annual financial statement before restructuring of the enterprises participating in the restructuring (in case of consolidation).
2. In case the company registers the offering in the year succeeding the restructuring year, the application for offering shall contain the same documents as those in the application for FPO of shares, public offering of convertible bonds, warrant-linked bonds of a public company, application for public bond offering of this Decree. The audited annual financial statements of the last 02 years preceding the offering year shall be replaced with:
a) The first annual financial statement after restructuring time which is audited by an accredited audit organization that satisfies the requirements specified in Clause 3 Article 20 of the Law on Securities and the pro forma financial statement of the last annual accounting period before restructuring time of the issuer which is guaranteed by the accredited audit organization (in case of consolidation);
b) The annual financial statement of the restructuring year which is audited by the accredited audit organization of the issuer (in case of merger, acquisition, sale of assets);
c) The annual financial statements of the year preceding the restructuring year that are audited by accredited audit organizations of the enterprises participating in the restructuring.
3. c) In case the company registers the offering in the second year succeeding the restructuring year (in case of consolidation), the application for offering shall consist of:
a) The same documents of the application for FPO of shares, public offering of convertible bonds, warrant-linked bonds of a public company, application for public bond offering of this Decree. The annual financial statement of the second year preceding the offering year shall be replaced with: the first annual financial statement after restructuring which must be audited by the accredited audit organization that satisfies the requirements specified in Clause 3 Article 20 of the Law on Securities; the last annual financial statements before restructuring which must be audited by accredited audit organizations of the enterprises participating in the restructuring;
b) The audited financial statements of the year preceding the restructuring year of the enterprises participating in the restructuring.
4. In case the company registers the offering from the second year succeeding the restructuring year onward (in case of merger, acquisition, sale of assets) or the third year succeeding the restructuring year onward (in case of consolidation), the application for offering shall include the same documents as those of the application for FPO of shares, public offering of convertible bonds, warrant-linked bonds of a public company, application for public bond offering of this Decree.
Article 32. Conditions for public securities offering by the consolidated company without undergoing restructuring
A public company that is established after consolidation without undergoing restructuring (hereinafter referred to as “consolidated company”) shall satisfy the following conditions to make FPO of shares, public offering of convertible bonds, warrant-linked bonds:
1. The conditions for public offering of shares or bonds, including profitable business and no accumulated loss as prescribed in Clause 2 of this Article are satisfied.
2. It will be considered that the company makes a profit in the year preceding the offering year and does not have accumulated loss in the offering year when:
a) In case the company registers the offering in the consolidation year: the latest annual financial statement audited by an accredited audit organization of the company with the greatest total assets among the consolidating companies; and the issuer’s latest quarterly financial statement;
b) In case the company registers the offering in the year succeeding the consolidation year: the last annual financial statement before consolidation which is audited by an accredited audit organization of the company with the greatest total assets among the consolidating companies as prescribed in Clause 3 Article 20 of the Law on Securities; the first annual financial statement after consolidation which is audited by an accredited audit organization that satisfies the conditions specified in Clause 3 Article 20 of the Law on Securities; the issuer’s latest quarterly financial statement (if any). Profitability is determined according to total post-tax profit on the last annual financial statement of the company with the greatest total assets among the consolidating companies and the first annual financial statement of the issuer;
c) In case the company registers the offering in the second year succeeding the consolidation year onward: the latest annual financial statement audited by an accredited audit organization, the latest quarter financial statement (if any) of the issuer.
Article 33. Application for public offering of shares by the consolidated company
1. In case the company registers the offering in the consolidation year, the application for offering shall consist of:
a) The same documents as those in the application for FPO of shares, public offering of convertible bonds, warrant-linked bonds of a public company, application for public bond offering of this Decree. The audited annual financial statements of the last 02 years preceding the offering year shall be replaced with:
- The annual financial statements of the last 02 years audited by an accredited audit organization of the company with the greatest total assets among the consolidating companies.
- The last annual financial statement before consolidation of the company with the greatest total assets among the consolidating companies.
b) The latest audited annual financial statements of other consolidating companies.
2. In case the company registers the offering in the year succeeding the consolidation year, the application for offering shall consist of:
a) The same documents as those in the application for FPO of shares, public offering of convertible bonds, warrant-linked bonds of a public company, application for public bond offering of this Decree. The annual financial statements of the last 02 years preceding the offering year audited by an accredited audit organization shall be replaced with:
- The first annual financial statement after consolidation which is audited by an accredited audit organization that satisfies the conditions specified in Clause 3 Article 20 of the Law on Securities; The last annual financial statement before consolidation which is audited by an accredited audit organization of the company with the greatest total assets among the consolidating companies as prescribed in Clause 3 Article 20 of the Law on Securities;
- The annual financial statement of the year preceding the consolidation year audited by an accredited audit organization of the company with the greatest total assets among the consolidating companies.
b) The audited annual financial statements of the year preceding the consolidation year of other consolidating companies.
3. In case the company registers the offering in the second year succeeding the consolidation year, the application for offering shall consist of:
a) The same documents of the application for FPO of shares, public offering of convertible bonds, warrant-linked bonds of a public company, application for public bond offering of this Decree. The annual financial statement of the second year preceding the offering year shall be replaced with: the first annual financial statement after consolidation audited by an accredited audit organization that satisfies the requirements specified in Clause 3 Article 20 of the Law on Securities; the last annual financial statement before consolidation of the company with the greatest total assets among the consolidating companies audited by an accredited audit organization that satisfies the requirements in Clause 3 Article 20 of the Law on Securities;
b) The audited annual financial statements of the year preceding the consolidation year of consolidating companies.
4. In case the company registers the offering from the third year succeeding the consolidation year onward, the application for offering shall include the same documents as those of the application for FPO of shares, public offering of convertible bonds, warrant-linked bonds of a public company, application for public bond offering of this Decree.
Article 34. Conditions for public securities offering after full or partial division of a company
1. Conditions for a public company that is a partially divided company to make an FPO of shares, public offering of convertible bonds or warrant-linked bonds; for a partially divided to make public bond offering:
a) The same conditions for public offering of shares or bonds, including profitable business and no accumulated loss as prescribed in Point b of this Clause;
b) It will be considered that the company makes a profit in the year preceding the offering year and does not have accumulated loss in the offering year when:
In case the company registers the offering in the partial division year and the total assets of the new companies is less than 35% of the divided company: the latest annual financial statement of the company before division audited by an accredited audit organization, the issuer’s latest quarterly financial statement.
In case the company registers the offering in the partial division year and the total assets of the new companies is at least 35% of the divided company: the pro forma financial statement of the year preceding the division year which receives unqualified opinion from an accredited audit organization, the issuer’s latest quarterly financial statement.
In case the company registers the offering in the year succeeding the partial division onward: the latest annual financial statement audited by an accredited audit organization, the issuer’s latest quarter financial statement (if any).
2. The conditions for a public company that is established after full division of a company to make FPO of shares, public offering of convertible bonds, warrant-linked bonds; for a company that is established after full division of a company to make public bond offering are the same as those for making public offering of shares and bonds.
Article 35. Application for public offering of shares after full or partial division of a company
1. In case the company registers the offering within the partial division year, the application for offering by the divided company shall have the same documents as those of the application for FPO offering of shares, public offering of convertible bonds, warrant-linked bonds of a public company, application for public bond offering prescribed in this Decree. The audited annual financial statements of the last 02 years preceding the offering year shall be replaced with:
a) In case the total assets of the new companies is less than 35% of the divided company: the annual financial statements of last 02 years preceding the division year audited by an accredited audit organization of the divided company;
b) In case the total assets of the new companies is at least 35% of the divided company: the annual financial statements of last 02 years preceding the division year audited by an accredited audit organization, the pro forma financial statement of the year preceding the division year guaranteed by an accredited audit organization.
2. In case the company registers the offering in the year succeeding the partial division year, the application for offering by the divided company shall have the same documents as those of the application for FPO offering of shares, public offering of convertible bonds, warrant-linked bonds of a public company, application for public bond offering prescribed in this Decree. The audited annual financial statements of the last 02 years preceding the offering year shall be replaced with:
a) The issuer’s annual financial statement of the year preceding the offering year audited by an accredited audit organization;
b) The company’s annual financial statement of the year preceding the division year audited by an accredited audit organization.
3. In case the company registers the offering from the second year succeeding the partial division year onward, the application for offering shall include the same documents as those of the application for FPO of shares, public offering of convertible bonds, warrant-linked bonds of a public company, application for public bond offering of this Decree.
4. The application for public securities offering by a new company that is established after full division of a company shall include the same documents as those of the application for FPO of shares, public offering of convertible bonds, warrant-linked bonds of a public company, application for public bond offering of this Decree.
Article 36. Conditions for public securities offering in Vietnam by enterprises established and operating under foreign laws (“foreign enterprises”)
1. The enterprise makes a profit in the year preceding the offering year and does not have accumulated loss in the offering year; does not have any debt that is overdue for over 01 years (in case of offering of non-convertible bonds, bonds without warrants) under international accounting standards.
2. There is a decision of a competent authority to approve the issuance plan, the plan for use of capital generated by the public bond offering for investing in the project in Vietnam, the repayment plan (in case of bond issuance).
3. The investment project in Vietnam is approved by a competent authority in Vietnam. The total revenue generated by the offerings in Vietnam does not exceed 30% of the total investment in the project.
4. The foreign issuer does not transfer the raised capital to foreign countries; does not withdraw counterpart capital during the duration of the licensed project.
5. There is underwriting agreement with at least one securities company that is licensed for securities underwriting in Vietnam, in which the underwriter agrees to purchase all the undistributed securities.
6. The issuer has opened an escrow account to receive payments for the offered securities.
7. There is a bank that supervises the use of capital obtained from the offering.
8. There is a securities company that provides IPO advisory services.
9. There is commitment to list or register the shares, list the bonds on the securities trading system at the end of the offering.
10. There is a commitment to fulfill its obligations to the investors in terms of issuance, redemption, assurance of lawful rights and interests of investors and other conditions in case of bond issuance.
Article 37. Application for public securities offering in Vietnam by foreign enterprises
1. The application form No. 05 in the Appendix hereof.
2. The prospectus prescribed in Article 19 of the Law on Securities.
3. The issuer’s charter.
4. The GMS’s decision to approve the issuance plan, the plan for use of revenue generated by the offering and the listing or registration of shares on securities trading systems.
5. The latest annual financial statement audited by an audit organization accredited by a competent authority of the home country, the latest quarter financial statement. The issuer’s financial statements shall be prepared in accordance with international financial statement standards.
6. The decision to approve the investment project issued by a competent authority in Vietnam.
7. The underwriting agreement in which the underwriter agrees to purchase all the undistributed securities according to Form No. 04 in the Appendix hereof. In case of an underwriting group, the underwriting agreements shall be enclosed with the contracts between the underwriters.
8. Written confirmation by the bank or FBB that the offering shareholder has opened an escrow account to receive payment for the offered securities.
9. The written confirmation of the supervisory bank that the use of capital raised obtained from the offering by the issuer is supervised.
10. The IPO advisory service contract with the securities company.
11. The decision of the Board of Directors to approve the application for public securities offering securities.
Article 38. Application for public bond offering in Vietnam by foreign enterprises
1. The application form No. 07 in the Appendix hereof.
2. The decision of the GMS or the Board of Directors or the Board of Members or the company’s owner to approve the issuance plan, the plan for use and repayment of capital generated by the public bond offering, and the listing of bonds on the securities trading system.
3. The commitment to fulfill its obligations to the investors in terms of issuance, redemption, assurance of lawful rights and interests of investors, and other conditions.
4. The underwriting agreement with a Vietnamese securities company in which the underwriter agrees to purchase all the undistributed bonds according to Form No. 08 in the Appendix hereof. In case of an underwriting group, the underwriting agreements shall be enclosed with the contracts between the underwriters.
5. The decision of the Board of Directors, the Board of Members or the company’s owner to approve the application for public offering of bonds.
6. The documents specified in Clauses 2, 3, 5, 6, 8, 9, 10 Article 37 of this Decree.
Article 39. Conditions for public offering of securities by strictly controlled credit institutions
1. The conditions for public offering of shares, bonds prescribed in Clause 1, Clause 2, Clause 3, Clause 4 Article 15 of the Law on Securities and regulations of this Decree are satisfied, except the condition that the credit institution does not have any debt that is overdue for over 01 year (for offering of non-convertible bonds, bonds without warrants) and the condition that the credit institution is making a profit and does not have accumulated loss.
2. There is a plan for restructuring of the strictly controlled credit institution approved by a competent authority.
3. SBV permits the increase in charter capital in accordance with regulations of law on credit institutions.
Article 40. Application for public offering of securities by strictly controlled credit institutions
1. The corresponding documents specified in Article 11, Article 12, Article 20, Article 22, Article 25 of this Decree.
2. The decision of a competent authority to approve the plan for restructuring of the strictly controlled credit institution.
3. SBV’s written permission for increase in charter capital in accordance with regulations of law on credit institutions.
Article 41. Procedures for public securities offering
1. The issuer/the offering shareholder shall submit the application for public securities offering to SSC.
2. The issuer/the offering shareholder shall revise and supplement the application in accordance with Article 22 of the Law on Securities and regulations of this Decree.
3. Within 07 working days from the receipt of the notification from SSC requesting completion of the procedures or issuance of the certificate of registration of public securities offering, the issuer/the offering shareholder shall send SSC 06 copies of the official prospectus.
4. SSC shall decide whether to grant the certificate of registration of public securities offering or reject the application as prescribed in Article 25 of the Law on Securities.
5. Within 07 working days from the issuance of the certificate of registration of public securities offering, the issuer/the offering shareholder shall disclose publish the issuance notice on 01 online newspapers or 03 consecutive issues of a printed newspaper according to Clause 3 Article 25 of the Law on Securities and disclose it on the websites of the issuer/the offering shareholder that is an organization (if any) and SSC. The official prospectus shall be published on the websites of the issuer/the offering shareholder that is an organization (if any) and SSC.
6. The issuer/the offering shareholder shall distribute the securities in accordance with Article 26 of the Law on Securities.
7. Within 10 days from the end of the offering, the issuer or the underwriter, the offering shareholder shall send the report on the amount obtained from offering enclosed with confirmation of the bank or FBB where the escrow account is opened to SSC as prescribed in Clause 5 Article 26 of the Law on Securities and disclose this information on the websites of the issuer/the offering shareholder that is an organization (if any) and SSC.
8. Within 03 working days from the receipt of the satisfactory report, SSC shall:
a) Send a written notification to the issuer/the offering shareholder of the receipt of the report or issue the decision to cancel the offering in the cases specified in Point b, Point c Clause 1 Article 28 of the Law on Securities; such a notification shall also be sent to the Stock Exchange and VSDCC;
b) Publish information about the receipt of the report or the decision on cancellation of the offering on the website of SSC.
9. After receiving the notification from SSC, the issuer/offering shareholder may request unfreezing of the amount obtained from the offering.
Article 42. Settlement of unsubscribed and unpaid shares, fractional shares
1. The issuer shall distribute the unsubscribed and unpaid shares, fractional shares to one or some specific investors (in case of offering to existing shareholders in proportion to their holdings in the company) while ensuring fulfillment of conditions for offering, and that rights and obligations of the investors are not more favorable that those of existing shareholders, unless otherwise approved by the GMS.
2. The GMS or Board of Directors shall determine the criteria and list of investors that may purchase the shares mentioned in Clause 1 of this Article. Persons whose interests are relevant to the distribution of these shares must not vote. These shares will be restricted from transfer for at least 01 year from the ending date of the offering.
3. The distribution of the shares mentioned in Clause 1 of this Article to investors in the following cases is subject to approval by the GMS:
a) The offering to the related persons, organizations and individuals will cause their holdings to exceed the limits specified in Point a and Point b Clause 1 Article 35 of the Law on Securities;
b) The quantity of shares offered to the related persons, organizations and individuals makes up at least 10% of charter capital of the issuer in one offering or in all offerings within the last 12 months.
4. The restrictions prescribed in Clause 2 of this Article do not apply to the shares purchased by the underwriter under the underwriting agreement and in case of settlement of fractional shares.
Article 43. Application for private placement by a public company
1. The application form No. 10 in the Appendix hereof.
2. The GMS’s decision to approve the issuance plan, the plan for use of revenue obtained from the offering, where:
a) The issuance plan shall specify: purposes of the offering, quantity of offered shares; offered price or rules for determination of offer price or authority of the Board of Directors to determine the offer price; criteria for investor selection; quantity of investors; strategic investors, professional securities investors and quantity of shares offered to each investor or the authority of the Board of Directors to identify professional securities investors. Persons whose interests are relevant to the offering must not vote. In case the issuance plan does not specify the offer price or rules for determination thereof, it shall be determined in accordance with the Law on Enterprises;
b) In case the offering is meant to raise capital for project execution, the capital use plan shall include the plan for making up for the deficiency in capital generated by the offering for project execution.
3. The decision of the Board of Directors to approve that the shares are offered to professional securities investors if authorized by the GMS. Persons whose interests are relevant to the offering must not vote.
4. The decision of the Board of Directors to approve the application for offering. For offering of shares of a credit institution, the application shall also include SBV’s written permission for increase in charter capital in accordance with regulations of law on credit institutions. For offering of shares of an insurer, the application shall also include the Ministry of Finance’s written permission for increase in charter capital in accordance with regulations of law on insurance business.
5. A decision of the GMS or the Board of Directors (if authorized by the GMS) to approve the plan for assuring conformable foreign ownership ratio during the offering.
6. The issuer’s commitment to not violate regulations on cross ownership of the Law on Enterprises.
7. Written confirmation by the bank or FBB of the opening of an escrow account to receive payment for the offered shares.
8. Documents providing information about the offering for the investors (if any).
9. Documents about use of the revenue generated by the offering (if any).
Article 44. Conditions for a public company to make private placement at lower prices than face value
1. The shares are only offered to strategic investors and the transfer of shares is restricted for at least 03 years from the ending date of the offering, unless otherwise dictated by an effective court judgment or decision, arbitral decision or a will as prescribed by law.
2. The issuance must not lead to violations against regulations on cross ownership of the Law on Enterprises.
3. The conditions specified in Points a, d and dd Clause 1 Article 31 of the Law on Securities, Clauses 1 and 2 Article 17 of this Decree are satisfied.
Article 45. Application private placement at lower prices than face value
1. The GMS’s decision to approve the issuance plan and the plan for use of revenue obtained from the offering, where:
a) The issuance plan shall specify: purposes of the offering, quantity of offered shares; offer price or rules for determination of offer price or authority of the Board of Directors to determine the offer price; criteria for investor selection; list of strategic investors and quantity of shares offered to each investor. Persons whose interests are relevant to the offering must not vote. In case the issuance plan does not specify the offer price or rules for determination thereof, it shall be determined in accordance with the Law on Enterprises;
b) In case the offering is meant to raise capital for project execution, the capital use plan shall include the plan for making up for the deficiency in capital generated by the offering for project execution.
2. A table that specifies the reference share prices of 60 consecutive trading days before the list of shareholders is closed for survey or the GMS is held to approve the issuance plan, which is certified by 01 securities company.
3. The latest annual financial statement audited by an accredited audit organization.
4. The documents specified in Clauses 1, 4, 5, 6, 7, 8, 9 Article 43 of this Decree.
Article 46. Conditions for a public company to make private placement of warrant-linked preference shares
1. The company's charter specifies that the company has warrant-linked preference shares.
2. The interval between the private placements is at least 06 months form the ending date of the offering according to Clause 7 Article 48 of this Decree.
3. The conditions specified in Points a, b, c, dd Clause 1 Article 31 of the Law on Securities are satisfied.
Article 47. Application for private placement of warrant-linked preference shares by a public company
1. The GMS’s decision to approve the issuance plan and the plan for use of revenue obtained from the offering, where:
a) The issuance plan shall specify: the types of offered shares; attributes of warrant-linked preference shares; quantity of warrant-linked preference shares; offer price or rules for determination thereof or authority of the Board of Directors to determine the offer price; criteria for investor selection; quantity of investors; strategic investors, professional securities investors; plan for exercising warrants (conditions, time limits, exercising ratios; price of calculation of issuance price; authority of the Board of Directors to approve the plan for assuring conformable foreign ownership ratio, other terms). Persons whose interests are relevant to the offering must not vote. In case the issuance plan does not specify the offer price or rules for determination thereof, it shall be determined in accordance with the Law on Enterprises;
b) The plan for use of revenue generated by the offering of warrant-linked preference shares and the plan for use of the revenue for warrant execution. b) In case the offering is meant to raise capital for project execution, the capital use plan shall include the plan for making up for the deficiency in capital generated by the offering for project execution.
2. The issuer’s charter.
3. The documents specified in Clauses 1, 3, 4, 5, 6, 7, 8, 9 Article 43 of this Decree.
Article 48. Procedures for private placement
1. The issuer shall send the application for private placement to SSC.
2. Within 07 working days from the receipt of the satisfactory report, SSC shall issue a written approval and announce the receipt of the application on its website. In case the application is rejected, SSC shall make a written response and provide explanation.
3. The issuer shall complete the private placement within 90 days from the day on which SSC issues the written approval.
4. Within 10 days from the end of the offering, the issuer shall send the report on the revenue generated by the offering enclosed with confirmation of the bank or FBB where the escrow account is opened to SSC in accordance with SSC and disclose this information on the websites of the issuer and SSC.
5. Within 03 days from the receipt of the satisfactory report, SSC shall send a written notification of the receipt of the report to the issuer, the Stock Exchange and VSDCC, and announce the receipt of it on the website of SSC.
6. After receiving the notification from SSC, the issuer may request unfreezing of the amount obtained from the offering.
7. The interval between the private placements shall be at least 06 months from the ending date the private placement, including private placement of shares, convertible bonds, warrant-linked bonds, warrant-linked preference shares; issuance of shares for swap to shareholders of non-public joint stock companies, swapping stakes of contributing members of limited liability companies; issuance shares for swap to pre-selected shareholders in public companies; issuance of shares for swapping debts.
Section 4. ISSUANCE OF SHARES FOR SWAP
Article 49. Conditions for public companies to issue shares for swap with shares of shareholders of non-public joint stock companies; swap with stakes of contributing members of limited liability companies
1. There is an issuance plan which is approved by the GMS of the issuer.
2. The transfer of shares is restricted for at least 01 years from the ending date of the offering, unless otherwise dictated by an effective court judgment or decision, arbitral decision or a will as prescribed by law.
3. The swapped shares or stakes are not restricted from transfer at the time of swapping according to regulations of the company's charter and the law.
4. The latest annual financial statement of the company whose shares or stakes are swapped is audited by an accredited audit organization. The audit report has unqualified opinions.
5. The issuance satisfies regulations on foreign ownership ratio.
6. The swap does not violate regulations on cross ownership of the Law on Enterprises.
7. There are opinions from National Competition Committee (NCC) in case the swap causes the economic concentration to reach a level subject to notification.
8. The interval between the private placements shall be at least 06 months form the ending date of the offering according to Clause 7 Article 48 of this Decree.
Article 50. Application for issuance of shares for swap with shares of shareholders of non-public joint stock companies; swap with stakes of contributing members of limited liability companies
1. The application form No. 11 in the Appendix hereof.
2. The decision of the GMS of the issuer to approve the issuance plan, which must specify: purposes of the issuance; intended quantity of shares to be issued; list of investors; intended quantity of shares to be swapped of each investor; method for determination and ratio of swap. Persons whose interests are relevant to the issuance must not vote.
3. The written commitment of the organizations and individuals holding the shares/stakes that are swapped and the written confirmation of the legal representative of the company whose shares/stakes are swapped that the swapped shares/stakes of the investors are not restricted from transfer.
4. The latest annual financial statement of the company whose shares/stakes are swapped that is audited by an accredited audit organization.
5. A decision of the GMS or the Board of Directors (if authorized by the GMS) to approve the plan for assuring conformable foreign ownership ratio.
6. The issuer’s commitment to not violate regulations on cross ownership of the Law on Enterprises.
7. There are opinions from NCC in case the swap causes the economic concentration level to be subject to notification.
8. Documents providing information about the issuance for the investors (if any).
9. The decision of the Board of Directors to approve the application for issuance. For issuance of shares of a credit institution, the application shall also include SBV’s written permission for increase in charter capital in accordance with regulations of law on credit institutions. For issuance of shares of an insurer, the application shall also include the Ministry of Finance’s written permission for increase in charter capital in accordance with regulations of law on insurance business.
Article 51. Conditions for public companies to issue shares for swap with shares of pre-selected shareholders in other public companies
1. The conditions specified in Article 49 of this Decree are satisfied.
2. There is a written agreement in principle of the swap subjects.
3. In case the swap causes the holdings of the issuer and related persons in the public company to reach the level at which tender offer is mandatory as prescribed in Article 35 of the Law on Securities, the swap shall be subject to approval by the GMS of the public company whose shares are swapped.
Article 52. Application for issuance of shares for swap with shares of pre-selected shareholders in other public companies
1. The documents specified in Article 50 of this Decree.
2. There is a written agreement in principle of the swap subjects.
3. The decision of the GMS of the public company whose shares are swapped to approve the swap in the cases specified in Clause 3 Article 51 of this Decree.
Article 53. Conditions for a public company to issue shares for tender offers
The public company that issues shares for swap with shares of unspecified shareholders of another public company shall carry out the tender offer with the issued shares if the following conditions are satisfied:
1. There is an issuance plan which is approved by the GMS of the issuer.
2. The annual financial statement of the last 02 years satisfy the requirements specified in Clause 3 Article 12 of this Decree; the latest annual financial statement of the company whose shares are swapped is audited by an accredited audit organization.
3. The issuer has appointed a securities company as the tender offer agent.
4. There is a securities company that provides counseling on preparation of the application for issuance of shares for swap, unless the issuer is a securities company.
5. There is commitment to list or register the shares on the securities trading system at the end of the offering.
6. The conditions specified in Points a and e Clause 1 Article 15 of the Law on Securities, Clauses 5, 6, 7 Article 49 of this Decree are satisfied.
Article 54. Application for issuance of shares for tender offer by a public company
1. The application form No. 12 in the Appendix hereof.
2. The prospectus prescribed in Article 19 of the Law on Securities.
3. The issuer’s charter.
4. The decision of the GMS of the issuer to approve the issuance plan, the listing or registration on the securities trading system, which must specify: purposes of the issuance; intended quantity of shares to be issued; method for determination and ratio of swap. In case the issuance for swap causes the holdings of the issuer and related persons to hold at least 80% of voting shares of the public company, the quantity of shares to be swapped shall satisfy the requirements in Point c Clause 1 Article 35 of the Law on Securities.
5. The annual financial statement of the last 02 years satisfy the requirements specified in Clause 3 Article 12 of this Decree; the latest annual financial statement of the company whose shares are swapped is audited by an accredited audit organization.
6. The written commitment of the Board of Directors to list or register shares on the securities trading system.
7. The contract for public offering consulting, tender offer agent with the securities company, unless the issuer is a securities company.
8. The decision of the Board of Directors to approve the application for issuance. For issuance of shares of a credit institution, the application shall also include SBV’s written permission for increase in charter capital in accordance with regulations of law on credit institutions. For issuance of shares of an insurer, the application shall also include the Ministry of Finance’s written permission for increase in charter capital in accordance with regulations of law on insurance business.
9. The written declaration of the issuer of fulfillment of the requirements specified in Point e Clause 1 Article 15 of the Law on Securities.
10. The documents specified in Clauses 5, 6, 7 Article 50 of this Decree.
Article 55. Conditions for issuance of shares for swap under a consolidation/merger contract
1. In the following cases, the issuance of shares for swap under a consolidation/merger contract has to be registered with SSC:
a) Issuance of shares for swap of with shares/stakes under a consolidation contract between the public company and other consolidating companies;
b) The public company issues shares to swap all shares outstanding of the joint stock company or all stakes of the limited liability company under the merger contract.
2. Conditions for issuance of shares for swap under a consolidation/merger contract:
a) There is a plan for consolidation/merger; the plan for issuance of share for swap and the business plan after consolidation/merger which is approved by the GMS, the Board of Members or the owners of the companies participating in the consolidation/merger. Votes of shareholders/members with relevant interests are valid votes;
b) There is a consolidation/merger contract between the parties as prescribed by the Law on Enterprises or relevant laws enclosed with the draft charter of the consolidated company/the acquiring company;
c) The latest annual financial statements of the companies participating in the consolidation/merger are audited by accredited audit organizations;
d) There are opinions from NCC in case the swap causes the level of economic concentration to be subject to notification;
dd) The issuance satisfies regulations on foreign ownership ratio.
The conditions specified in Points e, g, h Clause 1 Article 15 of the Law on Securities are satisfied.
Article 56. Conditions for issuance of shares for swap under a consolidation/merger contract
1. The application form No. 13 or 14 in the Appendix hereof.
2. The prospectus prescribed in Article 19 of the Law on Securities.
3. The decision of the GMS or Boards of Members or owners of the participating companies to approve the consolidation/merger plan; the plan for issuance of share for swap and the business plan after consolidation/merger; approval for the listing or registration of shares on the securities trading system.
4. The consolidation/merger contract.
5. The draft charter of the consolidating company/acquiring company.
6. The latest annual financial statements of the companies participating in the consolidation/merger that are audited by accredited audit organizations as prescribed in Clause 5 Article 20 of the Law on Securities.
7. There are opinions from NCC in case the swap causes the economic concentration level to be subject to notification.
8. A decision of the Boards of Members or owner or GMS or Boards of Directors (if authorized by the GMS) of the participating companies to approve the plan for assuring conformable foreign ownership ratio.
9. The written declaration of the parties of fulfillment of the requirements specified in Point e Clause 1 Article 15 of the Law on Securities.
10. The contract with a securities company for provision of counseling on preparation of the application for issuance of shares, unless the issuer is a securities company.
11. The decision of the Boards of Directors, the Boards of Members or owners of the participating companies to approve the application for issuance. For issuance of shares of a credit institution, the application shall also include SBV’s written permission for increase in charter capital in accordance with regulations of law on credit institutions. For issuance of shares of an insurer, the application shall also include the Ministry of Finance’s written permission for increase in charter capital in accordance with regulations of law on insurance business.
12. The written commitment of the Boards of Directors or Presidents of the Boards of Members or Presidents of the consolidating companies, the Board of Directors of the acquiring company to list or register shares on the securities trading system.
Article 57. Conditions for a public company to issue shares for debt swap
1. There is an issuance plan which is approved by the GMS.
2. The debts being swapped are included in the latest annual financial statement which is audited by an accredited audit organization and approved by the GMS.
3. There is a written agreement in principle of the creditors on debt swap.
4. The interval between the private placements shall be at least 06 months form the ending date of the offering according to Clause 7 Article 48 of this Decree.
5. The conditions specified in Clauses 2, 5, 6, 7 Article 49 of this Decree are satisfied.
Article 58. Conditions for a public company to issue shares for swapping debts
1. The application form No. 15 in the Appendix hereof.
2. The decision of the GMS of the issuer to approve the issuance plan, which must specify: purposes of the issuance; intended quantity of shares to be issued; list of creditors; values of the debts to be swapped and intended quantity of shares to be swapped of each creditor; method for determination and ratio of swap. Persons whose interests are relevant to the issuance must not vote.
3. The issuer’s latest annual financial statement audited by an accredited audit organization.
4. The written agreement in principle of the creditors on debt swap.
5. The conditions specified in Clauses 5, 6, 7, 8, 9 Article 50 of this Decree are satisfied.
Article 59. Procedures for issuance of shares for swap
1. The issuance procedures in the cases specified in Article 49, Article 51 and Article 57 of this Decree shall be the same as the procedures for private placement (without escrow accounts); reports on the issuance shall be prepared in accordance with Clause 3 of this Article.
2. The issuance procedures in the cases specified in Article 53 and Article 55 of this Decree shall be the same as the procedures for public securities offering (without escrow accounts), where:
a) Within 30 working days from the receipt of the satisfactory application for registration of issuance of shares for swap, SSC shall issue a certificate of registration, or issue a written rejection and provide explanation.
b) The investors shall have at least 20 days to register for swap; the report on the issuance shall be prepared in accordance with Clause 3 of this Article.
3. In case of issuance of shares for tender offer according to Article 53 of this Article, within 10 days from the ending date of the issuance, the issuer shall submit a report on result of the issuance to SSC and publish it on the website of the issuer and Stock Exchange. The report on result of issuance of shares for swap under a consolidation contract shall be enclosed with the Certificate of Enterprise Registration of the consolidated company.
4. In case the public company issues shares for tender offer as prescribed in Article 53 of this Decree, in addition to the procedures specified in Clause 2 of this Article, the public company shall comply with the rules for tender offer and follow the procedures for tender offer specified in Section 7 of this Chapter. The application for issuance of shares shall be the application for tender offer.
Section 5. OFFERING AND ISSUANCE FOR OTHER PURPOSES
Article 60. Conditions for scrip issue by public companies
1. There is a scrip issue plan which is approved by the GMS.
2. The undistributed post-tax profit is sufficient to pay dividend according to the latest annual financial statement audited by an accredited audit organization. In case the issuer is a parent company, the distributed profit must not exceed the undistributed post-tax profit on the latest audited consolidated financial statement. In case the distributed profit is lower than undistributed post-tax profit on the consolidated financial statement and higher than the undistributed post-tax profit on the separate financial statement of the parent company, profit shall only be distributed after profits from subsidiary companies are transferred to the parent company.
3. There is a plan for settlement of fractional shares (if any) which is approved by the GMS or Board of Directors.
4. SBV has approved the increase in charter capital in accordance with regulations of law on credit institutions in case the issuer is a credit institution; The Ministry of Finance has approved the increase in charter capital in accordance with regulations of law on insurance business in case the issuer is an insurer.
Article 61. Reporting scrip issue
1. The report form No. 16 in the Appendix hereof.
2. The decision of the GMS to approve the issuance plan.
3. The decision of the Board of Directors to execute the issuance plan.
4. The latest annual financial statement audited by an accredited audit organization.
5. The decision of the competent authority of the subsidiary company to approve the distribution of profits, the statements confirmed by the banks proving that profits have been transferred from the subsidiary companies to the parent company in case the distributed profit is lower than undistributed post-tax profit on the consolidated financial statement and higher than the undistributed post-tax profit on the separate financial statement of the parent company.
6. The decision of the GMS or Board of Directors to approve the plan for settlement of fractional shares and fractional shares (if any).
7. SBV’s written approval for increase in charter capital in accordance with regulations of law on credit institutions in case the issuer is a credit institution; The Ministry of Finance’s written approval for increase in charter capital in accordance with regulations of law on insurance business in case the issuer is an insurer.
Article 62. Conditions for a public company to issue shares to increase share capital from equity
1. There is a plan for issuance of shares to increase share capital from equity which is approved by the GMS.
2. The equity is sufficient for increasing share capital. To be specific:
a) The equity for increasing share capital shall be determined according to the latest financial statement which is audited by an accredited audit organization, including the following sources: share premium, development investment fund; undistributed post-tax profit; other funds (if any) used for increasing charter capital as prescribed by law;
b) In case the public company is a parent company which issues shares to increase share capital from share premium, development investment fund, other funds, the sources shall be determined according to the parent company’s financial statement;
c) In case the public company is a parent company which issues shares to increase share capital from undistributed post-tax profit, distributed profit must not exceed the undistributed post-tax profit on the audited consolidated financial statement. In case the distributed profit is lower than the undistributed post-tax profit on the consolidated financial statement and higher than the undistributed post-tax profit on the parent company’s financial statement, profit shall only be distributed after profits have been transferred from the subsidiary companies to the parent company.
3. The total value of the sources mentioned in Point a Clause 2 of this Article must not fall below the total increase in share capital under the plan approved by the GMS.
4. The conditions specified in Clauses 3, 4 Article 60 of this Decree.
Article 63. Reporting issuance of shares to increase share capital from equity
1. The documents specified in Clauses 1, 2, 3, 4, 6, 7 Article 61 of this Decree.
2. The decision of the competent authority of the subsidiary company to approve the distribution of profits, the statements confirmed by the banks proving that profits have been transferred from the subsidiary companies to the parent company in case the parent company issues shares to increase share capital from undistributed post-tax profit and the funding source is lower than undistributed post-tax profit on the consolidated financial statement and higher than the undistributed post-tax profit on the separate financial statement of the parent company.
Article 64. Conditions for a public company to issue shares under an employee stock option plan (ESOP)
1. The ESOP is approved by the GMS.
2. The total ESOP shares in every 12 months do not exceed 5% of the outstanding shares of the company.
3. There are criteria and list of employees eligible for ESOP, rules for determination of quantity of ESOP shares and execution time that are approved by the GMS (or the Board of Directors if authorized by the GMS).
4. When issuing ESOP shares, the equity must be sufficient for increasing share capital. To be specific:
a) The equity used for issuing ESOP shares shall be determined according to the latest financial statement which is audited by an accredited audit organization, including the following sources: share premium, development investment fund; undistributed post-tax profit; other funds (if any) used for increasing charter capital as prescribed by law;
b) In case the public company is a parent company which issues ESOP shares from share premium, development investment fund, other funds, the funding source shall be determined according to the parent company’s financial statement;
c) In case the public company is a parent company which issues ESOP shares from undistributed post-tax profit, the profit used for issuing ESOP shares must not exceed the undistributed post-tax profit on the audited consolidated financial statement. In case the profit used for issuing ESOP shares is lower than the undistributed post-tax profit on the consolidated financial statement and higher than the undistributed post-tax profit on the parent company’s financial statement, profit shall only be distributed after profits have been transferred from the subsidiary companies to the parent company.
5. When issuing ESOP shares, the total value of the sources mentioned in Clause 4 of this Article must not fall below the total increase in share capital under the plan approved by the GMS.
6. The issuer must open an escrow account to receive payment of the employees for the shares, except issuance of bonus shares to employees.
7. The issuance satisfies regulations on foreign ownership ratio in case ESOP shares are issued employees who are foreign investors.
8. The ESOP shares will be restricted from transfer for at least 01 year from the ending date of the offering.
9. The conditions specified in Clause 4 Article 60 of this Decree are satisfied.
Article 65. Reporting issuance of ESOP shares
1. The report form No. 17 in the Appendix hereof.
2. The decision of the GMS to approve the ESOP which must specify: the quantity of ESOP shares, issue price or rules for determination thereof or authority of the Board of Directors to determine the issue price. If the ESOP does not specify the issue price, it shall be determined in accordance with the Law on Enterprises. Persons having interests relevant to the issuance must not vote.
3. The decision of the GMS (or the Board of Directors if authorized by the GMS) to approve the criteria and list of employees eligible for ESOP, rules for determination of quantity of ESOP shares and execution time. Persons having interests relevant to the issuance must not vote on these issues.
4. The latest annual financial statement audited by an accredited audit organization in case of issuance of bonus shares to employees.
5. The decision of the competent authority of the subsidiary company to approve the distribution of profits, the statements confirmed by the banks proving that profits have been transferred from the subsidiary companies to the parent company in case undistributed post-tax profit is used for issuance of bonus shares to employees and the funding source is lower than undistributed post-tax profit on the consolidated financial statement and higher than the undistributed post-tax profit on the separate financial statement of the parent company.
6. Written confirmation by the bank or FBB of the opening of an escrow account to receive payment for the bonus shares issued to employees.
7. The decision of the GMS or the Board of Directors (if authorized by the GMS) to approve the plan for assuring conformable foreign ownership ratio in case of issuance of shares to employees who are foreign investors.
8. The documents specified in Clause 3, 7 Article 61 of this Decree.
Article 66. Securities of foreign organizations in Vietnam given as bonuses for Vietnamese employees working therein
1. The rights associated with the bonus securities must be executed in accordance with regulations on foreign exchange regulations of Vietnam.
2. These securities must not be traded or transferred on Vietnam’s securities market unless the transfer is dictated by an effective court judgment or decision, arbitral decision or a will as prescribed by law.
Article 67. Procedures for issuance of shares by public companies for swapping convertible bond
1. The public company shall issues shares to swap convertible bonds in accordance with the registered issuance plan and regulations of law. In case convertible bonds are converted before the expiration of the transfer restriction period, the issued shares shall be restricted from transfer for the remainder of the transfer restriction period of the convertible bonds.
2. Within 10 days from the ending date of the issuance, the issuer shall submit a report on result of the issuance to SSC together with SBV’s written approval for increase in charter capital if the issuer is a credit institution; and publish it on the website of the issuer and Stock Exchange.
3. Within 03 days from the receipt of the satisfactory report, SSC shall send a written notification of the receipt of the report to the issuer, the Stock Exchange and VSDCC, and announce the receipt of it on the website of SSC.
Article 68. Procedures for issuance of shares by public companies for execution of warrants
1. The public company shall send the report on issuance of shares to exercise warrants to SSC before the execution, including the following documents:
a) The report form No. 18 in the Appendix hereof;
b) The GMS’s decision to approve the plan for use of revenue obtained from the issuance in case there are changes to the original plan that was approved by the GMS when issuing warrant-linked bonds or warrant-linked preference shares;
c) The decision of the Board of Directors to approve the execution of the plan for issuance of shares for execution of warrants;
d) Written confirmation by the bank or FBB of the opening of an escrow account to receive payment for the issued shares;
dd) SBV’s written approval for increase in charter capital in accordance with regulations of law on credit institutions in case the issuer is a credit institution; The Ministry of Finance’s written approval for increase in charter capital in accordance with regulations of law on insurance business in case the issuer is an insurer.
2. Within 07 working days from the receipt of the satisfactory report, SSC shall send a written notification of the receipt of the report to the issuer and post it on SSC’s website, or issue a written rejection and provide explanation.
3. Within 07 working days from the day on which SSC issues the notification, the issuer shall publish a notification on the websites of the issuer and the Stock Exchange for investors to register their execution of warrants. Investors shall have at least 20 days to register.
4. Within 10 days from the end of the issuance, the issuer shall send the report on result of the issuance enclosed with confirmation of the bank or FBB where the escrow account is opened to SSC; disclose this information on the websites of the issuer and the Stock Exchange.
5. Within 03 days from the receipt of the satisfactory report, SSC shall send a written notification of the receipt of the report to the issuer, the Stock Exchange and VSDCC, and announce the receipt of it on the website of SSC.
6. After receiving the notification from SSC, the issuer may request unfreezing of the amount obtained from the offering.
Article 69. Procedures for scrip issue, issuance of shares to increase share capital from equity, issuance of ESOP shares
1. The issuer shall send the documents specified in Articles 61, 63, 65 of this Decree to SSC.
2. Within 07 working days from the receipt of satisfactory documents, SSC shall send a written notification of the receipt of the documents to the issuer and post it on SSC’s website, or issue a written rejection and provide explanation.
3. Within 07 working days from the day on which SSC issues the notification, the issuer shall publish a notification on the websites of the issuer and the Stock Exchange at least 07 working days before the end of the issuance.
4. The issuance must not last for more than 45 days from the day on which SSC issues the notification of the receipt of satisfactory documents.
5. During the process of scrip issue or issuance of shares to increase share capital from equity, the company may repurchase the fractional shares (if any) as treasury shares under the plan approved by the GMS (or the Board of Directors if authorized by the GMS). The shares repurchased by the company shall be settled in accordance with Clause 7 Article 36 of the Law on Securities and relevant regulations.
6. Within 15 days from the end of the issuance, the issuer shall send reports on result of the issuance to SSC and publish it on the website of the issuer and Stock Exchange. In case of issuance of ESOP shares, these reports shall be enclosed with:
a) The list of employees that participate in the ESOP which specifies the quantity of shares distributed to (for bonus shares) or paid by each employee;
b) The written confirmation by the bank or FBB where the escrow account is opened of the revenue generated by the issuance, except issuance of bonus shares to employees.
7. Within 03 days from the receipt of the satisfactory report, SSC shall send a written notification of the receipt of the report to the issuer, the Stock Exchange and VSDCC, and announce the receipt of it on the website of SSC.
8. After receiving the notification from SSC, the issuer may request unfreezing of the amount obtained from the offering, except issuance of bonus shares to employees.
Section 6. OVERSEAS OFFERING OF SECURITIES BY VIETNAMESE ENTERPRISES
Article 70. Bond offering in foreign countries
Bond offering in foreign countries by Vietnamese enterprises shall be carried out in accordance with regulations on offering corporate bonds.
Article 71. Conditions for overseas offering of bonds by public companies
1. A public company may offer bonds overseas after SSC approves under the conditions specified in Clause 2 of this Article and regulations of the host country are complied with.
2. Conditions for approving overseas offering of bonds:
a) The bond issuance satisfies regulations of law on foreign ownership ratio.
b) There is the GMS’s decision to approve the offering plan and the plan for use of revenue obtained from the offering;
c) Regulations of law on foreign exchange management are complied with;
d) SBV has permitted the overseas issuance of bonds in accordance with regulations of law on credit institutions in case the issuer is a credit institution; The Ministry of Finance has permitted the overseas issuance of bonds in accordance with regulations of law on insurance business in case the issuer is an insurer.
72. Application for overseas offering of bonds
1. The application form No. 19 in the Appendix hereof.
2. The decision of the GMS to approve the bond offering plan and the plan for use of revenue obtained from the offering; approve or authorized the Board of Directors to approve the plan for ensuring conformable foreign ownership ratio.
3. The written confirmation of a permitted bank or FBB that the issuer has opened an escrow account to receive payment for bonds in foreign currencies as prescribed by regulations of law on foreign exchange management.
4. The written approval from SBV for overseas issuance of bonds in accordance with regulations of law on credit institutions in case the issuer is a credit institution; the written approval from the Ministry of Finance for overseas issuance of bonds in accordance with regulations of law on insurance business in case the issuer is an insurer.
5. The draft documents for offering registration with the competent authority of the host country or opinions of an international legal counseling company that the offering does not have to be registered with a competent authority of the host country
Article 73. Conditions for issuance of new shares as the basis for overseas offering of DRs
1. The issuer having shares as the basis for overseas offering of DRs (“underlying shares”) is an organization whose shares are listed on the securities market of Vietnam.
2. The issuer makes a profit in the year preceding the issuance year and does not have accumulated loss by the issuance year.
3. There is a plan for issuance of new underlying shares and a plan for use of revenue obtained from the issuance which is approved by the GMS.
4. The issuance of shares satisfies regulations of law on foreign ownership ratio.
5. There is a securities company that provides counseling on preparation of the application for issuance of shares for swap, unless the underlying share issuer is a securities company.
6. The underlying share issuer has opened an escrow account to receive payment for the shares at a permitted bank or FBB as prescribed by regulations of law on foreign exchange management.
7. If the issuance is meant to raise capital for execution of the issuer’s project, the quantity of sold shares must be at least 70% of the shares issued for project execution. The issuer shall have a plan to make up for the deficiency of capital generated by the offering.
8. There is commitment to list the shares on the securities trading system at the end of the issuance.
9. There is a scheme for overseas issuance of DRs which is approved by the GMS or the Board of Directors (if authorized by the GMS) in accordance with regulations of law of the host country.
10. There is a contract for assistance in issuance of DRs the underlying share issuer and the overseas DR issuer.
11. There is a depositary contract between the overseas DR issuer and a depository member of VSDCC.
12. The conditions for follow-on offering specified in Points a, e Clause 1 and Point c Clause 2 Article 15 of the Law on Securities are satisfied.
Article 74. Application for issuance of underlying shares as the basis for overseas offering of DRs
1. The application form No. 19 in the Appendix hereof.
2. The information disclosure sheet form No. 20 in the Appendix hereof.
3. The decision of the GMS to approve the plan for issuance of underlying shares; approve the plan for use of revenue obtained from the issuance; approve the plan for listing of shares on the securities trading system at the end of the issuance, where:
a) The issuance plan shall specify: the quantity of issued shares, issue price or rules for determination thereof or authority of the Board of Directors to determine the issue price; the plan for assuring conformable foreign ownership ratio. If the issuance plan does not specify the issue price, it shall be determined in accordance with the Law on Enterprises.
b) If the issuance is meant to raise capital for execution of the issuer’s project, the plan shall specify that the quantity of successfully issued sold shares must be at least 70% of the shares issued for project execution. The issuer shall have a plan to make up for the deficiency of capital generated by the offering.
4. The counseling contract with a securities company, unless the issuer is a securities company.
5. The written confirmation of a permitted bank or FBB that the issuer has opened an escrow account to receive payment for bonds in foreign currencies as prescribed by regulations of law on foreign exchange management.
6. The scheme for overseas issuance of DRs.
7. Legal opinions of international legal counseling company that the scheme for overseas issuance of DRs is conformable with regulations of law of the host country.
8. The contract for assistance in issuance of DRs.
9. The depository contract.
10. The decision of the Board of Directors to approve the issuance application. If the issuer is a credit institution, the application must be approved in writing by SBV regarding the change in charter capital. If the issuer is an insurer, the application must be approved in writing by the Ministry of Finance regarding the change in charter capital.
11. The documents specified in Point c Clause 1, Points c, d Clause 2 Article 18 of the Law on Securities, Clause 3 Article 12 of this Decree; the written declaration of compliance to regulations of Point e Clause 1 Article 15 of the Law on Securities.
Article 75. Conditions for registration of assistance in overseas issuance of DRs representing shares outstanding in Vietnam
1. The overseas issuance of DRs representing shares outstanding in Vietnam is conformable with regulations of law on foreign ownership ratio.
2. The GMS of the underlying securities issuer has approved the assistance in overseas issuance of DRs representing shares outstanding.
3. The conditions specified in Clauses 1, 9, 10, 11 Article 73 of this Decree are satisfied.
Article 76. Application for registration of assistance in overseas issuance of DRs representing shares outstanding in Vietnam
1. The application form No. 21 in the Appendix hereof.
2. The information disclosure sheet form No. 22 in the Appendix hereof.
3. The decision of the issuer’s GMS to approve the assistance in overseas issuance of DRs representing shares outstanding in Vietnam.
4. The documents specified in Clauses 6, 7, 8, 9 Article 74 of this Decree.
Article 77. Procedures for approving overseas offering of shares
1. The issuer shall send the application for approval specified in Article 72 of this Decree to SSC before submitting the official application for offering to the competent authority of the foreign country.
2. Within 10 working days from the receipt of the satisfactory application, SSC shall issue a written approval and post it on its website, or issue a written rejection and provide explanation.
3. Within 07 working days from the day on which SSC issues the approval, the issuer shall make an announcement of this approval on the website of the issuer and the Stock Exchange.
4. The issuer shall complete the distribution of shares within 90 days from the day on which approval is granted by SSC. If the issuer fails to complete the distribution of shares within this time limit, SSC will consider extending the time limit for up to 30 more days.
5. Within 10 days from the end of the offering, the issuer shall send the report on the revenue generated by the offering enclosed with confirmation of the bank or FBB where the escrow account is opened to SSC in accordance with SSC and disclose this information on the websites of the issuer and SSC.
6. Within 03 days from the receipt of the satisfactory report, SSC shall send a written notification of the receipt of the report to the issuer, the Stock Exchange and VSDCC, and announce the receipt of it on the website of SSC.
7. After receiving the notification from SSC, the issuer may request unfreezing of the amount obtained from the offering.
Article 78. Procedures for issuance of new shares as the basis for overseas offering of DRs and registration of assistance in overseas issuance of DRs representing shares outstanding in Vietnam
1. The issuer shall send the application for issuance of new shares as the basis for overseas offering of DRs and registration of assistance in overseas issuance of DRs representing shares outstanding as prescribed in Article 74, Article 76 of this Decree to SSC.
2. Within 30 working days from the receipt of the satisfactory application, SSC shall issue the certificate of registration of issuance of new shares as the basis for overseas offering of DRs or approval for assistance in overseas issuance of DRs representing shares outstanding to the issuer make an announcement on the SSC’s website; or issue a written rejection and provide explanation.
3. Within 07 working days from the day on which SSC issues the certificate or approval, the issuer shall make an announcement on the website of the issuer and the Stock Exchange.
4. In case of issuance of new shares as the basis for overseas offering of DRs, the distribution must be completed within 90 days from the effective date of the certificate of registration. If the issuer fails to complete the distribution of shares within this time limit, SSC will consider extending the time limit for up to 30 more days on the basis of the issuer’s request.
5. Within 30 days from the end of the issuance of DRs, the underlying share issuer shall send the report on result of the issuance to enclosed with confirmation of the bank or FBB where the escrow account is opened and the issuer’s confirmation of the issuance result to SSC; disclose this information on the websites of the issuer and the Stock Exchange.
6. Within 03 working days from the receipt of the satisfactory report, SSC shall:
a) Send a written notification to the issuer of the receipt the report or issue the decision to cancel the issuance in case the capital raised is not sufficient to execute the project as prescribed in Point d Clause 2 Article 15 of the Law on Securities; such a notification shall also be sent to the Stock Exchange and VSDCC;
b) Publish information about the receipt of the report or the decision on cancellation of the issuance on the website of SSC.
7. After receiving the notification from SSC, the issuer may request unfreezing of the amount obtained from the offering; register, deposit and list the new shares as the basis for overseas offering of DRs.
8. The issuer of the shares as the basis for overseas offering of DRs shall report and disclose information in accordance with regulations on public securities offering.
Article 49. Cancellation of DRs; issuance of new DRs overseas
1. The DR issuer may only issue DRs on the basis of: the quantity of underlying shares and shares outstanding that have been registered as the basis for issuance of DRs, except in the cases specified in Clause 2 of this Article.
2. The DR issuer may issue DRs that represent the new shares that are issued due to execution of rights of shareholders to the shares being held under the scheme for issuance of DRs. The DR issuer is not required to register the issuance of DRs representing these new shares to SSC.
3. DRs shall be cancelled at the request of their holders or under the scheme for issuance of DRs.
4. When DRs are cancelled, the issuer may, on behalf of their holders, sell a quantity of shares that is corresponding to the quantity of cancelled DRs on the Stock Exchange in Vietnam or transfer these shares to the holders’ accounts opened at depository members of VSDCC as per regulations.
5. The transfer of shares to the DR holders’ accounts opened at depository members of VSDCC as per regulations may only be carried out when:
a) Regulations of Vietnam’s law on holdings of investors and foreign investors are complied with;
b) After shares are transferred to the accounts, the holding of shares of investors and their related persons must not exceed the level at which tender offer is mandatory prescribed in Clause 1 Article 35 of the Law on Securities.
6. DRs that have been cancelled at the request of investors must not be reissued. The quantity of reissued DRs must not exceed the quantity of cancelled DRs.
The quantity of underlying shares shall be included in the quantity of shares held by foreign investors.
Article 81. Responsibilities of DR issuers, shareholders and holders of DRs
1. The DR issuer shall:
a) Not issue DRs beyond the quantity of underlying shares;
b) Comply with the agreements with investors under the scheme for issuance of DRs and regulations of law.
c) Provide information about holders of DRs (names, nationalities, quantity of underlying shares) when closing the list of shares of the issuer of underlying shares in case the DR holders authorize the DR issuer to vote at the GMS.
2. Responsibilities of shareholders and DR holders
a) In case the shareholders of a listed company shall disclose information if they hold a quantity of DRs that causes the total holding of shares and the ratio of shares to DRs held overseas to reach the level at which information disclosure is mandatory.
b) Shareholders of a listed company may purchase a quantity of DRs if the total holding of shares and the ratio of shares to DRs held overseas by the shareholders and their related persons do not exceed the level at which tender offer is mandatory prescribed in Clause 1 Article 35 of the Law on Securities.
c) Major shareholders, internal actors of the underlying share issuer shall disclose information and report to SSC before transferring shares to the account of the DR issuer opened at a depository member of VSDCC.
Section 7. TENDER OFFER OF SHARES, CLOSED-END FUND CERTIFICATES
Article 82. Tender offer rules
1. The tender offer shall ensure fairness among shareholders of the target company and investors of the investment fund.
2. The tender offer parties shall be provided with adequate information to decide their purchase of shares/closed-end fund certificates.
3. Respect the right to autonomy of shareholders of the target company and investors of the investment fund.
4. The organization or individual that makes the tender offer (hereinafter referred to as “offerer") shall appoint a securities company as the tender offer agent.
Article 83. Tender offer cases
1. The cases in which tender offer is mandatory prescribed in Clause 1 Article 35 of the Law on Securities.
2. In addition to the cases mentioned in Clause 1 of this Article, the organization or individual that intends to make a tender offer of shares of a public company or closed-end fund certificates shall comply regulations of this Decree on tender offer.
Article 84. Approving exemption from tender offer
In the cases specified in Point b Clause 2 Article 35 in which tender offer is exempt, the transferors, transferees and their related persons do not have the right to vote on the transfer of shares/closed-end fund certificates. The decision of the GMS/investor assembly on transfer of shares/closed-end fund certificates shall be passed if it is voted for by a number of shareholders/investors that hold 50% of total votes of the shareholders/investors having the right to vote. The specific ratio shall be specified in the Charter of the target company or investment fund.
Article 85. Application for tender offer
1. In case the offerer pays with money, the application shall contain:
a) The application form No. 23 in the Appendix hereof;
b) The information disclosure sheet form No. 24 in the Appendix hereof;
c) A decision of the competent authority of the applying organization to approve the tender offer;
d) The written confirmation of payment guarantee between credit institution and the offerer, or the confirmation that the bank account of the applicant has been frozen in order to ensure that the offerer has sufficient funds for tender offer. These documents shall be sent to SSC before it issues the notice of receipt of adequate documents;
dd) The securities company’s written confirmation that it is the tender offer agent;
e) A document of NCC about economic concentration in case the tender offer causes the level of economic concentration to be subject to notification.
2. In case tender offer with shares, the application shall contain the documents specified in Article 54 of this Decree;
Article 86. Procedures for tender offer
1. The offerer shall submit the application for tender offer to SSC, the target company/the target investment fund management company.
2. Within 03 working days from the receipt of the application, the target company/the target investment fund management company shall disclose information about the receipt of the tender offer on its website and the Stock Exchange’s website.
3. Within 15 working days from the receipt of the satisfactory application, SSC shall announce the receipt of the satisfactory application on its website. In case the application is rejected, SSC shall make a written response and provide explanation.
4. Clause 3 of this Article does not apply in case shares are issued for tender offer as prescribed in Article 53 of this Decree.
Article 87. Responsibilities of the Board of Directors of the target company or the representative board of the target investment fund
1. Within 10 days from the receipt of the application, the Board of Directors of the target company/the representative board of the target investment fund shall publish recommendations to their shareholders/investors regarding the tender offer on its website and send a report to SSC.
2. The recommendations of the Board of Directors of the target company/the representative board of the target investment fund shall be made into a physical document, In case one or some members of the Board of Directors/representative board has dissenting opinions, these opinions must be included in the document.
Article 88. Responsibilities of persons having information about the tender offer
The organization that makes the tender offer, internal actors and related persons of that organization, the tender offer agent and other persons having information about the tender offer must not take advantage of this information to buy or sell securities; provide information, persuade other persons to buy or sell securities before this information is disclosed.
Article 89. Responsibilities of organizations and individuals making tender offers (offerers)
1. From the day on which the supervisory authority of the investor that is an organization issues a tender offer decision or the day on which the investor that is an individual submits the application for tender offer to SSC to the end of the tender offer, the offerer must not:
a) Directly or indirectly purchase or subscribe shares, call option for shares, warrants and convertible bonds of the target company or closed-end fund certificates of the target investment fund, call option for closed-end fund certificates of the target investment fund outside the tender offer;
b) Sell or conclude an agreement to sell the shares or closed-end fund certificates being bid for;
c) Give unfair treatment to holders of the same types of shares or closed-end fund certificates being bid for;
d) Provide information separately for shareholders and investors at different levels or time;
dd) Refuse to buy the shares or closed-end fund certificates being bid for, unless the investor is permitted to withdraw the tender offer in accordance with Article 92 of this Decree;
e) Purchase shares and closed-end fund certificates against the terms and conditions of the tender offer declaration (for payment in cash) or the prospectus (for payment in bonds)
2. The offerer shall comply with regulations of law on foreign ownership ratio in the target company.
3. The offerer shall fully disclose the following information when the tender offer declaration (for payment in cash) or the prospectus (for payment in bonds) is sent:
a) The quantity of shares, convertible bonds, warrants, call options, closed-end fund certificates of the target company or target investment fund that the offerer and the offerer’s related persons own, whether directly or indirectly (through third parties);
b) The transactions and commitments relevant to the shares or closed-end fund certificates of the target company or target investment fund.
Article 90. Obligations of tender offer agents
1. Instruct the investor to carry out the tender offer in accordance with regulations of this Decree and take joint responsibility in case the offerer violates regulations on tender offer.
2. Act as an agent selling shares/closed-end fund certificates; process registration of shares swap, transfer of shares/closed-end fund certificates to the offerer by the deadline specified in the information disclosure sheet (in case of payment with money) or the prospectus (in case of payment with shares).
3. Ensure that the offerer has sufficient funds to carry out the tender offer by the official tender offer date written in the application in case it is paid for with money as prescribed in Clause 1 Article 85 of this Decree.
Article 91. Rules for determination of tender offer price
1. In case of payment with money:
a) The offer price must not fall below the average reference price of the last 60 trading days before the application is submitted and must not fall below the highest buying price of the tender offers of shares/closed-end fund certificates of the target company/target investment fund during this period;
b) During the process of tender offer, the offerer must not adjust the offer price
c) In case the offer price is increased, the offerer must announce the increased price at least 07 days before the deadline for receiving sale proposals and the increased price shall be applied to all registered sellers. In this case, the investor shall have sufficient funds to pay for the increase due to the increase in the offer price.
2. In case of payment with shares, shares swap ratio shall be approved by the GMS of the investor as prescribed in Clause 1 Article 53 of this Decree.
Article 92. Withdrawal of tender offer
1. After disclosing information about the tender offer as prescribed in Clause 1 Article 93 of this Decree until the deadline for receiving sale proposals, the investor may only withdraw the offer in one of the following events:
a) The quantity of shares/closed-end fund certificates proposed for sale or swap fails to reach the minimum ratio specified in the information disclosure sheet (in case of payment with money) or the prospectus (in case of payment with shares);
b) The target company increases the quantity of voting shares through conversion of preference shares;
c) The target company decreases the quantity of voting shares;
d) The target company issues shares, convertible bonds, warrant-linked bonds, call options or the target investment fund issues closed-end fund certificates to increase charter capital of the fund;
dd) The target company sells its assets that are worth at least 35% of total assets according to the latest financial statement.
2. The cases in which the tender offer can be withdrawn must be specified in the information disclosure sheet (in case of payment with money) or the prospectus (in case of payment with shares).
3. The offerer shall submit a report to SSC on the withdrawal of the tender offer within 03 working days from the day on which an event mentioned in Clause 2 of this Article occurs. Within 03 working days from the receipt of the report, SSC shall send a written response.
4. If the withdrawal is permitted, the offerer shall announce the withdrawal on the websites of the investor (if any), the tender offer agent and the Stock Exchange within 24 hours after receiving SSC’s response.
Article 93. Tender offer transaction
1. Within 07 working days from the day on which SSC issues the notice of receipt of the application or issues the certificate of issuance registration (in case of payment with shares), the offerer shall disclose information as follows:
a) Disclose the tender offer notice, the information disclosure sheet (in case of payment with money) or the prospectus (in case of payment with shares) on e websites of the investor (if any), the tender offer agent and the Stock Exchange;
b) The tender offer may only be carried out after at least 03 days from the day on which the offerer discloses information as prescribed in Point a of this Clause.
2. The tender offer shall last 30 – 60 days from the date specified in the tender offer notice.
3. The quantity of shares/closed-end fund certificates offered for sale by shareholders/investors shall not be traded until the end of the tender offer, unless they are withdrawn by the shareholders/investors as prescribed in Clause 4 of this Article.
4. Shareholders/investors may withdraw their sale proposals during the tender offer duration in case the tender offer conditions are changed or there is another organization or individual that makes competitive offer for the shares/closed-end fund certificates of the target company/target investment fund.
5. In case the quantity of shares/closed-end fund certificates offered by the investor is smaller than that offered by the sellers, the quantity of shares/closed-end fund certificates to be purchased shall depend on the ratio of shares/closed-end fund certificates each shareholder/investor offers for sale and ensure that the price/swap ratio is fair to all shareholders/investors.
Article 94. Resumption of tender offer
Within 05 working days from the deadline for receiving sale proposals and the tender offer has to be resumed as prescribed in Point c Clause 1 Article 35 of the Law on Securities, the offerer shall send a notice to SSC, announce the resumption on the websites of the offerer (if any), the tender offer agent and the Stock Exchange.
Article 95. Reporting and disclosing information about tender offer result
1. Within 05 days from the ending date of the tender offer, the offerer shall send a report to SSC, publish it on the websites of the offerer (if any), the tender offer agent and the Stock Exchange.
2. In case of payment with shares, the tender offer result report shall be the issuance result report.
Article 96. Carrying out offering, issuance, tender offer
The Minister of Finance shall provide set forms for securities offering notice, issuance result report, issuance notice, issuance result report, tender offer notice, tender offer result report and other set forms serving the activities provided for in this Chapter.
ORGANIZATION OF THE SECURITIES MARKET
Article 97. Conditions for becoming exchange members
1. The securities company is a clearing member or depository member and has a contract for clearing, payment authorization with a general clearing member; registers as exchange member that trades in debt instruments; The securities company is a depository member and is licensed to perform all securities trade operations as prescribed in Clause 1 Article 72 of the Law on Securities.
2. Requirements in terms of information technology infrastructure, professional processes and personnel under regulations of the Stock Exchange are fulfilled.
3. It is not put under control or special control as prescribed by law.
Article 98. Application for exchange membership
1. The application form No. 25 in the Appendix hereof.
2. The license for establishment and securities operation.
3. The certificate of clearing membership (if the applicant is a clearing member) or certificate of depository membership and the contract for clearing, payment authorization with a general clearing member (if the applicant is not a clearing member) or the certificate of depository membership (for trading debt instruments).
4. The description of information technology infrastructure, professional processes and personnel.
Article 99. Conditions for becoming special exchange members; conditions for State Treasury’s participation in debt instrument trade
1. In order to become a special exchange member, an applicant shall:
a) Be a commercial bank or FBB that has a contributed or provided charter capital not lower than the legal capital and is not put under special control as prescribed by regulations of law on credit institutions;
b) Be a depository member or open an account directly at VSDCC;
c) Fulfill the requirements in terms of information technology infrastructure, professional processes and personnel under regulations of the Stock Exchange.
2. The State Treasury may participate in debt instrument trade if it:
a) Is a organization that opens an account directly at VSDCC;
b) Satisfies the conditions specified in Point c Clause 1 of this Article.
3. Special exchange members and State Treasury may only trade in their own debt instruments.
Article 100. Application for special exchange membership; State Treasury’s participation in debt instrument trade
1. An application for special exchange membership submitted by a commercial bank or FBB shall contain:
a) The documents specified in Clause 1 Article 98 of this Decree;
b) The establishment and operation license or the license for branch establishment issued by a competent authority;
c) The certificate of depository membership or the service contract between VSDCC and the bank or FBB on the direct account opening;
d) The description of information technology infrastructure, professional processes and personnel.
2. An application for participation in debt instrument trade submitted by State Treasury shall contain:
a) The documents specified in Point a and Point d Clause 1 of this Article;
b) The service contract between VSDCC and the State Treasury on the direct account opening.
Article 101. Procedures for registration of exchange membership, special exchange membership, State Treasury’s participation in debt instrument trade
1. Within 03 working days from the receipt of the satisfactory application, the Stock Exchange shall send a document requesting the application to complete the infrastructure, setup the system and connect software programs for data transmission and transaction test.
2. Within 05 working days from the day on which the applicant fulfills the infrastructure requirements as inspected by the Stock Exchange, the applicant shall sign service contracts with the Stock Exchange and register an official trading date.
3. Within 03 working days from the day on which the applicant fulfills the conditions specified in Clause 1 and Clause 2 of this Article, the Stock Exchange shall issue a decision to grant the membership and announce this on its information disclosure medium.
4. Procedures for the State Treasury to participate in debt instrument trade are the same as the procedures specified in Clauses 1, 2, 3 of this Article.
Article 102. Conditions, application, procedures for registration of exchange membership of securities companies that are established after consolidation or merger
1. If at least 01 of the consolidating companies has been an exchange member before the consolidation or the acquiring company is not an exchange member but at least 01 of the acquired companies has been an exchange member before the merger, the following conditions shall be satisfied:
a) The existing information technology infrastructure is used for securities transactions by the securities company that is an exchange member before the consolidation/merger date;
b) Requirements in terms of professional processes and personnel under regulations of the Stock Exchange are fulfilled.
2. If the acquiring company has been an exchange member before consolidation date:
The acquiring securities company may retain its exchange membership after the merger is completed. The Stock Exchange shall issue a decision to cancel the exchange membership of the acquired securities companies after receiving the revised license for establishment and securities operation of the acquiring company which is issued by SSC.
3. In case the consolidated company or acquiring company does not fall into any of the cases specified in Clause 1 and Clause 2 of this Article, the conditions specified in Article 97 of this Decree shall apply.
4. The application for exchange membership in the cases specified in Clause 1 of this Article shall contain:
a) The application form No. 25 (in case of merger) or form No. 26 (in case of consolidating) in the Appendix hereof;
b) The written request for cancellation of exchange membership of the consolidating companies or acquired companies (Form No. 27 in the Appendix hereof);
c) The decision of SSC on approval for the consolidation or merger;
d) The resolutions of the Boards of Directors or Boards of Members or the decisions of the owners of the consolidating companies or the acquiring company that the consolidating company or the acquiring company will keep using the information technology infrastructure, professional processes and personnel for the securities transactions of the securities companies participating in the consolidation or merger. In case of change in personnel and professional processes, relevant documents shall be provided.
5. Procedures for registration of exchange membership in the cases specified in Clause 1 of this Article:
If the application is satisfactory, the Stock Exchange shall issue a decision to grant the exchange member membership upon receipt of the license for establishment and securities operation of the consolidated company or the revised license for establishment and securities operation of the acquiring company which is issued by SSC, and cancel the membership of the consolidating companies or acquired companies.
6. Article 98 and Article 101 of this Decree shall apply to documentation and procedures for registration of exchange membership in the cases specified in Clause 3 of this Article.
Article 103. Voluntary cancellation of exchange membership, special exchange membership, State Treasury’s voluntary withdrawal from participation in debt instrument trade
1. The application for voluntary cancellation of exchange membership shall contain:
a) The application form No. 27 in the Appendix hereof;
b) The decision of the Board of Directors, the Board of Members or the company’s owner on voluntary cancellation of the membership, termination of the securities company's securities brokerage, company dissolution, consolidation or merger;
c) The decision of the Board of Directors, the Board of Members or the company’s owner to approve the plan for settlement of liabilities and other unfulfilled obligations to the Stock Exchange.
2. The application for voluntary cancellation of special exchange membership of a commercial bank or FBB shall contain the documents specified in Point and Point c Clause 1 of this Article.
3. The application for the State Treasury’s voluntary withdrawal from debt instrument trade shall contain the documents specified in Point a Clause 1 of this Article.
Article 104. Procedures for voluntary cancellation of exchange membership, special exchange membership, State Treasury’s withdrawal of participation in debt instrument trade
1. Within 03 working days from the receipt of the satisfactory application, the Stock Exchange shall issue a notification of suspension of transactions, liabilities and other obligations of the member to the Stock Exchange.
The exchange member shall finish the second-time repurchase, resale and repurchase, borrowing and lending transactions between the exchange member and its clients (if any) before the suspension date.
2. Within 24 hours from the receipt of the notification from the Stock Exchange, the exchange member shall announce the suspension of transactions and cancellation of membership.
3. Within 30 days from the receipt of the notification from the Stock Exchange as prescribed in Clause 1 of this Article, the member shall fulfill its obligations as notified.
4. Within 05 working days from the day on which the member fulfills its obligations as prescribed in Clause 3 of this Article, the Stock Exchange shall issue a decision on membership cancellation.
5. During the period over which transactions are suspended to cancel the exchange membership, the securities company must not sign contracts to open securities trading accounts; must not renew contracts with clients to make transactions through the trading system of the Stock Exchange; finalize and transfer accounts at the request of the clients (if any).
6. Procedures for the State Treasury to voluntarily withdraw from debt instrument trade are the same as the procedures specified in Clauses 1, 2, 3, 4 of this Article.
Article 105. Suspension of members from transaction
1. The Stock Exchange shall suspend some or all transactions of a member in the following cases:
a) The member is suspended from securities brokerage or proprietary trading; suspended from securities depository, clearing, payment for securities transactions;
b) The member fails to eliminate the causes for being put under control or special control as prescribed by law;
c) The conditions specified in Clause 2 Article 97, Article 99 of this Decree are not satisfied by the deadline imposed by the Stock Exchange;
d) The member is permitted by SSC to suspend securities brokerage or proprietary trading;
dd) The certificate of clearing membership is revoked without a contract for clearing, payment authorization with the general exchange member (if the exchange member is a clearing member);
e) There is no contract or unexpired contract for clearing, payment authorization with the general exchange member (if the exchange member is a non-clearing member);
g) Other cases specified in the regulations of the Stock Exchange.
2. The scope and duration of suspension shall be determined in accordance with regulations of the Stock Exchange.
Article 106. Mandatory cancellation of exchange membership and special exchange membership
1. Cases of mandatory cancellation of exchange membership and special exchange membership:
a) The member fails to fulfill the obligations as requested by the Stock Exchange within 60 days from the day on which the Stock Exchange issues the notification of suspension of transactions as prescribed in Article 104 of this Decree;
b) The member fails to carry out transactions via the trading system of the Stock Exchange within 60 days from the day on which the Stock Exchange issues the decision to grant membership;
c) The causes of suspension are not eliminated within the suspension period;
d) The certificate of securities depository registration or depository member registration certificate is revoked;
dd) Other cases specified in the regulations of the Stock Exchange.
2. Upon expiration of the time limit specified in Point a Clause 1 of this Article, the Stock Exchange shall issue a decision on exchange membership cancellation.
3. Procedures for mandatory cancellation of exchange membership in the cases specified in Points b, c, d, dd Clause 1 of this Article:
a) In any of the events specified in Points b, c, d, dd Clause 1 of this Article, the Stock Exchange shall issue a notification of termination of transactions, liabilities and other obligations of the member to the Stock Exchange.
The exchange member shall finish the repurchase, resale and repurchase, borrowing and lending transactions between the exchange member and its clients (if any) before the suspension date.
b) Within 24 hours from the receipt of the notification from the Stock Exchange, the exchange member shall announce the suspension of transaction and cancellation of membership;
c) Within 30 days from the receipt of the notification from the Stock Exchange as prescribed in Point a of this Clause, the member shall fulfill its liabilities as notified;
d) Within 05 working days from the day on which the member fulfills its obligations as notified by the Stock Exchange or upon the expiration of the period specified in Point c of this Clause, the Stock Exchange shall issue a decision on membership cancellation.
4. During the period over which transactions are suspended to cancel the exchange membership, the securities company shall comply with the regulations of Clause 5 Article 104 of this Decree.
Section 2. LISTING SECURITIES IN VIETNAM BY DOMESTIC ISSUERS
Article 107. General provisions
1. The financial statement of the applicant for listing shall comply with the following regulations:
a) The financial statement shall be prepared in accordance with accounting laws. If the applicant is a parent company, it shall submit the consolidated financial statement and the parent company’s financial statement. If the applicant is the superior accounting unit having affiliated units that are not juridical persons, it shall submit the combined financial statement;
b) The annual financial statement must be audited by an accredited audit organization with unqualified opinions. In case the audit report has qualified opinions, they must not affect the eligibility for listing; the applicant shall provide explanatory documents confirmed by the audit organization that the qualified opinions do not affect the eligibility for listing;
c) In case of consolidation or merger: the financial statements of the last period from the beginning date of the fiscal year to the consolidation date of the consolidating companies and the financial statement of the first period from the consolidation date to the end of the fiscal year of the consolidated company shall be conformable with Point b of this Clause; annual financial statements of the companies participating in the consolidation or merger must be audited by accredited audit organizations;
d) In case the application for listing is sent to the Stock Exchange after the deadline for disclosing the quarterly financial statement, the must be included in the application. If the application is submitted after the ending date of the period covered by the mid-year financial statement, the application must include the mid-year financial statement which is audited by an accredited audit organization;
dd) In case the issuer issues shares to increase charter capital after the end of the latest audited accounting period (except scrip issue, issuance of shares to increase share capital from equity, issuance of bonus shares to employees, issuance of shares for bond conversion), the equity report which is audited by an accredited audit organization or the financial statement which is audited by an accredited audit organization must be included.
2. The pro forma financial statement which receives unqualified opinion from an accredited audit organization.
3. Return on equity (ROE) shall be the ratio (%) of post-tax profit to average equity in the year, where:
a) If the applicant is a parent company, ROE shall be determined according to the consolidated financial statement, the post-tax profit shall be the post-tax profit of shareholders of the parent company and equity shall exclude interests of non-controlling shareholders. If the applicant is a superior accounting unit whose dependent units are not juridical persons, the post-tax profit shall be determined according to the combined financial statement;
b)In case the company undergoes conversion, consolidation, merger, division in the year, the post-tax profit shall be the total post-tax profit of the periods in the year preceding the application year which is determined according to the audited financial statement of each period; the equity shall be the average of the beginning equity and ending equity of the periods;
c) If the applicant is a public company that is established after consolidation, merger, division and other cases of restructuring, the positive ROE shall be determined according to the positive post-tax profit and positive average equity;
d) Average equity is the average of beginning equity and ending equity, excluding sources of funding and other funds according to the audited financial statement mentioned in Clause 1 of this Article.
Listed securities shall be categorized by market as follows:
1. List of shares, fund certificates, secured warrants, non-voting DRs and other financial products;
2. List of debt instruments;
3. List of corporate bonds;
4. List of derivatives.
Article 109. Conditions for listing shares
1. A company may have its shares listed if:
a) It is a joint stock company whose contributed charter capital at the time of listing application is at least 30 billion VND according to the latest audited financial statement and its net worth is at least 30 billion VND according to weighted mean of buying price of shares in the latest public offering as prescribed by this Decree, or the average reference price of shares traded on UPCOM over the last 30 sessions before the application is submitted or the weighted mean of buying price in the first offering of the equitized enterprise.
b) The GMS has approved the listed; shares have been traded on UPCOM for at least 02 years unless the applicant has made public securities offering or equitized;
c) ROE of the year preceding the application year shall be at least 5% and the business performance of 02 years preceding the application year is profitable; there are no debts that have been overdue for more than 01 year up to the application date; there is not accumulated loss according to the latest audited annual financial statement or examined mid-year financial statement in case the application is submitted after ending date of the period covered by the mid-year financial statement;
d) Unless the enterprise is equitized, the applying organization shall have at least 15% of voting shares being held by at least 100 shareholders other than major shareholders; in case the organization’s charter capital is at 1000 billion VND or over, the ratio shall be 10%;
dd) Shareholders that are individuals, organizations represented by President of the Board of Directors, members of the Board of Directors, Chief Controller, Controllers, General Director/Director, Deputy Director/Deputy General Director, chief accountant, Financial Director and people holding equivalent managerial positions shall have commitment to keep holding 100% of the shares they are holding for 06 months from the first trading date of on the Stock Exchange and 50% of these shares for the next 06 months, not including the state-owned shares owned by these individuals;
e) The company and its legal representative have not face penalties for 02 years before the application date for the violations specified in Article 12 of the Law on Securities;
g) There is a securities company that provides listing advisory services, unless the applying organization is a securities company.
2. The classification, arrangement of shares shall comply listing regulations of VNX, including: charter capital, net worth, operating period, financial status, ratio of shareholders other than major shareholders, company administration.
Article 110. Application for listing of shares or fund certificates
1. The application for listing of shares by a company making public offering of shares or an equitized enterprise shall include:
a) The application form No. 28 in the Appendix hereof;
b) The prospectus form No. 29 in the Appendix hereof; the offering registration certificate issued by SSC, the report on result of public securities offering prepared by the applicant (or the decision issued by a competent authority to approve the equitization scheme if the applicant is an equitized enterprise); the decision of the GMS to approve the listing of shares;
c) The shareholder register of the applying organization which is prepared within 01 month before the application is submitted; enclosed with the list of major shareholders, strategic shareholders, internal actors and their related persons (quantity, holding, transfer restriction time (if any));
dd) Commitment of the shareholders that are individuals, organizations represented by President of the Board of Directors, members of the Board of Directors, Chief Controller, Controllers, General Director/Director, Deputy Director/Deputy General Director, chief accountant, Financial Director and people holding equivalent managerial positions to keep holding 100% of the shares they are holding for 06 months from the first trading date of on the Stock Exchange and 50% of these shares for the next 06 months;
d) The listing advisory service contract, unless the applying organization is a securities company;
e) The certificate issued by VSDCC that the shares of the applying organization have been collectively registered;
g) The Certificate of Enterprise Registration, establishment and operation license or an equivalent document;
h) The financial statements of the last 02 years before the application year as prescribed in Clause 1 Article 107 of this Decree.
2. The application prepared by a company that has been trading on UPCOM for at least 02 years shall include:
a) The documents specified in Points a , c, d, dd, g, h Clause 1 of this Article;
b) The decision of the GMS to approve the listing;
c) The prospectus form No. 29 in the Appendix hereof.
3. The application for listing of certificates of a closed-end fund, real estate investment fund, exchange traded fund (ETF) and shares of a public investment company shall include:
a) The application form No. 28 in the Appendix hereof;
b) The certificate of registration of the securities investment fund, the Establishment and operation license of the investment company enclosed with the prospectus, investor register or shareholder register;
c) The report on investment portfolio of the fund or investment company at the registration date confirmed by the supervisory bank;
d) The certificate of registration of fund certificates or shares of the investment company issued by VSDCC.
4. After approving the listing, the Stock Exchange shall send a copy of the application for listing to SSC.
Article 111. Procedures for listing registration
1. Within 30 working days from the receipt of the satisfactory application, the Stock Exchange shall issue a decision to approve the listing, or issue a written rejection and provide explanation.
2. Within 90 days from the day on which listing is approved, the applying organization shall put its securities into trading.
Article 112. Conditions for listing shares of public companies that are established after consolidation, merger, division and other cases of restructuring
1. Conditions for listing the consolidated company on the Stock Exchange:
a) If all consolidating companies are listed companies, the consolidated company will be listed if all consolidating companies do not incur losses for 02 consecutive years according to the annual financial statements of the last 02 years before the consolidation year of the consolidating companies;
b) If all consolidating companies are listed companies and at least 01 of which incurs losses in the last 02 years before the consolidation year, the consolidated company will be listed if its ROE is a positive number according to the pro forma financial statement of the year preceding the consolidation year of the consolidated company;
c) In case listed companies are consolidated with unlisted companies and the total assets of the unlisted companies are below 35% of the total assets of the listed company with the greatest total assets, the consolidated company will be listed if the consolidating listed companies do not incur losses in 02 consecutive years according to the annual financial statements of 02 years preceding the consolidation year of the listed companies;
d) In case listed companies are consolidated with unlisted companies and the total assets of the unlisted companies are at least 35% of the total assets of the listed company with the greatest total assets, the consolidated company must satisfy the conditions for listing specified in Clause 1 Article 109 of this Decree (except the required net worth and registration time on UPCOM); fulfillment of the conditions specified in Point c Clause 1 Article 109 of this Decree shall be determined according to the pro forma financial statement of 02 years preceding the consolidation year of the consolidated company;
d) In case all consolidating companies are unlisted companies but at least one of them has been registered on UPCOM for at least 02 years or has made public offering of shares and the total assets of the consolidating companies are smaller than 35% of total assets of the company with the greatest assets that has been registered on UPCOM or has made public offering of shares, the consolidated company shall satisfy the listing conditions specified in Clause 1 Article 109 of this Decree (except the required net worth and registration time on UPCOM). Fulfillment of the conditions specified in Point c Clause 1 Article 109 of this Decree shall be determined according to:
- The annual financial statements of the last 02 years preceding the listing year of the consolidating company with the greatest assets that has been registered on UPCOM or has made public offering of shares (if the application for listing is submitted in the consolidation year).
- The annual financial statement of the year preceding the consolidation year of the consolidating company with the greatest assets that has been registered on UPCOM or has made public offering of shares; the financial statement of the last accounting period from the beginning date of the fiscal year to the consolidation date of the consolidating company with the greatest assets that has been registered on UPCOM or has made public offering of shares and the financial statement of the first accounting period from the consolidation date to the end of the fiscal year of the consolidated company (if the application for listing is submitted in the year succeeding the consolidation year). The equity of the year preceding the listing year shall be the average of the beginning equity and the ending equity of the periods; post-tax profit of the year preceding the listing year shall be the total post-tax profit of the periods according to the financial statement of the last accounting period from the beginning date of the fiscal year to the consolidation date of the consolidating company with the greatest assets that has been registered on UPCOM or has made public offering of shares and the financial statement of the first accounting period from the consolidation date to the end of the fiscal year of the consolidated company
- The financial statement of the last accounting period from the beginning date of the fiscal year to the consolidation date of the consolidating company with the greatest assets that has been registered on UPCOM or has made public offering of shares and the financial statement of the first accounting period from the consolidation date to the end of the fiscal year of the consolidated company. The annual financial statement of the year preceding the listing year of the consolidated company (if the application for listing is submitted in the second year succeeding the consolidation year). Post-tax profit of the consolidation year shall be the total post-tax profit of the periods according to the financial statement of the last accounting period from the beginning date of the fiscal year to the consolidation date of the consolidating company with the greatest assets that has been registered on UPCOM or has made public offering of shares and the financial statement of the first accounting period from the consolidation date to the end of the fiscal year of the consolidated company;
e) In case all consolidating companies are unlisted companies but at least one of them has been registered on UPCOM for at least 02 years or has made public offering of shares and the total assets of the consolidating companies are at least than 35% of total assets of the company with the greatest assets that has been registered on UPCOM or has made public offering of shares, the consolidated company shall satisfy the listing conditions specified in Clause 1 Article 109 of this Decree (except the required net worth and registration time on UPCOM). Fulfillment of the conditions specified in Point c Clause 1 Article 109 of this Decree shall be determined according to:
- The pro forma financial statements of the last 02 years preceding the consolidation year of the consolidated company (if the application for listing is submitted in the consolidation year).
- The pro forma financial statement of the year preceding the consolidation year of the consolidated company; the pro forma financial statement of the last accounting period from the beginning date of the fiscal year to the consolidation date of the consolidating company with the greatest assets that has been registered on UPCOM or has made public offering of shares and the financial statement of the first accounting period from the consolidation date to the end of the fiscal year of the consolidated company (if the application for listing is submitted in the year succeeding the consolidation year). The equity of the year preceding the listing year shall be the average of the beginning equity and the ending equity of the periods; post-tax profit of the year preceding the listing year shall be the total post-tax profit of the periods according to the pro forma financial statement of the last accounting period from the beginning date of the fiscal year to the consolidation date of the consolidating company and the financial statement of the first accounting period from the consolidation date to the end of the fiscal year of the consolidated company.
- The pro forma financial statement of the year preceding the consolidation year of the consolidated company; the pro forma financial statement of the last accounting period from the beginning date of the fiscal year to the consolidation date of the consolidating company with the greatest assets that has been registered on UPCOM or has made public offering of shares and the financial statement of the first accounting period from the consolidation date to the end of the fiscal year of the consolidated company (if the application for listing is submitted in the year succeeding the consolidation year). The equity of the year preceding the listing year shall be the average of the beginning equity and the ending equity of the periods; post-tax profit of the year preceding the listing year shall be the total post-tax profit of the periods according to the pro forma financial statement of the last accounting period from the beginning date of the fiscal year to the consolidation date of the consolidating company and the financial statement of the first accounting period from the consolidation date to the end of the fiscal year of the consolidated company.
g) In cases other than those specified in Points a, b, c, d, dd, e of this Clause, the consolidated company shall satisfy the listing conditions specified in Clause 1 Article 109 of this Decree.
2. Conditions for listing shares of the acquiring company on the Stock Exchange:
a) If all companies participating in the merger are listed, the acquiring company will stay listed if the acquiring company and the acquired companies do not incur losses for 02 consecutive years according to the annual financial statements of the last 02 years preceding the merger year of the companies participating in the merger;
b) If all companies participating in the merger are listed companies and at least 01 of which incurs losses in the last 02 consecutive years before the merger year, the acquiring company will stay listed if its ROE is a positive number according to the pro forma financial statement of the year preceding the merger year of the acquiring company;
c) If the acquiring company is listed, one of the acquired companies is not listed and the total assets of the acquired companies are smaller than 35% of total assets of the acquiring company, the acquiring company will stay listed if it does not incur losses for 02 consecutive years according to the annual financial statements of the last 02 years preceding the merger year of the acquiring company;
d) If the acquiring company is listed, one of the acquired companies is not listed and the total assets of the acquired companies are at least than 35% of total assets of the acquiring company, the applicant shall satisfy the conditions specified in Clause 1 Article 109 of this Decree (except required net worth and registration time of UPCOM); fulfillment of the conditions specified in Point c Clause 1 Article 109 of this Decree shall be determined according to the pro forma financial statement of the acquiring company of the last 02 years preceding the merger year;
dd) If the acquiring company is not listed but has been registered on UPCOM for at least 02 years or has made public offering of shares, and the total assets of the acquired companies are smaller than 35% of total assets of the acquiring company, the applicant shall satisfy the conditions specified in Clause 1 Article 109 of this Decree (except required net worth and registration time of UPCOM); fulfillment of the conditions specified in Point c Clause 1 Article 109 of this Decree shall be determined according to the annual financial statements of the last 02 years preceding the listing year of the acquiring company;
e) If the acquiring company is not listed but has been registered on UPCOM for at least 02 years or has made public offering of shares, and the total assets of the acquired companies are at least 35% of total assets of the acquiring company, the applicant shall satisfy the conditions specified in Clause 1 Article 109 of this Decree (except required net worth and registration time of UPCOM); fulfillment of the conditions specified in Point c Clause 1 Article 109 of this Decree shall be determined according:
- The pro forma financial statements of the last 02 years preceding the merger year of the applicant (if the application for listing is submitted in the merger year).
- The pro forma financial statement of the year preceding the merger year and the latest annual financial statement of the acquiring company (if the application for listing is submitted in the year succeeding the merger year);
- The annual financial statements of the last 02 years preceding the listing year of the applicant (if the application for listing is submitted in the second year succeeding the merger year);
g) In case of merger other than the cases specified in Points a, b, c, d, dd, e of this Clause, the listing conditions specified in Clause 1 Article 109 of this Decree shall be satisfied.
3. Conditions for listing on the Stock Exchange after full or partial division of a company:
a) Conditions for listing of a partially divided company and the new company established after division shall be the same as those specified in Clause 1 Article 109 of this Decree;
b) In case listed company is partially divided, the divided company will stay listed if it satisfy the conditions for public companies specified in the Law on Securities and does not incur losses continuously for 02 years according to the annual financial statements of the last 02 years preceding the division year of the divided company;
c) In case listed company is partially divided, the divided company will stay listed if it satisfy the conditions for public companies specified in the Law on Securities and does not incur losses continuously for 02 years according to the annual financial statements of the last 02 years preceding the division year of the divided company;
d) If the partially divided company is not listed but has been registered on UPCOM for at least 2 years or has made public offering of shares, and the total assets of the new company are smaller than 35% of total assets of the divided company, the divided company shall satisfy the conditions specified in Clause 1 Article 109 of this Decree (except required net worth and registration time of UPCOM); fulfillment of the conditions specified in Point c Clause 1 Article 109 of this Decree shall be determined according to the annual financial statements of the last 02 years preceding the listing year of the divided company;
dd) If the partially divided company is not listed but has been registered on UPCOM for at least 2 years or has made public offering of shares, and the total assets of the new company are at least 35% of total assets of the divided company, the divided company shall satisfy the conditions specified in Clause 1 Article 109 of this Decree (except required net worth and registration time of UPCOM); fulfillment of the conditions specified in Point c Clause 1 Article 109 of this Decree shall be determined according to:
- The pro forma financial statements of the last 02 years preceding the listing year of the divided company (if the application for listing is submitted in the division year).
- The pro forma financial statement of the year preceding the division year and the latest annual financial statement of the divided company (if the application for listing is submitted in the year succeeding the division year);
- The annual financial statements of the last 02 years of the divided company (if the application for listing is submitted in the second year succeeding the division year);
e) In cases other than those specified in Points b, c, d, dd of this Clause, the divided company shall satisfy the listing conditions specified in Clause 1 Article 109 of this Decree.
4. Conditions for listing on the Stock Exchange after restructuring in the cases other than those specified in Clauses 1, 2, 3 of this Article:
a) A listed company that is restructured may stay listed if it does not incur losses continuously for 02 years preceding the restructuring year according to the pro forma financial statements of the last 02 years preceding the restructuring year;
b) If the restructured company is not listed but has been registered on UPCOM for at least 2 years or has made public offering of shares, it shall satisfy the conditions specified in Clause 1 Article 109 of this Decree (except required net worth and registration time of UPCOM); fulfillment of the conditions specified in Point c Clause 1 Article 109 of this Decree shall be determined according to:
- The pro forma financial statements of the last 02 years preceding the listing year of the restructured company (if the application for listing is submitted in the restructuring year).
- The pro forma financial statement of the year preceding the division year and the latest annual financial statement of the restructured company (if the application for listing is submitted in the year succeeding the restructuring year);
- The annual financial statements of the last 02 years of the restructured company (if the application for listing is submitted in the second year succeeding the restructuring year);
c) In case of restructuring other than those specified in Point a and Point b of this Clause, the restructured company shall satisfy the listing conditions specified in Clause 1 Article 109 of this Decree.
Article 113. Procedures and documentation for listing shares on the Stock Exchange of public companies after consolidation
1. In the cases specified in Point a, c Clause 1 Article 112 of this Decree, the application for listing shall contain the documents specified in Points a, b, c, e, g, h Clause 1 Article 110 of this Decree, the financial statement mentioned in Point h Clause 1 Article 110 of this Decree shall be replaced with the annual financial statements of the last 02 years that are audited by accredited audit organizations of the consolidating enterprises.
2. In the cases specified in Point a, c Clause 1 Article 112 of this Decree, the application for listing shall contain the documents specified in Points a, b, c, e, g, h Clause 1 Article 110 of this Decree, the financial statement mentioned in Point h Clause 1 Article 110 of this Decree shall be replaced with the annual financial statements of the last 02 years of the consolidating enterprises and the pro forma financial statement of the applying organization of the year preceding the consolidation that are audited by accredited audit organizations.
3. In the cases specified in Point d Clause 1 Article 112 of this Decree, the application for listing shall contain the documents specified in Clause 2 Article 110 of this Decree, the financial statement mentioned in Point a Clause 2 Article 110 of this Decree shall be replaced with the annual financial statements of the last 02 years of the consolidating enterprises and the pro forma financial statement of the applying organization of the last 02 years preceding the consolidation that are audited by accredited audit organizations.
4. In the cases specified in Point dd Clause 1 Article 112 of this Decree, the application for listing shall contain the documents specified in Clause 2 Article 110 of this Decree; the annual financial statement mentioned in Point a Clause 2 of Article 110 shall be replaced with:
a) If the application for listing is submitted in the consolidation year: the annual financial statements of the last 02 years preceding the listing year of the consolidating enterprises;
b) If the application for listing is submitted in the year succeeding the consolidation year: the financial statements of the year preceding the consolidation year of the consolidating enterprises; the financial statement of the last accounting period from the beginning date of the fiscal year to the consolidation date of the consolidating companies and the financial statement of the first period from the consolidation date to the end of the fiscal year of the consolidated company.
c) If the application for listing is submitted in the second year succeeding the consolidation year: the financial statements of the year preceding the consolidation year of the consolidating companies; the financial statement of the last accounting period from the beginning date of the fiscal year to the consolidation date of the consolidating companies and the financial statement of the first period from the consolidation date to the end of the fiscal year of the consolidated company; the financial statement of the year preceding the listing year of the consolidated company.
5. In the cases specified in Point e Clause 1 Article 112 of this Decree, the application for listing shall contain the documents specified in Clause 2 Article 110 of this Decree; the annual financial statement mentioned in Point a Clause 2 of Article 110 shall be replaced with:
a) If the application for listing is submitted in the consolidation year: the audited annual financial statements of the last 02 years of the consolidating enterprises, the pro forma financial statements of the last 02 years preceding the consolidation listing year of the applying organization which is audited by an accredited audit organization;
b) If the application for listing is submitted in the year succeeding the consolidation year: the financial statements of the year preceding the consolidation year and the financial statement of the last accounting period from the beginning date of the fiscal year to the consolidation date of the consolidating enterprises that are audited by accredited audit organizations; the pro forma financial statement of the year preceding the consolidation year of the applying organization which is audited by an accredited audit organization; the pro forma financial statement of the last accounting period from the beginning date of the fiscal year to the consolidation date of the consolidated company and the financial statement of the first accounting period from the consolidation date to the end of the fiscal year of the applying organization;
c) If the application for listing is submitted in the second year succeeding the consolidation year: the financial statements of the year preceding the consolidation year of the consolidating companies; the pro forma financial statement of the last accounting period from the beginning date of the fiscal year to the consolidation date of the consolidating companies and the financial statement of the first period from the consolidation date to the end of the fiscal year of the consolidated company; the financial statement of the year preceding the listing year of the consolidated company.
6. In the cases specified in Point g Clause 1 Article 112 of this Decree, the application for listing shall contain the documents specified in Clause 1 Article 110 of this Decree.
7. Procedures for registration of listing in the cases specified in Clauses 1, 2, 3 of this Article:
a) Within 30 days from the day on which SSC confirms the completion of registration of the public company, the consolidated company shall register for listing at the Stock Exchange;
b) Within 30 working days from the receipt of the satisfactory application, the Stock Exchange shall issue a decision to approve the listing, or issue a written rejection and provide explanation.
8. Procedures for listing in the cases specified in Clauses 4, 5, 6 shall be carried out in accordance with Decree 111 of this Decree.
Article 114. Documentation and procedures for continued listing, listing of shares after merger
1. The application for continued listing in the cases specified in Point a and Point c Clause 2 Article 112 of this Decree shall contain:
a) The application form No. 30 in the Appendix hereof;
b) The Certificate of Enterprise Registration, establishment and operation license or an equivalent document;
c) The revised Certificate of Securities Registration issued by VSDCC.
d) The annual financial statements of the last 02 years preceding the merger year of the acquiring company and the acquired companies.
2. The application for continued listing in the cases specified in Point b and Point c Clause 2 Article 112 of this Decree shall contain:
a) The application form No. 30 in the Appendix hereof;
b) The pro forma financial statement of the year preceding the merger year of the acquiring company which is verified by an accredited audit organization;
c) The annual financial statements of the last 02 years preceding the merger year of the acquiring company and the acquired companies;
d) The documents specified in Point b and Point c Clause 1 of this Article.
3. The application for continued listing in the cases specified in Point d Clause 2 Article 112 of this Decree shall contain:
a) The documents specified in Point a and Point d Clause 2 of this Article, Points c, d, dd Clause 1 Article 110 of this Decree;
b) The annual financial statements of the last 02 years preceding the merger year of the acquiring company and the acquired companies;
c) The pro forma financial statements of the last 02 years preceding the merger year of the acquiring company which is verified by an accredited audit organization.
4. In the cases specified in Point dd Clause 2 Article 112 of this Decree, the application for listing shall contain the documents specified in Clause 2 Article 110 of this Decree; the annual financial statement mentioned in Point a Clause 2 of Article 110 shall be replaced with:
a) In case the application for listing is submitted in the merger year: the financial statements of the last 02 years preceding the merger year of the acquiring company which is verified by an accredited audit organization.
b) In case the application for listing is submitted in the year succeeding the merger year: the financial statement of the year preceding the listing year of the applying organization, the financial statements of the year preceding the merger year of the acquiring company and the acquired companies which are verified by accredited audit organizations;
c) In case the application for listing is submitted in the second year succeeding the merger year: the annual financial statements of the last 02 years preceding the listing year of the applying organization which is audited by an accredited audit organization.
5. In the cases specified in Point e Clause 2 Article 112 of this Decree, the application for listing shall contain the documents specified in Clause 2 Article 110 of this Decree; the annual financial statement mentioned in Point a Clause 2 of Article 110 shall be replaced with:
a) In case the application for listing is submitted in the merger year: the financial statements of the last 02 years preceding the merger year of the acquiring company and the acquired companies, the pro forma financial statements of the last 02 years preceding the merger year which are verified by an accredited audit organizations;
b) In case the application for listing is submitted in the year succeeding the merger year: the financial statement of the year preceding the listing year of the applying organization, the financial statements of the year preceding the merger year of the acquiring company and the acquired companies; the pro forma financial statement of the year preceding the merger year of the applying organization which is verified by accredited audit organizations;
c) In case the application for listing is submitted in the second year succeeding the merger year: the annual financial statements of the last 02 years preceding the listing year of the applying organization which is audited by an accredited audit organization.
6. In the cases specified in Point g Clause 2 Article 112 of this Decree, the application for listing shall contain the documents specified in Clause 2 Article 110 of this Decree.
7. Procedures for continued listing in the cases specified in Clause 1 of this Article:
a) Within 30 days from the day on which the revised Certificate of Enterprise Registration is issued, the company shall submit the application for continued listing;
b) Within 07 working days from the receipt of the satisfactory application, the Stock Exchange shall issue a decision to approve the continued listing and the quantity additional shares, or issue a written rejection and provide explanation;
c) Within 05 working days from the day on which the Stock Exchange issues the decision to approve the continued listing and the quantity additional shares, the applying organization shall register a trading date for the new shares, which must be at least 06 working days after the day on which the Stock Exchange receives the application and must not later than 30 days from the day on which the decision on listing approval is issued, complete the procedures for put the new shares into trade. In case the new shares include shares that are restricted from trade, the applying organization shall also register a trading date of the shares restricted from trade which is a specific date after the expiration of the restriction period.
8. Procedures for continued listing in the cases specified in Clause 2 and Clause 3 of this Article:
a) Within 30 days from the day on which the revised Certificate of Enterprise Registration is issued, the company shall initiate the procedures for reconsideration of listing procedures;
b) Within 30 working days from the receipt of the satisfactory application, the Stock Exchange shall issue a decision to approve the continued listing and the quantity additional shares, or issue a written rejection and provide explanation;
c) The applying organization shall register an official trading date for the additionally listed securities in accordance with Point c Clause 7 of this Article.
9. Procedures for listing in the cases specified in Clauses 4, 5, 6 shall be carried out in accordance with Decree 111 of this Decree.
Article 115. Documentation and procedures for continued listing, listing of shares after full and partial division of enterprises
1. The application for listing a new enterprise that is established after division shall contain the documents specified in Article 110 of this Decree.
2. The application for continued listing in case of partial division of an enterprise specified in Point b Clause 3 Article 112 of this Decree shall contain:
a) The application form No. 30 in the Appendix hereof;
b) The report on equity of the divided company after the division date which is audited by an accredited audit organization; the financial statements of the last 02 years preceding the division year of the divided company;
c) The shareholder register of the divided company after the division date which is prepared within 01 month before the application is submitted; enclosed with the list of major shareholders, strategic shareholders, internal actors and their related persons (quantity, holding, transfer restriction time (if any));
d) The Certificate of Enterprise Registration, establishment and operation license or an equivalent document;
dd) The revised Certificate of Securities Registration issued by VSDCC.
3. The application for continued listing in case of partial division of an enterprise specified in Point c Clause 3 Article 112 of this Decree shall contain:
a) The documents specified in Clause 2 of this Article;
b) The pro forma financial statement of the year preceding the division year which is verified by an accredited audit organization;
4. In the cases specified in Point d Clause 3 Article 112 of this Decree, the application for listing shall contain the documents specified in Clause 2 Article 110 of this Decree; the annual financial statement mentioned in Point a Clause 2 of Article 110 shall be replaced with:
b) In case the application for listing is submitted in the division year: the financial statements of the last 02 years preceding the division year of the divided company audited by an accredited audit organization;
b) In case the application for listing is submitted in the year succeeding the division year: the annual financial statement of the year preceding the division year of the applying organization which is audited by an accredited audit organization, the annual financial statement of the year preceding the division year of the divided company which is audited by an accredited audit organization;
c) In case the application for listing is submitted in the second year succeeding the division year onward: the annual financial statements of the last 02 years preceding the listing year of the applying organization which is audited by an accredited audit organization.
5. In the cases specified in Point dd Clause 3 Article 112 of this Decree, the application for listing shall contain the documents specified in Clause 2 Article 110 of this Decree; the annual financial statement mentioned in Point a Clause 2 of Article 110 shall be replaced with:
a) In case the application for listing is submitted in the division year: the annual financial statements of the last 02 years preceding the listing year of the applying organization, the pro forma financial statements of the last 02 years preceding the division year which are audited by an accredited audit organization;
b) In case the application for listing is submitted in the year succeeding the division year: the annual financial statements of the year preceding the listing year, the annual financial statement of the year preceding the division year of the divided company; the pro forma financial statement of the year preceding the division year;
c) In case the application for listing is submitted in the second year succeeding the division year: the annual financial statements of the last 02 years preceding the listing year of the applying organization which is audited by an accredited audit organization.
6. In the cases specified in Point e Clause 3 Article 112 of this Decree, the application for listing shall contain the documents specified in Clause 2 Article 110 of this Decree.
7. Procedures for listing in the cases specified in Clauses 1, 4, 5, 6 shall be carried out in accordance with Decree 111 of this Decree.
8. Procedures for continued listing of a partially divided company in the cases specified in Clause 2 of this Article:
a) Within 30 days from the day on which the revised Certificate of Enterprise Registration is issued, the company shall submit the application for continued listing;
b) Within 07 working days from the receipt of the satisfactory application, the Stock Exchange shall issue a decision to approve the continued listing, or issue a written rejection and provide explanation.
9. Procedures for listing of a partially divided company in the cases specified in Clause 3 of this Article:
a) Within 30 days from the day on which the revised Certificate of Enterprise Registration is issued, the company shall submit the application for continued listing;
b) Within 30 working days from the receipt of the satisfactory application, the Stock Exchange shall issue a decision to approve the continued listing, or issue a written rejection and provide explanation.
Article 116. Documentation and procedures for continued listing, listing of shares of enterprises after other restructuring processes
1. The application for continued listing in the cases specified in Point a and Point c Clause 4 Article 112 of this Decree shall contain:
a) The application form No. 30 in the Appendix hereof;
b) The financial statements of the last 02 years preceding the restructuring year and the pro forma financial statements of the last 02 years preceding the restructuring year of the restructured organization;
c) The Certificate of Enterprise Registration, establishment and operation license or an equivalent document;
d) The revised Certificate of Securities Registration issued by VSDCC.
2. In the cases specified in Point b Clause 4 Article 112 of this Decree, the application for listing of shares shall contain the documents specified in Clause 2 Article 110 of this Decree; the annual financial statement mentioned in Point a Clause 2 of Article 110 shall be replaced with:
a) In case the application for listing is submitted in the restructuring year: the annual financial statements of the last 02 years audited by an accredited audit organization and the pro forma financial statement of the last 02 years preceding the listing year of the restructured organization;
b) In case the application for listing is submitted in the year succeeding the restructuring year: the annual financial statements of 02 years preceding the restructuring year audited by an accredited audit organization and the pro forma financial statement of the year preceding the restructuring year of the restructured organization;
c) In case the application for listing is submitted in the second year succeeding the restructuring year: The annual financial statements of 02 years preceding the restructuring year.
3. In the cases specified in Point c Clause 4 Article 112 of this Decree, the application for listing shall contain the documents specified in Clause 2 Article 110 of this Decree.
4. Procedures for continued listing in the cases specified in Clause 1 of this Article:
a) Within 30 days from the day on which the transaction is completed, the company shall submit the application for continued listing;
b) Within 07 working days from the receipt of the satisfactory application, the Stock Exchange shall issue a decision to approve the continuation of listing and the quantity additional shares (if any), or issue a written rejection and provide explanation;
c) The applying organization shall register an official trading date for the additionally listed securities (if any) in accordance with Point c Clause 7 Article 114 of this Decree.
5. Procedures for listing in the cases specified in Clause 2 and Clause 3 of this Article shall be carried out in accordance with Decree 111 of this Decree.
Article 117. Changing listing of shares/fund certificates when changing quantity of shares/fund certificates without merger, partial division or restructuring of enterprises
1. A listed organization that make changes to the quantity of its shares/fund certificates without undergoing merger, partial division or other restructuring processes shall register such changes.
2. An application for changes in listing shall contain:
a) The application form No. 31 in the Appendix hereof (if any) which must specify the reasons for changes and relevant documents;
b) The revised Certificate of Securities Registration issued by VSDCC, the revised certificate of securities investment fund registration, the revised establishment and operation license of the investment company;
c) The equity report audited by an accredited audit organization, except capital increases from equity.
3. Procedures for listing changes
a) Within 30 days from the day on which the revised Certificate of Enterprise Registration is issued or from the ending date of the offering/issuance or from the day on which the quantity of listed shares is changed, the listed organization shall submit the application for changes in listing;
b) Within 05 working days from the receipt of the satisfactory application, the Stock Exchange shall issue a decision to approve the changes;
c) In case the quantity of listed securities is increased, the listed organization shall register a trading date for the new securities in accordance with Point c Clause 7 Article 114 of this Decree.
Article 118. Listing of corporate bonds
1. Corporate bonds listed on the Stock Exchange shall be publicly offered bonds.
2. The application for listing of bonds shall include:
a) The application form No. 28 in the Appendix hereof;
b) The bond holder register of the applying organization which is prepared within 01 month before the application is submitted;
c) The commitment to fulfill the applying organization’s obligations to the investors including in terms of redemption, ratio of debt to equity, conditions for conversion (except convertible bonds) and other conditions;
d) The bond listing advisory contract with a securities company, unless the issuer is a securities company;
dd) The certificate issued by VSDCC that the bonds of the applying organization have been collectively registered.
3. Procedures for listing corporate bonds
a) Within 30 working days from the receipt of the satisfactory application, the Stock Exchange shall issue a decision to approve the listing;
b) Within 90 days from the day on which listing is approved, the applying organization shall put its bonds into trading.
Article 119. Listing bonds of enterprises after re-organization
1. Publicly offered bonds of a consolidating company or acquired company shall keep being listed at the Stock Exchange.
2. In case a listed organization is partially or fully divided, its bonds shall be delisted.
Article 120. Compulsory delisting
1. Shares of a public company shall be delisted in one of the following cases:
a) The listed organization is delisted according to SSC’s notification;
b) The listed organization suspends or is suspended from its main business operations for at least 01 year;
c) The listed organization has its Certificate of Enterprise Registration or operation license revoked;
d) The listed organization’s shares are not traded at the Stock Exchange for 12 months;
d) Shares are not put into trading within 90 days from the day on which listing is approved by the Stock Exchange;
e) The listed organization incurs losses in 03 consecutive years or total cumulative loss exceeds the charter capital contributed in reality or has a negative equity in the latest audited annual financial statement;
g) The listed organization ceases to exist due to re-organization, dissolution or bankruptcy;
h) The audit organization refuses to audit or has adverse opinions or refuses to offer opinions about the latest annual financial statement of the listed organization or has qualified opinions about the annual financial statements of 03 consecutive years;
i) The listed organization submits its annual financial statements behind schedules for 3 consecutive years;
k) SSC, the Stock Exchange discovers that the listed organization uses fraudulent documents in the application for listing;
l) The listed organization commits the violations specified in Clauses 1, 2, 3, 7 Article 12 of the Law on Securities;
m) The listed organization is suspended or banned from operating in its main business lines;
n) The conditions for listing after merger, partial division or restructuring are not fully satisfied; the organization does not apply for listing or continued listing on schedule after merger, partial division or restructuring;
o) The listed organization fails to fulfill its obligation to disclose information, fails to fulfill its financial obligations to the Stock Exchange and other cases in which compulsory delisting is deemed necessary by the Stock Exchange or SSC in order to protect interests of investors.
2. Shares of a company that is delisted but still qualified as a public company shall be registered for trading on UPCOM in accordance with Article 133 of this Decree.
3. Certificates of a closed-end fund, real estate investment fund, exchange traded fund (ETF) or shares of a public investment company shall be delisted in one of the following cases:
a) The closed-end fund, real estate investment fund, ETF or public investment company no longer has at least 100 investors excluding professional securities investors;
b) The tracking error in the last 03 months exceeds the maximum deviation established by the Stock Exchange; or the benchmark index cannot be determined due to force majeure events specified in the rules for benchmark index determination (for ETF);
c) The fund certificates or shares are not traded at the Stock Exchange for 12 months;
d) The fund certificates or shares are not put into trading within 90 days from the day on which listing is approved by the Stock Exchange;
dd) The fund or investment company is dissolved or ceases to exist due to consolidation or merger under a decision of the Investor Assembly of the fund or the GMS of the investment company;
e) SSC, the Stock Exchange discovers fraudulent documents in the application for listing;
g) The securities investment fund or public investment company fails to fulfill its obligation to disclose information and other cases in which compulsory delisting is deemed necessary by the Stock Exchange or SSC in order to protect interests of investors.
4. The shares or fund certificates of the public company, closed-end fund certificates, real estate investment fund, ETF or investment company that is subject to compulsory delisting may be traded for up to 30 days from the day on which the delisting decision is issued, except in the cases of delisting specified in Points c, d, dd, g, k, l, m Clause 1 and Points c, d, dd, e Clause 3 of this Article.
5. Bonds shall be delisted in one of the following cases:
a) The bonds have matured or are repurchased entirely by the issuer before their maturity date;
b) The listed organization ceases to exist dues to dissolution or bankruptcy;
c) In the cases specified in Points b, c, e, h, i, k, l, m Clause 1 of this Article and Clause 2 Article 119 of this Decree; the issuer fails to put the bonds into trading as prescribed in Clause 2 Article 111 of this Decree.
6. Secured warrants shall be delisted in one of the following cases:
a) Underlying securities are delisted or securities index cannot be determined;
b) The application for offering of secured warrants contains incorrect information, omits important information that may affect investment decisions and cause damage to investors; or the issuer fails to pay deposit or there is no payment guarantee of the bank;
c) The ratio of total quantity of underlying securities converted from the issued warrants of all issuers to the total quantity of transferable underlying securities exceeds the limit established by SSC;
d) The issuer fails to fulfill its obligations to risk management or the market maker’s obligations and have to stop operating as a market maker;
dd) The warrants have been fully executed or renewed;
e) The cases specified in Point c and Point g Clause 1 of this Article.
Repurchase of secured warrants, payment to their holders and relevant activities in case secured warrants are delisted shall comply with instructions of the Ministry of Finance.
Article 121. Voluntary delisting of securities
1. Conditions for voluntary delisting of shares and fund certificates:
a) The decision on delisting is approved by the GMS or Assembly of Investor in accordance with regulations of enterprise laws, the charter of the securities investment fund. It must receive over 50% of votes of shareholders that are not major shareholders;
b) The voluntary delisting may be only be carried out after at least 02 years from the issuance date of the decision to approve the listing on the Stock Exchange.
2. Conditions for voluntary delisting of secured warrants:
The issue may voluntarily delists part or all of the uncirculated warrants at least 30 days after the listing date as follows:
a) If there are still circulating warrants, the quantity of remaining warrants (to be delisted) must be at least 10% of the issued warrants;
b) In case the issuer has owned all of the issued warrants, it may request permission to delist all of the issued warrants.
3. An application for voluntary delisting shall contain:
a) The application form No. 32 in the Appendix hereof;
b) The decision of the GMS (for delisting of shares) or Investor Assembly (for delisting of fund certificates) or the Board of Directors (for delisting of secured warrants) to approve the delisting;
c) The plan for settlement of interests of shareholders after delisting is approved by the GMS.
4. Procedures for voluntary delisting
Within 07 working days from the receipt of the satisfactory application, the Stock Exchange shall issue a decision to approve the voluntary delisting, or issue a written rejection and provide explanation.
Article 122. Applying for relisting
1. The organization whose shares are delisted as prescribed in Article 120 or Article 121 of this Decree may only apply for relisting after trading for at least 02 years on UPCOM.
2. The conditions, documentation and procedures for relisting shall comply with Article 110 and Article 111 of this Decree.
Section 3. LISTING SECURITIES IN VIETNAM BY FOREIGN ISSUERS
Article 123. Conditions for a foreign issuer to list securities in Vietnam
1. The foreign issuer’s securities have been publicly offered in Vietnam in accordance with securities laws of Vietnam.
2. The quantity of listed securities is appropriate for the quantity of securities permitted to be offered in Vietnam.
3. The listing conditions specified in this Decree are satisfied.
4. The listing is consulted by 01 securities company that is established and operating in Vietnam.
5. Regulations of Vietnam on foreign exchange management are complied with.
Article 124. Documentation and procedures for a foreign issuer to list securities in Vietnam
1. An application for listing shall contain:
a) The application form No. 33 in the Appendix hereof;
b) The documents specified in Points b, c, d, dd, e, g, h Clause 1 Article 110 of this Decree for listing of shares; the documents specified in Points b, c, d, dd Clause 2 Article 118 of this Decree for listing of bonds.
2. Procedures for listing
a) Within 30 working days from the receipt of the satisfactory application, SSC shall decide whether to permit the foreign issuer to list securities on a Stock Exchange of Vietnam, or issue a written rejection and provide explanation.
b) After SSC permits the foreign issuer to list securities on a Stock Exchange of Vietnam, the issuer shall submit 01 copy of the application specified in Clause 1 of this Article (except the documents specified in Point a Clause 1 of this Article) to the Stock Exchange. Procedures for listing securities at the Stock Exchange shall comply with Article 111 of this Decree.
Securities of a foreign issuer in Vietnam will be delisted in any of the cases specified in Article 120 of this Decree or the foreign issuer’s project is suspended from its main operations for at least 01 year, or the Investment License is revoked.
Section 4. LISTING, TRADING SECURITIES OF VIETNAMESE ISSUERS AT FOREIGN STOCK EXCHANGES
Article 126. Conditions for listing, trading securities at foreign Stock Exchanges
1. Foreign parties are not banned from the business lines; foreign ownership ratios are conformable with law.
2. The overseas listing of securities is associated with overseas offering of securities.
3. 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).
4. 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.
5. Regulations of Vietnam on foreign exchange management are complied with.
6. The issuer that engages in conditional business operations shall obtain approval from relevant authorities.
Article 127. Applying for listing, trading securities at foreign Stock Exchanges
1. 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:
a) The application form No. 34 in the Appendix hereof;
b) Copies of the application for listing at the foreign Stock Exchange;
c) 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).
d) The written approval granted by a relevant authority for conditional business operations;
dd) Documents about foreign ownership ratio in the enterprise;
e) The issuer’s commitment to comply with regulations of Vietnam on foreign exchange management.
2. 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.
3. 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 this Article together with the application for overseas offering and issuance of securities in accordance with this Decree. In this case, SSC shall issue a written response by the deadline specified in Clause 2 of this Article.
Article 128. Obligations of enterprises whose securities are listed and traded at foreign Stock Exchanges
1. The enterprise whose securities are listed at a foreign Stock Exchange shall report to SSC and disclose information within 24 hours from the occurrence of the following events:
a) The application for listing and trading securities is officially submitted to the foreign Stock Exchange;
b) The decision of the foreign authority or foreign Stock Exchange to approve or disapprove of the listing of securities;
c) A decision on delisting of securities at the foreign Stock Exchange is issued.
2. Information shall be disclosed in accordance with regulations of law of the foreign country and Vietnam. In case of discrepancies between the laws of two countries about information disclosure, a report shall be submitted to SSC. Information disclosed to investors and holders of securities in the foreign market must be also disclosed in Vietnamese language in Vietnam on mass media and reported to SSC, the domestic Stock Exchange where the issuer is listed.
3. In case the organization is listed in both domestic market and foreign market, its financial statements shall be prepared in accordance with accounting standards of Vietnam and the foreign country and enclosed with descriptions of the differences between accounting standards of the two countries.
4. Ensure conformable foreign ownership ratio as prescribed by law.
5. Comply with regulations on foreign exchange management of Vietnam when conducting foreign currency transactions that are relevant to the listing and trading of securities at the foreign Stock Exchange.
Article 129. Delisting of securities from a foreign Stock Exchange for listing on a domestic Stock Exchange
1. The organization that delists its securities from the foreign Stock Exchange may apply for listing at a domestic Stock Exchange if listing conditions are satisfied.
2. The listed organization may delist or move part or all of the securities listed at the foreign Stock Exchange to the domestic Stock Exchange (in case these securities are also listed on the domestic Stock Exchange)
3. The listing of securities on the domestic Stock Exchange after delisting from the foreign Stock Exchange shall be applied for in accordance with regulations of law of Vietnam on securities and the securities market.
Article 130. Reporting listing and trading of DRs at foreign Stock Exchanges
The organization that issues underlying securities for issuance of DRs at the foreign Stock Exchange shall report to SSC before applying for listing of DRs at the foreign Stock Exchange. Reporting documents include:
1. A decision of the GMS to approve the issuance, listing and trading of DRs at the foreign Stock Exchange.
2. Documents about the offering or quantity of underlying securities in circulation.
3. The information disclosure sheet form No. 35 in the Appendix hereof.
4. Copies of the application for issuance, listing, trading of DRs at the foreign Stock Exchange.
Article 131. Responsibilities of issuers of underlying securities for issuance of DRs listed at foreign Stock Exchange
1. The issuer of new securities as underlying securities for issuance of DRs shall disclose information and fulfill other obligations specified in Article 128 of this Decree.
2. For DRs that are issued on the basis of circulating securities, the issuer of underlying securities shall fulfill the following obligations:
a) Within 24 hours from the official submission application for listing or official delisting of DRs at the foreign Stock Exchange, the issuer of underlying securities shall report to SSC and disclose information on mass media;
b) Comply with regulations of Clauses 2, 3, 4, 5 Article 128 of this Decree.
Article 132. Responsibilities of issuers of DRs listed at foreign Stock Exchange
The issuer of DRs shall notify the issuer of underlying securities of the listing of DRs at the foreign Stock Exchange under the scheme for overseas issuance of DRs.
Section 5. APPLYING FOR TRADING ON UPCOM
Article 133. Subjects and time limit
1. Subjects
a) Public companies that are not listed on Stock Exchanges;
b) Companies that are delisted involuntarily or voluntarily but are still qualified as public companies;
a) Equitized enterprises that have to apply as prescribed by regulations of law on equitization of state-owned enterprises, wholly state-owned single-member limited liability companies and public service providers.
2. Time limit
a) The public company shall complete registration of shares at VSDCC and apply for trading on UPCOM in accordance with Point d and Point dd Clause 1 Article 34 of the Law on Securities;
b) Within 07 working days from the effective date of the delisting decision, the Stock Exchange shall cooperate with VSDCC in registration of shares of the delisted company;
c) Time limit for equitized enterprises to apply shall comply with regulations of law on equitization of state-owned enterprises, wholly state-owned single-member limited liability companies and public service providers. Equitized enterprises that apply for trading on UPCOM shall disclose information in accordance with regulations of law and regulations of the Stock Exchanges.
Article 134. Application for trading on UPCOM
1. The application for trading on UPCOM of a public company specified in Point a Clause 1 Article 32 of the Law on Securities shall include:
a) The application form No. 36 in the Appendix hereof;
b) The documents specified in Points b, c, d, dd Clause 1 Article 33 of the Law on Securities;
c) VSDCC’s written confirmation of public company registration;
d) The certificate of securities registration issued by VSDCC and notification to be sent to VSDCC of the date of closing shareholder list.
2. The application for trading on UPCOM of a public company specified in Point b Clause 1 Article 32 of the Law on Securities shall include:
a) The documents specified in Points a, c, d Clause 1 of this Article;
b) The prospectus enclosed with the certificate of offering and report on result of public securities offering;
c) The documents specified in Points b, c Clause 1 Article 33 of the Law on Securities.
3. The application submitted by an equitized enterprise shall include:
a) If the equitization process has been completed, the application shall contain the documents specified in Clause 1 of this Article. In case the equitized enterprise fails to fulfill the conditions specified in Point a Clause 1 Article 32 of the Law on Securities, the application shall exclude SSC’s confirmation of public company registration;
b) If equitization is associated with registration, depositing, registration for trading, the application shall be prepared in accordance with regulations of law on equitization of state-owned enterprises, wholly state-owned single-member limited liability companies and public service providers.
Article 135. Procedures for applying for trading on UPCOM
1. Within 05 working days from the receipt of the satisfactory application (or the Certificate of Securities Registration in the case specified in Point a Clause 3 Article 134 of this Decree), the Stock Exchange shall issue a decision to approve the registration and disclose information on the market.
2. Within 10 days from the day on which the Stock Exchange issues the decision to approve the registration, the issuer shall put its shares into trading on UPCOM.
3. If equitization is associated with registration, depositing, registration for trading, the procedures shall be carried out in accordance with regulations of law on equitization of state-owned enterprises, wholly state-owned single-member limited liability companies and public service providers.
Article 136. Changing registration
1. Changes in quantity of shares shall be registered at the Stock Exchange.
2. Application for changing registration:
a) The application form No. 37 in the Appendix hereof;
b) The revised Certificate of Securities Registration issued by VSDCC (exchange capital decrease);
c) Documents relevant to the change in quantity of registered shares.
3. Procedures for changing registration:
a) The application for changing registration shall be submitted within 30 days from the day on which the revised Certificate of Enterprise Registration is issued or from the ending date of the offering/issuance or from the day on which the quantity of registered shares is changed;
b) Within 05 working days from the receipt of the satisfactory application, the Stock Exchange shall issue a decision to approve the changes and disclose information on the market, or issue a written rejection and provide explanation;
c) Within 05 working days from the day on which the Stock Exchange issues the decision to approve the changes, the registered organization shall register a trading date for the new shares, which must be at least 06 working days after the day on which the Stock Exchange receives the application and must not later than 30 days from the day on which the changes are approved), complete the procedures for put the new shares into trade. In case the new shares include shares that are restricted from trade, the registered organization shall also register a trading date of the shares restricted from trade which is a specific date after the expiration of the restriction period.
Article 137. Deregistration of securities
1. Securities shall be deregistered in the following cases:
a) The registered organization is delisted according to SSC’s notification;
b) The registered organization ceases to exist due to reorganization, dissolution or bankruptcy;
c) The Certificate of Enterprise Registration, establishment and operation license or an equivalent document of the registered organization is revoked;
d) The registered organization is listed at the Stock Exchange;
dd) The equitized enterprise is not qualified as a public company after 01 years from the first trading date as prescribed in Point a Clause 1 Article 32 of the Law on Securities and has not received a confirmation of public company registration from SSC;
e) Other cases in which deregistration is deem necessary by the Stock Exchange or SSC to protect the interests of investors;
2. The Stock Exchange shall issue the decision on deregistration and disclose information on the market.
Section 6. PARTICIPATION OF FOREIGN INVESTORS IN THE SECURITIES MARKET OF VIETNAM
Article 138. Securities investment by foreign investors
1. Foreign investors may make investment on the securities market of Vietnam in the following manners:
a) Direct investment and trading on the securities market of Vietnam under the securities and securities market laws;
b) Indirect investment by entrusting a securities investment fund management company or the branch in Vietnam of a foreign fund management company.
2. In case of direct investment mentioned in Point a Clause 1 of this Article, the foreign investor must apply for a securities trading code at VSDCC before making investment. In case of indirect investment mentioned in Point b Clause 1 of this Article, the securities investment fund management company or the branch in Vietnam of a foreign fund management company entrusted by the foreign investor shall apply for the securities trading codes in accordance with Point d and Point dd Clause 2 Article 145 of this Decree.
3. The foreign investor may open a securities trading account and make investment immediately after the securities trading code is issued in the form of an electronic confirmation.
4. The foreign investor may select a representative trader in Vietnam who:
a) is not serving an imprisonment sentence or banned by the court from business operation;
b) has securities-related qualifications, including: certificate of basic training in securities and securities market, certificate of training in securities and securities market laws; and
c) is the sole representative trader in Vietnam of the foreign investor and is authorized by the foreign investor in writing.
5. Foreign investors, their representative traders, securities companies, securities investment fund management companies, branches of foreign securities investment fund management companies that provide services for foreign investors shall comply with regulations of law on foreign ownership ratio when making investment on the securities market of Vietnam.
6. The Minister of Finance shall specify obligations of foreign investors, organizations providing services for foreign investors, other organizations and individuals relevant to foreign investment in the securities market of Vietnam.
Article 139. Foreign ownership ratio in the securities market of Vietnam
1. Maximum foreign ownership ratio in a public company:
a) If the business lines of the public company are regulated by a treaty to which Vietnam is a signatory, the treaty shall apply;
b) If the business lines of the public company is regulated by regulations of law which specify foreign ownership ratio, these regulations shall apply;
c) If the business lines of the public company are on the negative list of market access, regulations on foreign ownership ratio of each category shall apply. If foreign ownership ratio limits are not specified, the maximum foreign ownership ratio in the company shall be 50% of charter capital;
d) If the public company does not fall into any of the cases specified in Points a, b, c Clause 1 of this Article, there is no maximum limit for foreign ownership ratio;
d) In case the public company has multiple business lines that are subject to different foreign ownership ratio limits, the foreign ownership ratio must not exceed the lowest limit among them;
e) In case the public company imposes a foreign ownership ratio limit that is lower than that specified in Point a, b, ,c d, dd Clause 1 of this Article, it must be approved by the GMS and specified in its charter.
2. If the equitized enterprise is listed or registered on the securities market, its foreign ownership ratio shall comply with equitization laws. In case foreign ownership ratio is not provided for by equitization laws, regulations of Clause 1 of this Article shall apply.
3. Foreign investors may invest without limits into debt instruments of the Government, government-backed bonds, municipal bonds, corporate bonds, fund certificates, shares of investment companies, derivative securities, DRs and secured warrants, unless otherwise prescribed by relevant laws.
4. In case of issuance of shares, convertible bonds, warrant-linked bonds, ETF certificates, secured warrant, DRs, the issuer shall ensure that foreign ownership ratio is conformable with Clause 1 and Clause 2 of this Article after issuance, conversion of bonds into shares, upon the expiration of the time limit for purchase of shares, upon conversion of fund certificates into shares, execution of warrants, transfer of shares to the issuer of DRs.
5. In case the foreign ownership ratio in a public company exceeds the limit specified in Clause 1 of this Article, it must ensure that foreign ownership ratio in the company does not increase. Unless otherwise prescribed by relevant laws, shareholders of a public company that are foreign investors and business organizations in which foreign investors hold more than 50% of charter capital may only sell their shares until the foreign ownership ratio in the public company is conformable with Clause 1 of this Article, except receipt of dividends in shares or purchase of shares during the follow-on offering by existing shareholders.
Article 140. Non-voting DRs (NVDR)
1. NVDR is a security issued by a subsidiary company of the Stock Exchange to foreign investors based on shares of a listed or registered company.
2. NVDR holders have the same economic interests and obligations as those of the underlying ordinary shares, except the right to vote.
3. The issuer is entitled to attend the GMS and vote in case the issuer of underlying shares needs to enquire shareholders about delisting but does not have other economic rights that are relevant to these shares.
4. The Minister of Finance shall specify the types of underlying securities that are the basis for issuance of NVDRs, issuance limits, mechanism for conversion of underlying securities into NVDRs; exercising of the right to attend the GMS and vote of issuers, information disclosure, listing, trading, registration, depositing, clearing, payment and other NVDR-related issues.
Article 141. Responsibility to notify foreign ownership ratio in a public company
1. The public company shall determine its business lines and notify the foreign ownership ratio therein within 07 working days from the day on which the public company registration is confirmed by SSC.
2. The public company shall determine its business lines and maximum foreign ownership ratio therein in accordance with Clause 1 Article 139 of this Decree.
3. In case the public company has not notified the maximum foreign ownership ratio as prescribed in Article 142 of this Decree, it must be done before submission of the application for listing, registration, offering, issuance of securities, public offering of shares by shareholders of the public company.
4. The public company shall notify the change in foreign ownership ratio within 30 days from the occurrence of any of the following events:
a) There are changes to business lines that lead to changes to the maximum foreign ownership ratio in the company;
b) There are changes to regulations of law on foreign ownership ratio in the business lines of the company;
c) The maximum foreign ownership ratio in the public company specified in its Charter is changed.
Article 142. Documentation and procedures for notification of foreign ownership ratio in a public company
1. Documents for notification of maximum foreign ownership ratio in a public company mentioned in Clauses 1, 2, 3 Article 141 of this Decree include:
a) The notification form No. 38 in the Appendix hereof;
b) The Certificate of Enterprise Registration, establishment and operation license or an equivalent document; confirmation of changes to enterprise registration information, including information about the registered business lines;
c) In case of equitization, written approval for equitization issued by a competent authority which specifies foreign ownership ratio in the company (if any);
d) The company's charter and resolution of the GMS to approve the maximum foreign ownership ratio therein (in the cases specified in Point e Clause 1 Article 139 of this Decree).
2. Documents for notification of maximum foreign ownership ratio in a public company mentioned in Clause 4 Article 141 of this Decree include:
a) The notification form No. 39 in the Appendix hereof;
b) The documents specified in Points b, c, d Clause 1 of this Article;
3. Within 07 working days from the receipt of the satisfactory documents, SSC shall send a written notification of the receipt thereof and send it to VSDCC.
4. Within 02 working days from the receipt of the notification from SSC, VSDCC shall update the maximum foreign ownership ratio of the public company on its system.
Article 143. Obligations of foreign-invested business organizations when making investment and trading on the securities market
1. Business organizations that are public companies, public investment companies, close-end securities investment funds and other foreign-invested business organizations shall follow the same foreign ownership ratio conditions and procedures for making investment on the securities market as those applied to foreign investors if over 50% charter capital of the organization is held by foreign investors.
2. Public companies, public investment companies, close-end securities investment funds and other foreign-invested business organizations whose securities have been collectively registered at VSDCC shall determine whether they are the case specified in Clause 1 of this Article according to the list of securities holder on the last day of exercising rights of shareholders and investors who participate in the annual GMS or Annual Investor Assembly and follow the procedures below:
a) The public company, public investment company, close-end securities investment fund that satisfies the conditions specified in Clause 1 of this Article shall, through 01 depository member, apply for a trading code within 15 days from the receipt of the list of securities holders compiled by VSDCC, unless it already has an unexpired trading code;
b) The public company, public investment company, close-end securities investment fund that fails to satisfy the conditions specified in Clause 1 of this Article shall, through 01 depository member, cancel the trading code within 15 days from the receipt of the list of securities holders compiled by VSDCC;
c) In case the business organization no longer satisfies the conditions specified in Clause 1 of this Article and does not notify that the foreign ownership ratio has dropped below 50% of charter capital as prescribed in Clause 2 Article 142 of this Decree, its securities trading code shall be cancelled after SSC's notification is received as prescribed in Clause 3 Article 142 of this Decree.
3. The foreign-invested business organization whose securities have not been collectively registered as VSDCC shall register/deregister for securities trading code as follows:
a) When a business organization that already has a securities trading account or securities depository account becomes or is no longer a business organization specified in Clause 1 of this Article, it shall notify the depository member where the account is opened and, via 01 depository member, register a securities trading code or deregister the securities trading code within 03 working days from the day on which registration of shareholders or limited partners is completed;
b) In case a business organization specified in Clause 1 of this Article does not have a securities trading account or securities depository account, it shall register a securities trading code via a depository member before opening the trading account or securities depository account;
c) In case the business organization is a the depository member, it may directly send register/deregister securities trading code with VSDCC.
4. In case a business organization specified in Clause 1 of this Article has to apply the same conditions and procedures as those of foreign investors which cause the foreign ownership ratio in public companies exceed the limit specified in Article 139 of this Decree, the foreign investors and the business organizations specified in Clause 1 of this Article may only sell their shares until the foreign ownership ratio is conformable with Clause 1 Article 139 of this Decree.
5. Within 03 working days from the day on which the securities transaction code is issued or cancelled by VSDCC, the business organization specified in Clause 1 of this Article shall notify the depository members where its securities depository accounts or securities trading accounts are opened. The depository members and securities companies shall update depository accounts and securities trading accounts of business organizations accordingly.
6. Before a securities transaction code is cancelled by VSDCC, the organization shall keep applying the conditions and procedures applied to foreign investors on the securities market.
Article 144. Documentation and procedures for permitting a foreign organization to hold more than 49% of charter capital of a securities company or securities investment fund management company
1. A foreign organization that satisfies the conditions specified in Article 77 of the Law on Securities and is expected to hold more than 49% of charter capital of a securities company or a fund management company shall, via that same company, submit an application for permission to hold more than 49% of charter capital of the company to SSC. Such an application shall contain:
a) The application form No. 40 in the Appendix hereof;
b) The principle contract on transaction of shares/stakes among the parties (if any) enclosed with the foreign organization’s document authorizing the securities company or securities investment fund management company to complete procedures;
c) The Certificate of Enterprise Registration, establishment and operation license or an equivalent document;
d) The decision of the GMS, Board of Members or owner of the foreign organization on purchase to hold more than 49% of charter capital of the securities company or securities investment fund management company in Vietnam;
dd) The minutes of meeting and resolution of the GMS, Board of Members or decision of owner of the securities company or securities investment fund management company to permit the foreign organization to hold more than 49% of charter capital of the company (unless the foreign organization carries out tender offer as prescribed by law) and the company's charter (if revised);
e) The latest audited annual financial statement and latest quarterly financial statements of the foreign organization. If the foreign organization is a parent company, the latest audited consolidated financial statement shall be included. Information on the audited financial statements must show that the foreign organization satisfies the conditions specified in Clause 2 Article 77 of the Law on Securities.
2. Procedures for permitting a foreign investor to hold more than 49% of charter capital in a securities company or securities investment fund management company
a) Within 15 working days from the receipt of the satisfactory application as prescribed in Clause 1 of this Article, SSC shall decide whether to permit the foreign organization to conduct the transaction to hold more than 49% of charter capital of the securities company or securities investment fund management company, or issue a written rejection and provide explanation;
b) The parties shall complete the approved transaction within 06 months from the effective date of SSC’s decision mentioned in Point a of this Clause;
c) Within 05 days from the day on which the transaction is completed, the securities company or securities investment fund management company shall submit a report to SSC.
3. In case the securities company or securities investment fund management company carries out private placement or public securities offering that results in an investor holding more than 49% of its charter capital, it shall provide relevant documents specified in Clause 1 of this Article and comply with regulations of law on securities offering.
4. In case a foreign organization plans to make a purchase to hold more than 49% of charter capital of a securities company or a fund management company that is a public company, the foreign organization shall comply with regulations of this Article and regulations of law on tender offer.
Article 145. Rules for issuance of securities trading codes
1. The application for and receipt of securities trading codes shall be carried out via depository members.
2. Each foreign investor, overseas issuer of DRs, foreign-invested business organization specified in Clause 1 Article 143 of this Decree shall be issued with 01 securities trading code, except the following cases:
a) A foreign securities company shall be issued with 02 securities trading codes: 01 securities trading code for the proprietary trading account and 01 securities trading code for the securities brokerage account;
b) A foreign investment fund, a foreign organization under management of multiple foreign fund management companies shall be issued with multiple securities trading codes. Each investment portfolio managed by a foreign fund management company shall be granted 01 securities trading code; each investment portfolio managed by the fund or foreign organization itself shall have 01 separate securities trading code;
c) An investment organization that belongs to a foreign government or an international investment/finance organization to which Vietnam is a member will be issued with multiple securities trading codes; each investment portfolio deposited at a depository bank will be issued with 01 securities trading code;
d) A securities investment fund management company will be issued with 01 securities trading code to in accordance with Clause 1 Article 143 of this Decree. A securities investment fund management company that becomes a foreign-invested business organization as prescribed in Clause 1 Article 143 of this Decree will be issued with an additional securities trading code to serve investment operations of the fund management company itself;
dd) The branch of a foreign investment fund in Vietnam will be issued with 02 securities trading codes, 01 of which will be issued to the branch, the other for management of investment portfolios of foreign investors.
Article 146. Applying for securities trading codes
1. An application for securities transaction code to be submitted by a foreign investor, overseas issuer of DRs, foreign-invested business organization specified in Clause 1 Article 143 of this Decree shall contain:
a) The application form No. 41 in the Appendix hereof;
b) A document authorizing the depository member to apply for the securities trading code, unless the applying organization is a depository member;
c) The list of documents for identifying investors according to form No. 42 in the Appendix hereof.
2. An application for securities transaction code to be submitted by a securities investment fund management company or Vietnamese branch of a foreign securities investment fund management company specified in Clause 2 Article 138 of this Decree shall contain:
a) The documents specified in Point a and Point b Clause 1 of this Article;
b) A depository contract between the applying organization and the depository bank;
c) The establishment and operation license of the applying organization.
3. Procedures for applying for securities trading codes:
a) The applicant shall submit the application in accordance with Clause 1 or Clause 2 of this Article to the depository member;
b) The depository member shall complete form No. 41 in the Appendix hereof on the securities transaction code registration system of VSDCC;
c) Within 01 working day from the receipt of information from the depository member, VSDCC shall issue the securities trading code to the applicant and send an electronic confirmation on the online securities trading code registration system. In case the application is rejected, VSDCC shall make a response on the system and provide explanation;
d) Within 05 working days from the day on which the electronic confirmation is issued, the depository member shall submit the application specified in Clause 1 or Clause 2 of this Article to VSDCC;
dd) Within 05 working days from the receipt of the satisfactory application, VSDCC shall issue the certificate of securities trading code registration to the applicant;
e) Within 03 working days from the receipt of the certificate, the depository member shall notify the applicant and send the certificate to the applicant if requested by the applicant.
4. In case any of the documents specified in Clause 1 and Clause 2 of this Article is written in a foreign language, it must be notarized or authenticated in accordance with Vietnam’s law or the foreign country’s law within 12 months before it is received by the depository member. Documents written in foreign languages shall be translated into Vietnamese, except documents written in English or English translations. Vietnamese translations must be made by the depository member or a lawful translation organization in Vietnam.
5. The applicant shall be legally responsible for the accuracy and truthfulness of the application. The depository member shall examine the adequacy and validity of the application, provide adequate and accurate information provided by the applicant on the online securities trading code registration system of VSDCC. VSDCC shall retain applications for securities trading codes and provide them for SSC when requested in writing.
6. A foreign investor or overseas issuer of DRs will not be issued with the securities trading code if:
a) The applicant is under investigation or incurred penalties for violations against regulations of law on securities, money laundering, unspent convictions for finance-, banking-, foreign exchange-, tax-related offences or the decision on penalties for administrative violation is unexpired;
b) The securities trading code has been revoked according to Point a Clause 2 Article 147 of this Decree.
Article 147. Suspension, revocation of securities trading codes
1. A foreign investor or overseas issuer of DRs will have their securities trading code suspended for up to 06 months in the following cases:
a) The application for the securities transaction code is found to contain incorrect information or omits mandatory information;
b) Documents provided are not provided in a truthful, accurate and timely manner as requested by VSDCC and SSC;
c) The suspension is requested by a competent authority when the foreign investor or overseas issuer of DRs commits violations of law.
2. A securities trading code will be revoked by VSDCC in the following cases:
a) VSDCC receives a decision on imposition of penalties issued by a competent authority for commission of violations specified in Article 12 of the Law on Securities by a foreign investor or overseas issuer of DRs;
b) The foreign investor or overseas issuer of DRs fails to rectify the causes of suspension of the securities trading code within the suspension period specified in Clause 1 of this Article;
c) The revocation is requested by the holder of the securities trading code. In this case, the code holder shall submit form No. 43 in the Appendix hereof to VSDCC via the depository member.
Article 148. Changes in information related to securities trading codes that have to be reported to VSDCC
1. The securities trading code holder shall report the following changes to VSDCC:
a) Change of the depository member;
b) Change of name, country/territory where the code holder operates, headquarters address, business registration number if the code holder is an organization;
c) Change of name, nationality, mailing address, passport number or ID number if the code holder is an individual.
2. Documents reporting the changes include:
a) The report form No. 44 in the Appendix hereof;
b) The business registration certificate or establishment and operation license that has the changes or other documents about the changes according to form No. 42 in the Appendix hereof in case of changes specified in Point b Clause 1 of this Article;
c) The new passport or ID card in case of changes specified in Point c Clause 1 of this Article.
3. Reporting procedures:
a) In case of changes specified in Point a Clause 1 of this Article, the code holder shall report before making the change. In case of changes specified in Point b or Point c Clause 1 of this Article, the code holder shall report within 30 days after making the change;
b) The code holder shall submit the documents specified in Clause 2 of this Article to the depository member;
c) The depository member shall complete form No. 44 in the Appendix hereof on the securities transaction code registration system of VSDCC;
d) Within 01 working day from the receipt of information from the depository member, VSDCC shall issue adjust information in the form of an electronic confirmation. If the change is rejected VSDCC shall make a response on the system and provide explanation;
dd) Within 05 working days from the day on which the electronic confirmation of VSDCC is received, the depository member shall submit the documents specified in Clause 2 of this Article to VSDCC;
e) Within 05 working days from the receipt of adequate documents as prescribed in Clause 2 of this Article, VSDCC shall issue a confirmation of changes to the certificate of securities trading code registration and send it to the depository member;
g) Within 03 working days from the receipt of the written confirmation from VSDCC as prescribed in Point e of this Clause, the depository member shall notify the securities trading code holder and send it to the code holder if requested.
4. Securities trading code holders shall be legally responsible for the accuracy and truthfulness of the documents about changes in information. The depository member shall examine the adequacy and validity of the application, provide adequate and accurate information provided by the applicant on the online securities trading code registration system of VSDCC. VSDCC shall retain applications for securities trading codes and provide them for SSC when requested in writing.
SECURITIES REGISTRATION, CLEARING AND SETTLEMENT, MEMBERS OF VSDCC, ORGANIZATIONS DIRECTLY OPENNING ACCOUNTS, CLEARING BANKS
Section 1. SECURITIES REGISTRATION, CLEARING AND SETTLEMENT
Article 149. Securities registration at VSDCC
1. The following securities shall be registered at VSDCC:
a) Shares that are listed or registered on the securities trading system;
b) Fund certificates, secured warrants, debt instruments of the Government, government-backed bonds, municipal bonds and corporate bonds that are listed on the securities trading system;
c) Securities of public companies and securities that have to be registered at VSDCC as prescribed by law.
2. Other securities that are registered at VSDCC under agreements between VSDCC and their issuers.
3. The securities specified in Clause 1 and Clause 2 of this Article shall be registered at VSDCC in the form of electronic data or book entries.
4. A public company shall register its shares at VSDCC within 15 days from the day on which SSC confirms the completion of public company registration.
5. The Minister of Finance shall provide guidelines for registration and deregistration of securities, issuance of ticker symbols, exercising of rights of securities holders, transfer of securities ownership and other activities related to securities registration at VSDCC.
Article 150. Organization of central counterparty clearing
1. Central counterparty clearing shall apply to clearing and settlement of securities that are listed or registered on the securities trading system, except clearing and settlement of debt instruments.
2. VSDCC shall carry out novation, clearing, determination of liabilities of clearing members according to valid transaction results provided by Stock Exchanges.
3. Settlement of securities at VSDCC and payment of money at clearing banks shall be carried out on the basis of liability and amount payable determined by VSDCC.
4. VSDCC is responsible for ensuring securities settlement by clearing members via depositing and risk prevention measures as prescribed by law.
5. The Minister of Finance shall provide guidelines for securities clearing and settlement under central counterparty clearing.
Article 151. Conditions for provision of securities clearing and settlement services
1. The service provider must be a securities company, commercial bank or FBB that is granted the certificate of securities depository registration by SSC. The commercial bank or FBB shall also satisfy conditions for provision of securities clearing and settlement services under credit institution laws.
2. Charter capital and equity requirements:
a) A direct clearing member shall have charter capital or equity of at least 1000 billion VND (for commercial banks and FBBs) or at least 250 billion VND (for securities companies);
b) A general clearing member shall have charter capital or equity of at least 7000 billion VND (for commercial banks and FBBs) or at least 900 billion VND (for securities companies);
3. liquidity ratio requirements:
a) For securities companies: fully make provisions as per regulations, ratio of debt to equity according to the latest annual financial statement must not exceed 05 and liquidity ratio must be at least 260% in 12 consecutive months before the month in which the application for the certificate of eligibility to provide securities clearing and settlement services is submitted;
b) For banks and FBBs: satisfy the capital adequacy ratio requirements according to credit institution laws in the last 12 months before the month in which the application for the certificate of eligibility to provide securities clearing and settlement services is submitted.
4. The provision of securities clearing and settlement services must be approved by the GMS or Board of Members or the company’s owner.
5. The service provider is not undergoing re-organization, dissolution, bankruptcy, put under control, special control, suspension or termination under decision of a competent authority.
Article 152. Documentation and procedures for issuance of the certificate of eligibility to provide securities clearing and settlement services
1. An application for the certificate of eligibility to provide securities clearing and settlement services shall contain:
a) The application form No. 45 in the Appendix hereof;
b) A decision of the GMS, Board of Members or the company’s owner to provide securities clearing and settlement services;
c) The latest audited annual financial statement and examined half-year financial statement; the report on liquidity ratio of the last 12 months (for securities companies) or written commitment to maintain a minimum capital adequacy ratio under credit institution laws in the last 12 months (for commercial banks and FBBs);
d) A written approval issued by SBV for provision of securities clearing and settlement services by the commercial bank or FBB under credit institution laws.
2. Within 15 working days from the receipt of the satisfactory application, SSC shall issue the certificate of eligibility to provide securities clearing and settlement services. In case the application is rejected, SSC shall issue a written rejection and provide explanation.
Article 153. Suspension, termination of provision of securities clearing and settlement services
1. SSC shall suspend the provision of securities clearing and settlement services for up to 12 months in the following cases:
a) The application for the certificate of eligibility to provide securities clearing and settlement services contains fraudulent documents or false information;
b) The certificate holder operates against the certificate;
c) The conditions specified in Clause 5 Article 151 of this Decree are not satisfied; the conditions specified in Clause 2 and Clause 3 Article 151 of this Decree are not satisfied for 06 consecutive months;
d) The cases in which provision of securities clearing and settlement services is suspended to protect investors’ interests.
2. SSC shall terminate the provision of securities clearing and settlement services for up to 12 months in the following cases:
a) The establishment and operation license, certificate of registration of securities depository is revoked, or SBV issues a notification that the commercial bank or FBB fails to satisfy conditions for provision of securities clearing and settlement services prescribed by credit institution laws;
b) The service provider does not apply for clearing member registration within 12 months from the day on which SSC issues the certificate of eligibility to provide securities clearing and settlement services;
c) The causes of suspension are not eliminated within the suspension period;
d) The termination is voluntary.
Article 154. Procedures for termination of provision of securities clearing and settlement services
1. In the cases specified in Point a Clause 2 Article 153 of this Decree, SSC shall issue a decision to revoke the certificate of eligibility to provide securities clearing and settlement services at the same time of issuance of the decision to revoke the establishment and operation license or certificate of securities depository registration. If the service provider is a commercial bank or FBB, SSC shall issue the decision to revoke the certificate of eligibility to provide securities clearing and settlement services immediately after receiving the notification from SBV that the commercial bank or FBB fails to satisfy conditions for provision of securities clearing and settlement services prescribed by credit institution laws.
2. In the cases specified in Point b Clause 2 Article 153 of this Article, SSC shall issue the decision to revoke the certificate of eligibility to provide securities clearing and settlement services within 03 working days from the expiration of the period specified in Point b Clause 2 Article 153 of this Decree.
3. In the cases specified in Point c Clause 2 Article 153 of this Decree:
a) Within 30 days from the occurrence of the event, SSC shall issue a document requesting the securities company, commercial bank or FBB to terminate the provision of securities clearing and settlement services;
b) After SSC issues the document mentioned in Point a of this Clause, the securities company, commercial bank or FBB shall disclose information about termination of provision of securities clearing and settlement services within 24 hours and complete procedures for termination of provision of securities clearing and settlement services in accordance with Clause 2 Article 163 of this Decree;
c) Within 05 working days from the day on which the procedures for termination of provision of securities clearing and settlement services are completed, the securities company, commercial bank or FBB shall submit a report to SSC together with the decision to revoke the certificate of clearing membership of VSDCC;
d) Within 07 working days from the receipt of the report, SSC shall issue the decision to revoke the certificate of eligibility to provide securities clearing and settlement services.
4. Within 24 hours from the receipt of the decision to revoke the certificate of eligibility to provide securities clearing and settlement services, the securities company, commercial bank or FBB shall disclose information about the decision.
Article 155. Documentation and procedures for voluntary termination of provision of securities clearing and settlement services
1. Documentation for voluntary termination of provision of securities clearing and settlement services includes:
a) Form No. 46 in the Appendix hereof;
b) The decision of the GMS, Board of Members or the company’s owner to termination provision of securities clearing and settlement services;
c) The decision to revoke the certificate of clearing membership issued by VSDCC;
d) The report on results of termination of provision of securities clearing and settlement services.
2. Within 07 working days from the day on which satisfactory documents are received, SSC shall issue the decision to revoke the certificate of eligibility to provide securities clearing and settlement services.
Article 156. Provision of securities clearing and settlement services by VSDCC
1. Regarding securities clearing and settlement services
a) Organize securities clearing and settlement in the form of central counterparty clearing;
b) Establish and operate a system for risk management; develop a assuring mechanism for securities clearing and settlement;
c) Manage accounts and clearing margin to ensure securities settlement; request clearing members to pay deposits, determine and adjust deposit levels and categories of deposited assets;
d) Establish a system to separately manage accounts and assets of VSDCC and those of clearing members; separate accounts and assets of clearing members from those of their clients; separate accounts and clearing margin from the derivatives market; provide account and clearing margin management services for clearing members and clients;
dd) Reject novation of sale of securities if ownership is not lawful, transactions of clearing members and non-clearing members, securities settlement through clearing members after requesting the Stock Exchange to suspend transactions of these members and other invalid transactions according to regulations of the Ministry of Finance;
e) Request the Stock Exchange to suspend transactions of exchange members that are insolvent clearing members and non-clearing members that authorize these clearing members to perform securities clearing and settlement;
g) Take responsibility for fulfillment of obligations and commitments to clearing members; do not take responsibility to third parties in securities clearing; act as creditors of amounts receivable from clearing members that are dissolved or bankrupt; be given priority when distributing assets in accordance with regulations of law on dissolution and bankruptcy;
h) Use, sell, transfer existing securities, securities pending settlement from previous purchases on proprietary trading accounts, market making accounts of insolvent clearing members, securities pending settlement from unpaid purchases on accounts of insolvent investors to reimburse the used funds and cover relevant costs;
i) In case existing securities or securities pending settlement cannot be sold, used or transfer as prescribed in Point h of this Clause or the revenue from sale, use, transfer of these securities is not sufficient to reimburse the used funds and cover relevant costs, VSDCC shall use the revenue from sale of other securities and exercising of rights of securities holders of the insolvent clearing member to reimburse the used funds and cover relevant costs;
k) Appoint other clearing members to carry out counterpart transactions for transactions insolvent clearing members;
l) Appoint substitute clearing members that have the responsibility to fulfill obligations of insolvent clearing members; handover unsettled securities transactions and relevant assets to the substitute clearing members;
m) Use, sell, transfer clearing margin of clearing members and investors that are insolvent; assets contributed to the clearing fund of clearing members and lawful sources of funding of VSDCC to fulfill obligations of insolvent clearing members and cover financial losses of VSDCC that are caused by insolvent securities transactions in accordance with regulations of law on and regulations of VSDCC;
n) Establish a system of securities settlement accounts that is separated from the system of clearing margin accounts;
o) Develop a technical system serving securities settlement and connected with systems of clearing banks to ensure completion of securities settlement as prescribed in Clause 2 Article 63 of the Law on Securities;
p) Exercise other rights and obligations relevant to securities clearing and settlement prescribed by law.
2. Management of clearing members and clearing fund
a) Grant, revoke membership of clearing members, suspend clearing members from securities clearing and settlement;
b) Supervise clearing members maintaining operating conditions as prescribed by law and regulations on securities clearing and settlement;
c) Request clearing members to provide explanation, documents and information in case suspicious behaviors in securities clearing and settlement are found or there are signs of insolvency of an investor or clearing member;
d) Manage the clearing fund; request clearing members to contribute to the clearing fund.
3. Contribute 5% of annual revenue from registration, depository, clearing and settlement to a operational risk management fund to deal with risks during operations of VSDCC. These amounts shall be included in costs of VSDCC when determining taxable income. Cumulative contributions to the operational risk management fund must not exceed 30% of the charter capital of VSDCC. The Minister of Finance shall specify the contribution, management and use of the operational risk management fund.
4. Report violations committed by clearing members to SSC; propose remedial measures; submit other reports as prescribed by law or requested by SSC, or when violations, suspicious behaviors are discovered in securities clearing and settlement.
Article 157. Rights and obligations of clearing members to provision of securities clearing and settlement services
1. A clearing member has the rights to:
a) Request investors to fully and punctually pay deposits before carrying out transactions; determine methods for depositing, changing clearing margin, transferring clearing margin as prescribed by law;
b) Request the investor that becomes insolvent or the clearing member to carry out the mandatory counterpart transactions; use, sell, transfer clearing margin of the investor to buy securities or put them up as collateral for loans to fulfill liabilities to transactions of the investor;
c) Use, sell, transfer clearing margin of investors to fulfill their liabilities to VSDCC;
d) Use, sell, transfer clearing margin of investors that are paid to the insolvent clearing member in case a clearing member fulfills to fulfill an insolvent clearing member’s liabilities on behalf of the latter as requested by VSDCC;
2. A clearing member has the obligations to:
a) Fulfill obligations of clients to VSDCC as their authorized representative;
b) Conclude contracts for securities clearing and settlement with VSDCC; conclude contracts for securities clearing and settlement with non-clearing members; conclude contracts for transactions, securities clearing and settlement with depository banks other than clearing members. These contracts shall specify that the clearing member is the authorized representative of the clients and shall fulfill the clients’ obligations to VSDCC;
c) Operate under regulations of VSDCC in order to ensure solvency and pay compensation for financial losses (if any);
d) Establish and operate the system for separate management of assets and transactions of each investor, between investors and the clearing member; and clearing margin and accounts of derivatives market;
dd) Ensure that investors have adequate clearing margin before carrying out transactions, adequate money and securities to settle securities; return excess clearing margin as requested by investors; monitor transactions and clearing margin of investors to ensure conformity with law;
e) Pay compensation to investors for failure to fulfill obligations that causes damage to lawful interests of investors;
g) Transfer clearing margin to the substitute clearing member appointed by VSDCC as prescribed in Point 1 Clause 1 Article 156 of this Decree;
h) Retain original documents about securities clearing and settlement; provide information about transactions of investors, clearing margin and accounts of investors, securities clearing, settlement authorization contracts and other documents relevant to securities clearing and settlement as requested by VSDCC;
i) Do not conclude new contracts or renew existing contracts for securities clearing and settlement during suspension period; finalize and transfer accounts at the requests of clients (if any);
k) Fulfill financial obligations punctually as prescribed by law;
l) Disclose information and report as per regulations; provide information periodically or at the request of investors about activities of accounts, account balance; prepare account statements.
Section 2. MEMBERS OF VSDCC, DIRECT ACCOUNT OPENERS
Article 158. Conditions, application, procedures for registration of depository membership at VSDCC
1. Conditions for becoming a depository member
a) The applicant is granted the certificate of securities depository registration by SSC;
b) The applicant has qualified information technology infrastructure and professional processes for securities depository according to regulations of VSDCC.
2. Application for depository membership
a) The application form No. 47 in the Appendix hereof;
b) The certificate of securities depository registration by SSC;
c) The description of information technology infrastructure and professional processes.
3. Procedures for issuance of the depository membership certificate
a) Within 05 working days from the receipt of the satisfactory application, VSDCC shall send a written notification to the securities company, commercial bank or FBB requesting connection to the online portal and test depository activities with VSDCC.
b) In case the application is not satisfactory, within 05 days from the receipt of the application, VSDCC shall send a written request for supplementation of the application;
c) VSDCC shall issue the depository membership certificate within 03 working days from the day on which the securities company, commercial bank or FBB completes the connection to the online portal and successfully tests depository activities with VSDCC.
Article 159. Conditions, application, procedures for registration of clearing membership
1. Conditions for becoming a clearing member
a) The applicant is granted the certificate of eligibility to provide securities clearing and settlement services by SSC;
b) The applicant is a depository member of VSDCC;
c) The applicant has qualified information technology infrastructure, professional processes and personnel for securities clearing and settlement according to regulations of VSDCC.
2. Application for clearing membership
a) The application form No. 48 in the Appendix hereof;
b) The certificate of eligibility to provide securities clearing and settlement services by SSC;
c) The description of information technology infrastructure, professional processes and personnel.
3. Procedures for issuance of the clearing membership certificate
a) Within 05 working days from the receipt of the satisfactory application, SSC shall send a written notification of contract conclusion, obligation to contribute of the clearing member and connection to the securities clearing and settlement system. In case the application is rejected, VSDCC shall issue a written rejection and provide explanation;
c) The securities company, commercial bank or FBB shall report the completion of the tasks mentioned in Point a of this Clause to VSDCC and send the application form for opening of an account to receive deposits and payments according to form No. 49 in the Appendix hereof;
c) Within 01 working day from the receipt of the documents specified in Point b of this Clause, VSDCC shall issue the certificate of clearing membership to the securities company, commercial bank or FBB.
Article 160. Documentation and procedures for registration of depository membership and clearing membership after consolidation or merger
1. In case at least 01 of the consolidating securities companies or commercial banks (hereinafter referred to as “consolidating parties”) is a depository member or clearing member before the consolidation or the acquiring securities company or commercial bank (hereinafter referred to as “acquiring party”) is not a depository member or clearing member but at least 01 of the acquired securities companies or commercial banks (hereinafter referred to as “acquired party”) is a depository member or clearing member before the merger, the following conditions shall be satisfied:
a) The existing information technology infrastructure is used for securities depositary of the securities company or commercial bank that is a depository member before the consolidation or merger (in case of applying for depository membership); The existing information technology infrastructure is used for securities depositary, clearing, settlement of the securities company or commercial bank that is a clearing member before the consolidation or merger (in case of applying for clearing membership);
b) The applicant for clearing membership satisfies the personnel and professional requirements of VSDCC.
2. In case the acquiring party is a depository member or clearing member before the merger, it may retain the depository membership or clearing membership after the merger is completed. Within 03 working days from the issuance of the revised establishment and operation license, the acquiring party shall send a written notification of the changes to VSDCC.
3. In case the consolidated securities company or commercial bank (hereinafter referred to as “consolidated party”), or the acquiring party does not fall into any of the cases specified in Clause 1 and Clause 2 of this Article, the conditions for becoming a depository member specified in Article 158 of this Decree and the conditions for becoming a clearing member specified in Clause 1 Article 159 of this Decree shall apply.
4. The application for depository membership or clearing membership in the cases specified in Clause 1 of this Article shall contain:
a) The application form No. 47 (for depository membership) or form No. 48 (for clearing membership) in the Appendix hereof;
b) The decision of SSC on consolidation or merger of the securities companies; the decision of SBV on consolidation or merger of the commercial banks;
c) The decision of the GMS, the Board of Members or the owners of the securities companies and commercial banks participating in the consolidation or merger to approve the consolidation or merger;
d) The commitment of the Board of Directors, the Board of Members or the owners of the companies or commercial banks that the consolidated or acquiring party will keep using the existing information technology infrastructure and professional processes for securities depository (in case of applying for depository membership) or securities depository, clearing, settlement (in case of applying for clearing membership). If there are changes in personnel (in case of applying for clearing membership) and professional processes, the securities company or commercial bank shall provide relevant documents and specify the changes.
5. Procedures for registration of depository membership or clearing membership in the cases specified in Clause 1 of this Article:
a) For depository membership: within 01 working day from the receipt of the satisfactory application as prescribed in Clause 4 of this Article and the securities depository registration certificate issued by SSC from the consolidated/acquiring securities company or commercial bank, VSDCC shall issue the certificate of depository membership to the consolidated/acquiring securities company or commercial bank;
b) For clearing membership: within 01 working day from the receipt of the satisfactory application as prescribed in Clause 4 of this Article and the certificate of eligibility to provide securities clearing and settlement services issued by SSC from the consolidated/acquiring securities company or commercial bank, VSDCC shall issue the certificate of depository membership to the consolidated/acquiring securities company or commercial bank.
6. Documentation and procedures grant of depository membership and clearing membership in the cases specified in Clause 3 of this Article shall comply with Clause 2 and Clause 3 Article 158, Clause 2 and Clause 3 Article 159 of this Decree.
Article 161. Changes of information about depository members and clearing members
1. In case of changes in personnel , the member shall send a written notification to VSDCC within 05 working days from the day on which the change occurs.
2. In case of changes to the name, headquarters address, legal representative, charter capital:
a) The member shall send a written notification to VSDCC within 05 working days from the day on which the change occurs;
b) Within 05 working days from the receipt of the notification, VSDCC shall issue the revised certificate of depository/clearing membership.
3. In case of conversion from direct clearing member to general clearing member or vice versa, VSDCC shall issue the revised certificate of clearing membership within 03 working days from the day on which the clearing member completes the following task:
a) Send VSDCC the written request for conversion of clearing membership according to form No. 50 in the Appendix hereof;
b) Pay additional clearing fund (if required) when converting from direct clearing member to general clearing member;
c) Fulfill obligations to securities settlement, return clearing margin on accounts of non-clearing members and clients authorized by non-clearing members (if any) when converting from general clearing member to direct clearing member.
Article 162. Revocation of the depository membership certificate
1. VSDCC shall revoke the depository membership certificate in the following cases:
a) The certificate of securities depository registration is revoked according to Clause 2 Article 60 of the Law on Securities;
b) Regulations on depository members of VSDCC are seriously violated;
c) The depository member voluntarily resigns the depository membership and submits a written request for revocation of depository membership to VSDCC.
2. Procedures for revocation of the depository membership certificate
a) Within 01 working day from the receipt of the decision on revocation of the certificate of securities depository registration from VSDCC, the written request for revocation depository membership from the depository member or commission of the violations that lead to revocation of the depository membership certificate, VSDCC shall stop providing services including opening depository accounts, securities depository, transfer of deposited securities for the depository member, except wire transfer to finalize accounts of clients, wire transfer to release securities used as collateral, exercising of rights of securities holders and change of investors’ information;
b) Wire transfer for finalization of clients’ accounts shall be carried out at the request of the clients or under agreements or contracts for account transfer between the depository member whose depository membership certificate is revoke and other depository members in case there are no requests from the clients. The time limit for transfer shall comply with regulations of VSDCC.
c) VSDCC shall issue the decision to revoke the depository membership certificate within 03 working days from the deadline for wire transfer mentioned in Point b of this Clause or after the depository member reports the completion of wire transfer and fulfillment of financial obligations and other obligations to VSDCC.
Article 163. Revocation of the clearing membership certificate
1. VSDCC shall revoke the depository membership certificate in the following cases:
a) The clearing member fails to rectify the violations by expiration of the suspension period as requested by VSDCC;
b) The certificate of securities depository registration is revoked by SSC;
c) The depository membership certificate is revoked by VSDCC;
d) Regulations on clearing members of VSDCC are seriously violated;
dd) The clearing member voluntarily ends the depository membership and submits a written request for revocation of clearing membership to VSDCC.
2. Procedures for revocation of the clearing membership certificate
a) Within 01 working day from the expiration of the suspension period or occurrence of an event mentioned in Clause 1 of this Article, VSDCC shall send a document to the Stock Exchange and the clearing member notifying the suspension of provision of securities clearing and settlement services for the clearing member, financial obligations and other obligations of the clearing member to VSDCC.
VSDCC and the clearing member shall settle unfinished securities transactions on the accounts of investors and the clearing member, return clearing margin to the settled securities transactions;
b) Within 30 days from the receipt of the notification from VSDCC as prescribed in Point a of this Clause, clearing the member shall fulfill the obligations to VSDCC;
c) Within 05 days from the day on which the clearing member fulfills the obligations as prescribed in Point b of this Clause or from the expiration of the time limit specified in Point b of this Clause, VSDCC shall issue the decision to revoke the clearing membership certificate and disclose information on the market;
d) VSDCC shall return the clearing margin, money and securities contributed to the clearing fund (including principal and interest according to regulations of VSDCC) after the decision to revoke the clearing membership certificate is issued.
Article 164. Suspension of securities clearing and settlement by clearing members of VSDCC
1. VSDCC shall suspend a clearing member from securities clearing and settlement for up to 90 days after the suspension is approved by SSC in the following cases:
a) The member frequently fails to fulfill the obligations specified in the Law on Securities and violate regulations of VSDCC;
b) The member causes serious losses to the clients;
c) The member fails to adequately contribute to the clearing fund within 10 days from the deadline for contribution according to notification of VSDCC;
d) The member fails to pay or fully pay clearing deposit 03 times in 01 month;
dd) VSDCC issues warnings 02 times in 01 month or 01 time in 03 consecutive months regarding securities clearing and settlement;
e) The member fails to fully return the amount of settlement assistance from clearing fund or operational risk management fund or capital of VSDCC within 05 working days from the day on which it is used;
g) The member is no longer capable of securities settlement where the deficit exceeds the clearing margin account balance;
h) The member fails to pay for services related to securities clearing and settlement to VSDCC within 30 days from the payment deadline;
i) Other cases after SSC approves.
2. In case the a clearing member is suspended from securities clearing and settlement under a decision of SSC, this decision shall be implemented by VSDCC.
3. The duration and scope of suspension shall be determined in accordance with membership regulations of VSDCC.
Article 165. Organizations directly opening accounts at VSDCC
1. The following organizations may directly open accounts at VSDCC:
a) State Capital and Investment Corporation;
b) Credit institutions, insurers that trade in debt instruments under organization by Stock Exchanges;
c) SBV, State Treasury, foreign securities depositories.
2. The organizations specified in Point a and Point b Clause 1 of this Article shall open their own securities depository accounts and may use the services provided by VSDCC.
3. The organizations specified in Point c Clause 1 of this Article shall comply with the following regulations:
a) SBV shall open accounts for depositing of valuable papers owned by SBV and depository clients of SBV;
b) State Treasury shall open accounts for depositing of debt instruments serving its relevant operations;
c) Foreign securities depositories may open accounts to provide services relevant to registration, depository, clearing and settlement of securities under written agreements with VSDCC.
4. VSDCC shall provide services for organizations that directly open accounts under written contracts or agreements. Such a contract shall contain the following information:
a) The services;
b) Rights and obligations of VSDCC and the account holder;
c) Dispute settlement;
d) Contract termination;
dd) Financial obligations.
5. The model contract shall be prepared by VSDCC.
Article 166. General provisions
1. A clearing bank shall be SBV or a commercial bank specified in Article 69 of the Law on Securities.
2. Obligations of a commercial bank acting as a clearing bank:
a) Maintain fulfillment of the conditions specified in Clause 2 Article 69 of the Law on Securities;
b) Grant loans to insolvent clearing members to assist in securities settlement;
c) Pay compensation to VSDCC and clearing members for the costs and losses that are caused by the clearing bank’s failure to pay for securities transactions;
d) Submit reports periodically, in an ad hoc manner or when requested by SSC on fulfillment of the conditions specified in Clause 2 Article 69 of the Law on Securities;
dd) Disclose information and fulfill other obligations as prescribed by law.
3. SSC shall carry out periodic and ad hoc inspection of the fulfillment of conditions and obligations of clearing banks. A clearing bank that fails to maintain fulfillment of conditions or fails to fulfill conditions by the deadline imposed by SSC, fails to fulfill its obligations or ensure safe operations, SSC is entitled to select another capable bank as clearing bank. The clearing bank shall be responsible for securities settlement and fulfillment of obligations related to securities settlement until a substitute clearing bank is appointed.
4. The transfer of securities settlement function from a commercial bank to SBV shall be carried out under decisions of the Prime Minister.
Article 167. A commercial bank’s application for acting as a clearing bank
1. The application form No. 51 in the Appendix hereof.
2. Information about the bank, including fulfillment of the conditions specified in Article 69 of the Law on Securities.
3. The decision on establishment of the commercial bank.
4. The written commitment to establish a system and mechanism for management of deposit accounts and money; settlement accounts and money; promptly and fully provide information about deposit and settlement money at the request of VSDCC and SSC.
Article 168. Procedures for approving a commercial bank as a clearing bank
1. SSC shall select commercial banks as clearing banks that provide securities settlement services on the securities trading system.
2. Within 15 working days from the receipt of the satisfactory application, SSC shall decide whether to accept a bank as clearing bank. In case the application is rejected, SSC shall issue a written rejection and provide explanation.
REGISTRATION OF SECURITY INTERESTS FOR SECURITIES COLLECTIVELY REGISTERED AT VSDCC
Article 169. Subjects, scope and principles
1. Securities that have been collectively registered at VSDCC shall be used as guarantee for fulfillment of obligations in secured transactions at VSDCC. Registration of security interests of other securities shall be carried out at Property and Transaction Registration Center of National Secured Transaction Registry affiliated to the Ministry of Justice.
2. The registration of security interests at VSDCC shall comply with regulations of law on registration of security interests and the following principles:
a) The securities registered as security interests must be transferable and are not deposited in securities transactions, not frozen, impounded and must be deposited before execution. During the duration of the security interest, the securities registered as security interests must be frozen at VSDCC;
b) Information about securities held by the guarantor in the registration application must be consistent with information at VSDCC;
c) The effective date of a security interest is the time written by VSDCC on the security interest register;
d) When cancelling registration of a security interest, VSDCC shall unfreeze the securities registered as security interest.
3. The applicant shall have a written agreement that allows VSDCC to freeze, provide information about securities registered as security interests as prescribed in this Decree.
4. Once securities registration is cancelled, VSDCC shall notify the depository member where the securities are deposited as collateral, which will request the parties to complete procedures for cancelling registration of security interests. In case the parties fail to cancel registration of security interests, VSDCC shall cancel the registration of security interest on the same date of cancellation of securities registration.
5. In case of discrepancies between securities laws, regulations of law on registration of security interests and their guiding documents, securities laws shall apply. For issues that are not regulated by this Decree but regulated by regulations of law on registration of security interests, the latter shall apply.
Article 170. Documentation and procedures for registration, changes, remedy of security interest; cancelling registration of security interests
1. An application for registration of security interests shall include:
a) The application form No. 52 in the Appendix hereof;
b) The list of securities registered as security interests according to form No. 53 in the Appendix hereof;
c) The authorization letter in case the applicant is an authorized person.
2. An application for changes or remedy of security interests shall include:
a) The application form No. 54 in the Appendix hereof;
b) The list of securities to be changed or remedied according to form No. 55 in the Appendix hereof.
3. An application for cancellation of registration of security interests under agreement of both parties shall include:
a) The application form No. 56 in the Appendix hereof;
b) The list of securities to be unregistered according to form No. 57 in the Appendix hereof.
4. An application for cancellation of registration of security interests requested by a party or a civil judgment execution authority shall include:
a) The application form No. 58 in the Appendix hereof;
b) The list of securities to be unregistered according to form No. 59 in the Appendix hereof;
c) The contract on pledging of securities which specifies that a party is entitled to request VSDCC to deregister security interests (if the cancellation is requested by a party);
d) A document about settlement of collateral that is the securities registered as security interest of a civil judgment execution authority (if the deregistration is requested by a civil judgment execution authority).
5. The application for cancellation of registration of security interests requested by the guarantee and the two parties that conclude the contract for provision of collateral management and settlement services with VSDCC shall include:
a) The application form No. 60 in the Appendix hereof;
b) Form No. 61 in the Appendix hereof.
6. Submission of applications and time limit for processing applications
a) The application for registration, change, remedy of security interest shall be submitted to VSDCC via the depository member where the securities are deposited as collateral in person, by post or via the online security interest registration system. The application for cancellation of registration of security interest prescribed in Clause 4 and Clause 5 of this Article shall be submitted in person or by post to VSDCC;
b) VSDCC shall process the application, issue a document certifying the registration, change or cancellation of registration of security interest according to Form No. 62 in the Appendix hereof within the day on which the satisfactory application is received. If the satisfactory application is received after 3 pm, it shall be processed within the next working day. In case the processing of an application has to be prolonged, it must be done within 03 working days.
7. Provision of the document certifying the registration, change, repair of security interest; cancellation of registration of security interests
a) In the cases specified in Clauses 1, 2, 3 of this Article, VSDCC shall provide the certifying document in person at VSDCC, by post or via the online security interest registration system;
b) In the cases specified in Clauses 4, 5 of this Article, VSDCC shall provide the certifying document in person or by post.
Article 171. Providing information about registration of security interests
1. Individuals and organizations are entitled to find or request information about securities registered as security interests at VSDCC.
2. The People’s Courts, the People’s Procuracies, investigation authorities, civil judgment execution authorities, other competent authorities are entitled to request VSDCC to provide information about securities registered as security interests to serve investigation, prosecution, adjudication, judgment execution within their scope.
3. Information about securities registered as security interests to be provided by VSDCC include: the guarantors and guaranteed parties; ticker symbols, quantity of securities with security interests; time of registration of security interests.
4. Documentation, procedures and method for providing information
a) The information requestor shall submit form No. 63 in the Appendix hereof to VSDCC via the depository member in person, by post or via the online security interest registration system.
b) The People’s Courts, the People’s Procuracies, investigation authorities, civil judgment execution authorities shall send written requests directly or by post to VSDCC;
c) VSDCC shall process requests for information within the time limit specified in Point b Clause 6 Article 170 of this Decree;
d) Information shall be provided for organizations and individuals in accordance with Point a Clause 7 Article 170 of this Decree; Information shall be provided for the People’s Courts, the People’s Procuracies, investigation authorities, civil judgment execution authorities in accordance with Point b Clause 7 Article 170 of this Decree.
Article 172. Settlement of collateral that is securities with security interest
Settlement of collateral that is securities with security interests that have been registered at VSDCC shall be carried out in accordance with civil laws, securities laws and relevant laws. In case the settlement of collateral leads to transfer of ownership of the securities with security interests, VSDCC shall carry out the ownership transfer in accordance with the Law on Securities and instructions of the Ministry of Finance.
Article 173. Duties, entitlements and responsibilities of VSDCC regarding registration of security interests
1. Provide instructions and organize the registration of security interests for securities that are collectively registered at VSDCC in accordance with this Decree and relevant legislative documents.
2. Develop an electronic database about security interest registration at VSDCC; provide instructions on use and access of information on the online security interest registration system at VSDCC.
3. Provide instructions on freezing and unfreezing securities registered as security interests.
4. Provide information about securities with security interests at the request of organizations, individuals and competent authorities.
5. Transmit data about registration of security interests with securities that are collectively registered at VSDCC to the Ministry of Justice for update and synchronization with the database about guarantee with movable property (except airplanes and ships)
6. VSDCC shall collect charges for registration of security interests in accordance with pricing regulations of the Ministry of Finance.
7. Submit annual reports to the Ministry of Justice on registration of security interests with securities that are registered at VSDCC.
SECURITIES COMPANIES, SECURITIES INVESTMENT FUND MANAGEMENT COMPANIES, BRANCHES AND REPRESENTATIVE OFFICES IN VIETNAM OF FOREIGN SECURITIES COMPANIES AND FUND MANAGEMENT COMPANIES
Article 174. General provisions
1. In case of changes to information on the licenses for establishment and securities operation, certificates of operation registration, approval decisions of securities companies, securities investment fund management companies, branches and representative offices in Vietnam of foreign securities companies and fund management companies, applications for revisions to the licenses, certificates and decisions shall be submitted to SSC.
2. SSC shall disclose information about the licenses for establishment and securities operation, certificates of operation registration, approval decisions and revisions to these documents on the website of SSC.
3. When receiving the licenses for establishment and securities operation, certificates of registration, approval decisions, revised licenses for establishment and securities operation, certificates of registration, approval decisions, securities companies, securities investment fund management companies, branches and representative offices in Vietnam of foreign securities companies and fund management companies shall register the information mentioned in Clause 1 of this Article at business registration authorities. Finance and accounting of securities companies, securities investment fund management companies, branches of foreign securities companies shall be carried in accordance with instructions of the Ministry of Finance.
Section 1. ISSUANCE, REISSUANCE, REVISION OF THE ESTABLISHMENT AND OPERATION LICENSES, CERTIFICATION OF OPERATION REGISTRATION
Article 175. Minimum charter capital
1. Minimum charter capital for securities business operations of securities companies in Vietnam:
a) Securities brokerage: 25 billion VND;
b) Proprietary trading: 50 billion VND;
c) Securities underwriting: 165 billion VND;
d) Securities investment counseling: 10 billion VND.
2. Minimum capital provided for the branch in Vietnam of a foreign securities company is 10 billion VND.
3. The minimum charter capital of a fund management company, minimum capital provided for the branch in Vietnam of a foreign fund management company is 25 billion VND.
4. In case an organization registers more than one operation, the minimum charter capital shall be the sum of the minimum charter capital of each operation registered.
Article 176. Application for issuance, replacement of the license for establishment and securities operation of securities companies and securities investment fund management companies
1. The application form No. 64 in the Appendix hereof.
2. The written agreement on establishment of the company of the shareholders, contributing members or the decision of the company owner which specifies: the company’s name (full name, business name in Vietnamese and English, abbreviated name), headquarters address; business operations; charter capital; ownership structure; approval of the draft charter of the company; the legal representative cum authorized representative who completes the company establishment procedures.
3. The premises lease contract; documents proving the right to own or use the premises; description of property according to Form No. 65 in the Appendix hereof.
4. The list of personnel, personal information sheets according to Form No. 66 and Form No. 67 in the Appendix hereof enclosed with the judicial records of members of the Board of Directors, President of the Member assembly, President of the company; General Director/Director that are issued within 06 months before the application is submitted.
5. The list of shareholders and contributing members according to form No. 68 in the Appendix hereof:
a) For individuals: the personal information sheet according to Form No. 67 in the Appendix hereof; judicial records issued within 06 months before the application is submitted of the founding shareholders and members that are individuals who contribute more than 5% of charter capital;
b) For organizations: the Certificate of Enterprise Registration or an equivalent document; the company's charter; the decision issued by a competent authority according to the company's charter on contribution of capital to establish the company and appointment of the authorized representative; the authorized representative’s personal information sheet according to Form No. 67 in the Appendix hereof; the audited financial statements of the last 02 years preceding the year in which the license is applied for of the contributing organizations. The contributing organization that is the parent company shall also include the audited consolidated financial statement; the written approval issued by SBV (for commercial banks) or by the Ministry of Finance (for insurers) for the contribution of capital to establish the company (if any);
c) The written declarations of the organizations and individuals of fulfillment of the requirements specified in Point c Clause 2 Article 74 and Point c Clause 2 Article 75 of the Law on Securities.
6. The decision issued by a competent authority on operational, internal control, risk management processes.
7. The draft charter of the company.
8. The application for replacement of the license in the case specified in Clause 2 Article 135 of the Law on Securities shall include the application form mentioned in Clause 1 of this Article, the original copy of the establishment and operation license and the revised licenses that were previously issued.
Article 177. Application for issuance of the establishment and operation license of branches in Vietnam of foreign securities companies and foreign securities investment fund management companies
1. The application form No. 64 in the Appendix hereof.
2. The decision issued by a competent authority according to the company's charter on establishment of the branch in Vietnam; appointment of the branch manager, provision of capital for the branch in Vietnam of the foreign securities company or fund management company.
3. The list of personnel, personal information sheets according to Form No. 66 and Form No. 67 in the Appendix hereof enclosed with the judicial record of the branch manager which is issued within the last 06 months before the application is submitted.
4. The charter of the foreign securities company.
5. The written approval issued by a competent authority of country where the foreign securities company is headquartered (home country), if any.
6. The establishment and operation license of the foreign securities company or equivalent documents issued by competent authorities of its home country.
7. The latest audited annual financial statement of the foreign securities company. The foreign securities company that is a parent company shall also include the audited consolidated financial statement.
8. The documents specified in Clause 3, 6 Article 176 of this Decree.
9. Documents relevant to the funds being invested in Vietnam (if any).
Article 178. Issuance of certificate of registration of representative office of foreign securities companies and fund management companies in Vietnam
1. A certificate of representative office registration shall have an effective period of up to 05 years and must not expire after the expiration date of the establishment and operation license or Certificate of Enterprise Registration or an equivalent document of the foreign securities organization.
2. The application for the certificate of registration of representative office shall contain:
a) The application form No. 64 in the Appendix hereof;
b) The decision issued by a competent authority according to the company's charter on establishment of the representative office in Vietnam and appointment of representative office manager;
c) The list of personnel, personal information sheets according to Form No. 66 and Form No. 67 in the Appendix; the judicial record of the representative office manager which is issued within the last 06 months;
d) The documents specified in Clauses 3 Article 176 and Clauses 4, 5, 6, 7 Article 177 of this Decree;
dd) In case the foreign securities organization is making investment in Vietnam, the following documents are also required: list of investment funds, investment portfolios in Vietnam confirmed by the depository bank; transaction code registration certificates issued by the investment funds in Vietnam.
Article 179. Application for addition of securities operations
1. The application form No. 69 in the Appendix hereof.
2. The decision of the GMS, Board of Members or the company’s owner on addition of securities operations.
3. List of additional personnel according to form No. 66 in the Appendix hereof.
4. Description of facilities according to form No. 65 in the Appendix hereof and the documents specified in Clause 6 Article 176 of this Decree.
Article 180. Application for termination of securities operations
1. The application form No. 69 in the Appendix hereof.
2. The decision of the GMS, Board of Members or the company’s owner on termination of securities operations.
3. a) The report on settlement of concluded contracts with clients according to form No. 70 in the Appendix hereof.
4. The report on finalization of proprietary trading accounts in case of termination of proprietary trading.
5. The decision to resign membership at the Stock Exchange and VSDCC in case of the securities company is a member of the Stock Exchange and VSDCC.
Article 181. Application for change of name, headquarters address, charter capital of a subsidiary company or securities investment fund
1. The application form No. 69 in the Appendix hereof.
2. The decision of the GMS, Board of Members or the company’s owner on the changes.
3. In case of headquarters relocation, the application shall also include the documents specified in Clause 3 Article 176 of this Decree.
4. In case of increase in charter capital, the application shall also include the confirmation of the increase issued by the bank where the escrow account is opened, confirmation by the permitted audit organization or the financial statement that is prepared after charter capital is increased which is audited by an accredited audit organization. This does not apply to increase in charter capital from equity sources.
5. In case of decrease in charter capital, the application shall also include the report on equity after decrease which is audited by an accredited audit organization.
Article 182. Legal representatives of securities companies and securities investment fund management companies
1. A securities company or securities investment fund management company may have 01 or some legal representatives as prescribed by its charter. the charter shall specify the responsibilities, quantity, titles, rights and obligations of each legal representative. To be specific:
a) In case the securities company or securities investment fund management company has 01 legal representative, the President of the Board of Directors, President of the Board of Members, Director/General Director shall be the legal representative. If this is not specified in the company's charter, the legal representative of the company shall be the President of the Board of Directors, President of the Board of Members or President of the company;
b) In case the securities company or securities investment fund management company has more than one legal representative, the President of the Board of Directors, President of the Board of Members and the Director/General Director shall be the legal representatives. The company shall register the legal representatives with SSC. The registered legal representatives shall provide documents and work with SSC.
2. The application for change of legal representative shall contain:
a) The application form No. 69 in the Appendix hereof;
b) In case the legal representative is changed without changing the title: the decision of the Board of Directors, Board of Members, the company’s owner on designation, dismissal of the President of the Board of Directors, President of the Board of Members, the company’s President or Director/General Director and personal information form No. 67 in the Appendix hereof; the designated person’s judicial record that is issued within 06 months before the application is submitted;
c) In case of change to the title of the legal representative: The decision of the GMS, Board of Members or the company’s owner to change the title of the legal representative, revisions to the company's charter and the documents specified in Point b of this Clause;
c) In case of change to personal information of the legal representative: The personal information sheet according to Form No. 67 in the Appendix hereof.
Article 183. Application for change of name, headquarters address, capital provided for the branch, branch manager, representative office manager of a foreign securities company or foreign fund management company
1. The application form No. 69 in the Appendix hereof.
2. The decision on the changes of the competent authority according to the charter of the foreign securities company.
3. The certification of increase in capital in case of increase in provided capital.
4. The report on decrease in capital or the financial statement audited by an accredited audit organization in case of decrease in capital.
5. The documents specified in Clause 3 Article 176 of this Decree in case of change to address of the headquarters or representative office.
6. The personal information sheet according to Form No. 67 in the Appendix; the judicial record of the representative office manager which is issued within the last 06 months before the application is submitted in case of change of the branch or representative office manager.
Article 184. Extension of operating duration of representative offices in Vietnam of foreign securities companies and fund management companies
1. The operating duration of a representative office in Vietnam of a foreign securities company or foreign fund management company will be extended if the conditions specified in Clause 1 Article 78 of the Law on Securities are satisfied and it has not incurred administrative penalties for violations against regulations on securities and the securities market over the last 06 years before the application is received by SSC.
2. At least 30 days before the expiration date of the representative office registration certificate, the foreign securities organization shall submit the application for extension to SSC. The application shall contain:
a) The application form No. 69 in the Appendix hereof;
b) The decision on extension of operating duration of the representative office issued by a competent authority according to the company's charter;
b) In case of changes to the representative office registration certificate: the documents specified in Article 178 of this Decree.
Article 185. Application for change of name, headquarters address of foreign securities organizations with branches and representative offices in Vietnam
1. The application form No. 69 in the Appendix hereof.
2. The Certificate of Enterprise Registration or equivalent documents issued by competent authorities proving the changes.
Article 186. Procedures for issuing, revising the license for establishment and securities operation and certificate of operation registration
1. SSC shall carry out an inspection at the premises of the securities company, securities investment fund management company, branch in Vietnam of foreign securities company or foreign fund management company in case of change of headquarters address, addition of proprietary trading operations, securities brokerage before issuing or revising the license for establishment and securities operation.
2. Procedures for issuance of the license for establishment and securities operation:
a) Within 20 days from the receipt of the satisfactory application, SSC shall send a written request for completion of facilities, freezing of contributed capital and preparation of personnel. The shareholders, contributing members, owner of the company may use contributed capital to invest in facilities. The remainder of contributed capital shall be frozen in an account opened at a clearing bank, which will only be unfrozen after the license for establishment and securities operation is issued;
b) If SSC’s request is not fulfilled within 03 months from the day on which it is received, SSC is entitled to reject the application;
c) Within 05 working days from the written certification of frozen capital, the inspection record and other valid documents, SSC shall issue the license for establishment and securities operation. In case the application is rejected, SSC shall issue a written rejection and provide explanation.
3. Procedures for issuance of the certificate of representative office registration:
a) Within 07 working days from the receipt of the satisfactory application, SSC shall issue the certificate of representative office registration. In case the application is rejected, SSC shall issue a written rejection and provide explanation;
b) Within 15 days from the official inauguration date, the representative office shall submit Form No. 71 in the Appendix hereof to SSC.
4. In case of addition or removal of securities operations, change of name, headquarters location, charter capital, legal representative, branch or representative office manager, replacement of the license for establishment and securities operation, within 07 working days from the receipt of the satisfactory application and the inspection record mentioned in Clause 1 of this Article, SSC shall issue the revised license or certificate and, in case of termination of securities brokerage, the decision to revoke the certificate of securities depository registration and the certificate of eligibility to provide securities clearing and settlement services. In case the application is rejected, SSC shall issue a written rejection and provide explanation.
Section 2. Operations of SECURITIES COMPANIES, SECURITIES INVESTMENT FUND MANAGEMENT COMPANIES, BRANCHES IN VIETNAM OF FOREIGN SECURITIES COMPANIES AND FUND MANAGEMENT COMPANIES
Article 187. Issuance, offering of shares, increase in charter capital of securities companies, securities investment fund management companies, branches in Vietnam of foreign securities companies and fund management companies
1. securities companies, securities investment fund management companies, branches in Vietnam of foreign securities companies and fund management companies must not increase charter capital before securities operations are officially started.
2. The increase in charter capital must ensure that:
a) The conditions for and regulations on public offering and issuance of securities; private placement of securities are complied with in case of capital increase by offering or issuance;
b) The undistributed post-tax profit is sufficient to pay dividends according to the latest financial statement which is audited by an accredited audit organization in case of scrip issue;
c) In case of share issuance to increase share capital from equity, issuance of ESOP shares, the equity must be sufficient to increase capital according to the latest financial statement which is audited by an accredited audit organization, including the following sources: share premium, development investment fund; undistributed post-tax profit; other funds (if any) used for increasing charter capital as prescribed by law;
d) Contributed capital/share capital under agreements between the company and the creditors shall be the debts that are presented in the latest annual financial statement which is audited or examined and approved by the General Meeting of Shareholders, Board of Members, the company’s owner;
dd) The merger of securities companies, other securities investment fund management companies has been approved by SSC in accordance with Article 207 of this Decree.
3. a) Before increasing charter capital, the securities company or fund management company that is a limited liability company, branch in Vietnam of a foreign securities company or foreign fund management company shall submit an application for registration to SSC, which shall contain:
a) The application form No. 72 in the Appendix hereof;
b) The decision of the Board of Members or the company’s owner to increase capital and the plan for capital raising; the decision of a competent authority of the foreign securities organization on provision of additional capital for its branch in Vietnam;
c) The list of new contributing capitals, members contributing at least 5% of charter capital according to Form No. 68 in the Appendix hereof.
4. Before making an offering or issuance to increase charter capital, the securities company or fund management company that is a joint stock company shall submit an application for registration to SSC, which shall contain:
a) The documents specified in Article 43 of this Decree in case of private placement;
b) If the securities company or securities investment fund management company is not a public company offering shares to existing shareholders according to their holdings, the app shall contain: the application form No. 73 in the Appendix hereof, the decision of the General Meeting of Shareholders to approve the issuance plan and the plan to use the revenue generated by the offering; the documents specified in Clauses 4, 5, 7, 8, 9 Article 43 of this Decree;
c) A securities company or securities investment fund management company that makes a public securities offering, or other kinds of offering or issuance to increase actual capital shall apply the same regulations that apply to public companies.
5. Settlement of shares that are not subscribed or paid for by investors, fractional shares in the cases specified in Clause 4 of this Article shall be carried out in accordance with Article 42 of this Decree.
6. Within 07 working days from the receipt of the satisfactory application as prescribed in Clause 3 of this Article, SSC shall send a written response to the securities company, securities investment fund management company, or branch of the foreign securities company or foreign fund management company.
7. Procedures for registration of offering and issuance mentioned in Clause 4 of this Article shall be the same as procedures to be followed by public companies.
8. A securities company or securities investment fund management company that makes an offering or issuance according to Clause 4 of this Article shall submit reports as if it is a public company.
9. Within 07 working days after charter capital is increased, the company shall apply for the revised license for establishment and securities operation in accordance with Article 174 and Article 181 of this Decree.
Article 188. Decrease in charter capital of securities companies, securities investment fund management companies, branches in Vietnam of foreign securities companies and foreign fund management companies
1. Decrease in charter capital of securities companies, securities investment fund management companies, branches in Vietnam of foreign securities companies and foreign fund management companies shall comply with regulations of the Law on Enterprises and satisfy the following conditions:
a) The remaining equity after the decrease does not fall below the level specified in Article 175 of this Decree;
b) Liquidity ratio after decrease is at least 180%;
c) The internal between the capital decreases must be at least 12 months;
d) For securities companies and securities investment fund management companies that are joint stock companies, the conditions shall include repurchase of their own shares as prescribed in Article 36 of the Law on Securities;
dd) Regulations on foreign ownership ratio specified in Article 77 of the Law on Securities are complied with.
2. a) Before decreasing charter capital, the securities company or fund management company that is a limited liability company, branch in Vietnam of a foreign securities company or foreign fund management company shall submit an application for registration to SSC, which shall contain:
a) The application form No. 72 in the Appendix hereof;
b) The decision of the Board of Members or the company’s owner to increase capital and the plan for capital decrease, which must comply with regulations on foreign ownership ratio;
c) The decision of the Board of Directors, the Board of Members to approve the plan for repurchase of shares or return of contributed capital;
d) For securities companies and securities investment fund management companies that are public companies repurchasing their own shares, the application shall include the documents specified in Clause 1 Article 37 of the Law on Securities.
3. Securities companies and securities investment fund management companies that are public companies repurchasing their own shares shall follow the procedures specified in Clause 8 Article 36 and Article 37 of the Law on Securities.
4. Within 07 working days from the receipt of the application specified in Clause 2 of this Article, SSC shall issue a written response. In case the application is rejected, SSC shall issue a written rejection and provide explanation.
5. After the notification of SSC is received, procedures for capital decrease shall be followed as follows:
a) Securities companies, securities investment fund management companies that are limited liability companies shall follow the procedures specified in the Law on Enterprises;
b) Securities companies, securities investment fund management companies that are joint stock companies shall follow the procedures applied to public companies;
c) Branches in Vietnam of foreign securities companies and foreign fund management companies shall comply with foreign exchange laws.
6. Within 10 working days from the from the day on which repurchase of shares, return of contributed capital, transfer of contributed capital to the parent company is completed, the securities company, securities investment fund management company, or branch of the foreign securities company or foreign fund management company shall follow procedures for revising its license for establishment and securities operation specified in Article 174 and Article 181 of this Decree.
Article 189. Overseas offering and listing of securities companies and securities investment fund management companies
1. Conditions, documentation, procedures for approving overseas securities offering by subsidiary companies and securities investment fund management companies that are joint stock companies and limited liability companies shall comply with Section 6 Chapter II of this Decree.
2. Conditions, documentation, procedures for approving listing of securities offering of subsidiary companies and securities investment fund management companies at foreign Stock Exchanges shall comply with Section 4 Chapter III of this Decree.
Article 190. Conditions for establishment, addition of operations of domestic branches of securities companies and securities investment fund management companies
1. Branches of a securities company or securities investment fund management company may only perform authorized operations among the licensed operations of the company. Branches of a fund management company may only provide securities investment advisory services.
2. Conditions for establishment, addition of operations of domestic branches of securities companies and securities investment fund management companies:
a) The conditions for business operation of the headquarters, existing branches and transaction offices are maintained;
b) It is not facing warning, control, special control or suspension as prescribed by law;
c) It does not incurred administrative penalties for violations against regulations on securities and the securities market over the last 06 months before the application is received by SSC;
d) There are premises and equipment serving securities business at the branch;
dd) The branch manager has a securities practicing certificate that is suitable for the operations of the branch; satisfies the standards specified in Point a and Point d Clause 5 Article 74 of the Law on Securities or Points, a, c, d Clause 5 Article 75 of the Law on Securities. At least 02 employees have the securities practicing certificates that are suitable for the operations of the branch.
Article 191. Conditions for establishment of domestic transaction offices of securities companies
1. The conditions specified in Points a, b, c Clause 2 Article 190 of this Decree are satisfied.
2. There are at least 02 securities practitioners working at the transaction office.
3. The transaction office is located within the province where the securities company’s headquarters or branch is located.
4. The transaction office only assists in provision of securities brokerage, securities investment advisory and securities depositing services by the headquarters or a branch to which the transaction office is affiliated.
Article 192. Conditions for establishment of domestic representative offices of securities companies and securities investment fund management companies
1. Representative offices are affiliated units of securities companies and securities investment fund management companies. Conditions for establishment of representative offices of securities companies and securities investment fund management companies:
a) The conditions specified in Points a, b, c Clause 2 Article 190 of this Decree are satisfied;
b) The representative office has its own premises.
2. A representative office must not conduct business operation, activities relevant to securities transaction, management of assets of trustors, provision of investment advisory services; must not directly or indirectly conclude business contracts. The scope of operation of a representative office shall include one, some or all of the following operations:
a) Communications and market survey;
b) Development of cooperative projects in the field of securities and securities market where the representative office is located;
c) Supervise execution of projects and concluded contracts that are relevant to the company’s business lines.
Article 193. Application for establishment of a domestic branch, subsidiary company, representative office of a securities company or securities investment fund management company
1. The application form No. 75 or 76 in the Appendix hereof.
2. The decision of the Board of Directors, Board of Members or the company’s owner on establishment of the branch, transaction office, representative office or addition of securities operations.
3. The premises lease contract; documents proving the right to own or use the premises; description of property according to Form No. 65 in the Appendix hereof.
4. The list of personnel, personal information sheets according to Form No. 66 in the Appendix hereof; the judicial record of the branch manager which is issued within the last 06 months before the application is submitted and personal information sheet according to form No. 67 in the Appendix hereof.
Article 194. Application for termination of operations, shutdown of a domestic branch, subsidiary company, representative office of a securities company or securities investment fund management company
1. The application form No. 75 or 76 in the Appendix hereof.
2. The decision of the Board of Directors, Board of Members or the company’s owner on shutdown of the branch, transaction office, representative office or removal of securities operations.
3. The plan for settlement of effective contracts with clients according to form No. 84 in the Appendix hereof, which specify the disclosure of information, notifying clients of the removal of operations or shutdown of the domestic branch or transaction office, and the time limit of at least 15 days for finalization of the clients’ accounts.
Article 195. Conditions for establishment of an overseas branch, subsidiary company, representative office of a securities company or securities investment fund management company
1. The conditions specified in Points a, b, c Clause 2 Article 190 of this Decree are satisfied.
2. There is a plan for establishment of the overseas branch, subsidiary company or representative office which is approved by the GMS, the Board of Members or the company’s owner.
3. Financial safety ratios are maintained after capital is provided for the overseas branch, subsidiary company or representative office.
4. Equity is still greater than the minimum charter capital specified in Article 175 of this Decree after capital is provided for the overseas branch, subsidiary company or representative office.
Article 196. Application for permission for establishment, shutdown of an overseas branch, subsidiary company, representative office of a securities company or securities investment fund management company
1. The application form No. 74 or 75 in the Appendix hereof.
2. The resolution of the GMS, Board of Members or the company’s owner on approval for the establishment or shutdown of the overseas branch, subsidiary company or representative office, which contain the estimated capital, sources of capital, partners to the establishment of the subsidiary company (if any), contents and scope of operation, business plan in case of establishment; contract settlement plan in case of shutdown.
Article 197. Application for change of name, location of a branch, transaction office, representative office of a securities company or securities investment fund management company
1. The application form No. 76 in the Appendix hereof.
2. The decision of the Board of Directors, Board of Members or the company’s owner on the change of name, location of the branch, transaction office, representative office or branch manager.
3. In case of change of location, the description of property according to Form No. 65 in the Appendix hereof; the premises lease contract, documents proving the right to own or use the premises.
4. In case of change of the branch manager, the personal information sheets according to Form No. 67 in the Appendix hereof; the judicial record of the branch manager which is issued within the last 06 months before the application is submitted.
Article 198. Conditions for provision of margin trading services and advance payment for securities
1. A securities company may provide margin trading services or advance payment for securities if the following conditions are satisfied:
a) It is licensed to provide securities brokerage services and its Board of Directors, Board of Members or owner approves the provision of margin trading services or advance payment for securities;
b) It is not facing warning, being put under control, special control, suspension or termination, or undergoing consolidation, merger, dissolution or bankruptcy;
c) The ratio of total debt to equity is conformable with regulations of the Ministry of Finance; equity is not smaller than the minimum charter capital specified in Article 175 of this Decree;
d) The liquidity ratio reaches at least 180% in the last 06 months before the application is submitted.
dd) The company has a system for provision of margin trading services, supervision of margin accounts, management of money deposited for securities trading; processes for risk management and control of margin trading.
2. SSC is entitled to grant approval for provision of margin trading services and advance payment for securities with the securities put up as collateral according to instructions of the Ministry of Finance.
Article 199. Conditions for provision of securities lending services
1. A securities company may provide securities lending when the following conditions are satisfied:
a) It is licensed to provide securities brokerage services and its Board of Directors, Board of Members or owner approves the provision of securities lending services;
b) The conditions specified in Points b, c Clause 1 Article 198 of this Decree are satisfied;
c) It has a system for provision of securities lending services, supervision of borrowers’ accounts, a system for investor-specific management of money deposited for securities trading; processes for risk management and control of securities lending.
d) The liquidity ratio reaches at least 220% in the last 06 months before the application is submitted.
2. A securities company may provide day trading services when the conditions for provision of securities lending services are satisfied.
3. SSC is entitled to grant approval for provision of securities lending services according to the list of lendable securities promulgated by the Ministry of Finance, except government bonds.
Article 200. Conditions for a securities company to cooperate with credit institutions in provision of margin trading services and advance payment for securities
1. It is licensed to provide securities brokerage services and its Board of Directors, Board of Members or owner approves the provision of margin trading services or advance payment for securities in cooperation with other credit institutions.
2. It is not undergoing termination, suspension, consolidation, merger, dissolution or bankruptcy.
3. There are contracts on principle with the Vietnamese credit institutions for provision of margin trading services and advance payment for securities, which specify responsibilities of the parties, lending ratios, pledged securities as prescribed by law.
Article 201. Conditions for provision of online securities trading services by securities companies
1. The securities company is a member of the Stock Exchange and it’s the provision of online securities trading services is approved by its Board of Directors, Board of Members or owner.
2. There is personnel to operate the trading system; technical solutions for assurance of safety of the system and data storage and failure prevention as instructed by the Ministry of Finance.
3. The conditions specified in Clause 2 Article 200 of this Decree are satisfied;
4. Online securities trading services are directed provided for investors.
Article 202. Offering financial products
1. Conditions for an issuing organization to offer financial products:
a) It is a securities company that is licensed for proprietary trading;
b) Its charter capital and equity is at least 1.000 billion VND according to the latest audited financial statement;
c) It is not being suspended, terminated or undergoing consolidation, merger, dissolution or bankruptcy; it does not incur any administrative penalties for violations against regulations on securities and the Prime Minister in the last 06 months before the application is received by SSC;
d) The latest annual financial statement which is audited by an accredited audit organization with unqualified opinions or qualified opinions that do not affect the eligibility for offering; the issuer has explanatory documents and confirmation from the audit organization about the impacts of the qualified opinions;
dd) The decision of the GMS, Board of Members or the company’s owner to approve the offering of financial products;
e) Obligations to pay for the financial products are fulfilled.
2. The Ministry of Finance shall provide guidelines for financial products, documentation and procedures for offering of financial products, underlying securities, limits on offering of financial products and transaction of financial products, implementation method, market making, risk management, protection of interests of financial product owners, product introduction, reporting and information disclosure by issuers, reporting and information disclosure by depository banks.
Article 203. Application for approval for service provision by a securities company
1. The application form No. 77 in the Appendix hereof.
2. The decision of the company’s Board of Directors, Board of Members or owner to approve the provision of services for which the company is qualified according to Articles 198, 199, 200, 201 of this Decree.
3. The decision issued by a competent authority on operational, internal control, risk management processes.
4. In case of margin trading services and advance payment for securities, the application shall include description of the trading system serving margin trading, supervision of margin accounts; the system for investor-specific management of money deposited for securities trading at the banks.
5. In case of securities lending, the application shall include description of the trading system serving securities lending, supervision of borrowers’ accounts; the system for investor-specific management of money deposited for securities trading at the banks.
6. In the case of online trading services, the application shall include the decision to approve the membership, result of system inspection by the Stock Exchange and the documents specified in Clause 2 Article 201 of this Decree.
Article 204. Termination of service provision
1. A securities company may voluntarily terminate service provision after it is approved by SSC. The application for termination shall include:
a) The application form No. 77 in the Appendix hereof;
b) The decision of the Board of Directors, Board of Members or the company’s owner to approve the termination of service provision;
c) The plan for settlement of effective contracts according to form No. 84 in the Appendix hereof.
2. The securities company that fails to maintain fulfillment of any of the conditions specified in Articles, 198, 199, 200, 201 of this Decree will not be allowed to sign new contracts and renew contracts for the services being provided.
3. Within 04 months from the date of failure to maintain fulfillment of any of the conditions specified in Articles, 198, 199, 200, 201 of this Decree, SSC shall issue a decision to terminate provision of services of the securities company.
Article 205. Procedures for approving operations subject to approval by SSC
1. In case of establishment of a branch or representative office, addition of securities brokerage, proprietary trading operation at the branch, provision of online securities trading service, relocation of a domestic branch or transaction office of a securities company or securities investment fund management company:
a) Within 07 working days from the receipt of the satisfactory application as prescribed in Article 193, 197 or 203 of this Decree, SSC shall send a written response to the applying company regarding its facilities;
b) Within 07 days from the day on which the applying company completes its facilities and sends a notification to SSC, SSC shall carry out inspections at the company’s headquarters, domestic branch transaction office before granting approval;
c) Within 07 working days from the day on which the inspection result mentioned in Point b of this Clause is available, SSC shall decide whether to grant approval, or reject the application and provide explanation.
2. In addition to the cases specified in Clause 1 of this Article, within 07 working days from the receipt of the satisfactory application as prescribed in Article 193, 194, 196, 197 203, Clause 1 Article 204 of this Decree, SSC shall decide whether to grant approval, or reject the application and provide explanation.
3. The domestic branch, transaction office or representative office of the securities company or securities investment fund management company shall start operating within 03 months from the day on which approval is granted by SSC. Otherwise, SSC will revoke the establishment decision.
4. In case the domestic branch, transaction office or representative office terminates service provision, within 15 days from the termination date, the securities company or securities investment fund management company shall submit a report according to form No. 70 or 78 in the Appendix hereof and send the original copy of the decision on approval for establishment of the branch, transaction office or representative office, approval for service provision to SSC. Within 05 working days from the day on which the report is received, SSC shall issue the decision to revoke the approval.
Section 3. REORGANIZATION, SUSPENSION, REVOCATION OF LICENSES FOR ESTABLISHMENT AND SECURITIES OPERATION AND CERTIFICATES OF REPRESENTATIVE OFFICE REGISTRATION
Article 206. Conditions for reorganization of a securities company or securities investment fund management company
1. The reorganization and reorganization plan are approved by the company’s GMS, Board of Members or owner.
2. The securities company that is established after reorganization shall satisfy the conditions specified in Clause 1, Point c Clause 2, Clause 4, Clause 5 Article 74 of the Law on Securities. The securities investment fund management company established after reorganization shall satisfy the conditions specified in Clause 1, Point c Clause 2, Clause 4, Clause 5 Article 75 of the Law on Securities.
3. In case a securities company or securities investment fund management company is converted into a single-member limited liability company after reorganization, it shall comply with Point a Clause 3 Article 74, Point a Clause 3 Article 75 of the Law on Securities.
4. The reorganization shall comply with relevant laws.
Article 207. Documentation and procedures for reorganization of a securities company or securities investment fund management company
1. The application for approval for reorganization shall include:
a) The application form No. 79 in the Appendix hereof;
b) The minutes of meeting, the decision of the GMS, Board of Members or the company’s owner on reorganization of the company;
c) The contract on principle in case of consolidation or merger according to form No. 80 in the Appendix hereof;
d) The reorganization that has been approved by the company’s GMS, Board of Members or owner according to form No. 81 in the Appendix hereof;
dd) Documents proving conformity with Clause 2, Clause 3 Article 206 of this Decree.
2. Within 30 days from the receipt of the satisfactory application as prescribed in Clause 1 of this Article, SSC shall decide whether to approve the reorganization, or reject the application and provide explanation.
3. Reorganization of securities companies and securities investment fund management companies shall comply with the Law on Enterprises. In case reorganization is combined with private placement of shares or public offering of shares, the securities company or securities investment fund management company shall comply with relevant regulations on offering.
4. After merger, the securities company or securities investment fund management company shall follow procedures for revising the license for establishment and securities operation specified in Article 174 of this Decree.
5. The securities company or securities investment fund management company that is established after consolidation or conversion shall apply for reissuance of the license for establishment and securities operation. The application for reissuance of the license for establishment and securities operation shall contain:
a) The application form No. 82 in the Appendix hereof;
b) The report on implementation of the reorganization plan, including the list of shareholders, contributing members of the company after reorganization according to form No. 68 in the Appendix hereof (if any);
c) Documents proving the right to own or use the premises; description of property according to Form No. 65 in the Appendix hereof;
d) The list of Director/General Director and securities practitioners at the headquarters and in the network according to form No. 66 in the Appendix hereof, personal information sheets of the General Director/Director and branch managers according to Form No. 67 in the Appendix hereof, judicial records of the General Director/Director and branch managers which must be issued within 06 months before the application is submitted;
dd) Confirmation of the increase in capital (if any) by the bank where the escrow account is opened or the equity report audited by an accredited audit organization;
e) The draft charter of the company after conversion or consolidation;
g) The original copy of the license for securities operation of the reorganized company.
6. SSC shall carry out an inspection at the premises of the company in case of relocation of the headquarters after consolidation or conversion or there are issues about the premises of the company that need clarifying.
7. Within 30 days from day on which the satisfactory application prescribed in Clause 5 of this Article is received and the inspection result is available, SSC shall decide whether to issue the license for establishment and securities operation, or reject the application and provide explanation.
8. The branches, transaction offices, representative offices of the new securities company or securities investment fund management company that is established after reorganization shall have the decisions on their establishment revised in accordance with Article 174, 197, 205 of this Decree or have to be shutdown according to Article 194, 196, 205 of this Decree.
Article 208. Conditions for suspension of securities companies, securities investment fund management companies, branches in Vietnam of foreign securities companies and fund management companies
1. The suspension of securities companies, securities investment fund management companies, branches in Vietnam of foreign securities companies and fund management companies must not affect the interests of their clients (if any).
2. The suspension duration must not exceed 90 days. If the suspension lasts longer than 90 days, SSC will receive the license for establishment and securities operation and relevant establishment decisions.
3. There must be a plan for suspension and settlement of effective contracts with the clients according to form No. 84 in the Appendix hereof. This plan must be approved by a competent authority.
Article 209. Procedures for suspension of securities companies, securities investment fund management companies, branches in Vietnam of foreign securities companies and fund management companies
1. The application for approval for suspension shall include:
a) The application form No. 83 in the Appendix hereof;
b) The decision on suspension issued by a competent authority;
c) The plan for settlement of effective contracts according to form No. 84 in the Appendix hereof; records on finalization of effective contracts with trustors or documents confirming that the fund management company has transferred the rights and responsibility for management of trust assets to the substitute fund management company.
2. Within 07 working days from the receipt of the satisfactory application as prescribed in Clause 1 of this Article, SSC shall decide whether to issue a decision to approve the suspension, or reject the application and provide explanation.
3. The securities company or Vietnamese branch of the foreign securities company shall report to SSC within 24 hours after resumption of operation of the headquarters, branch or transaction office.
4. The company or branch shall submit a report and relevant documents proving conformity with Clause 1 Article 85 of the Law on Securities to SSC before its operation is resumed.
Article 210. Documentation and procedures for revocation of the license for establishment and securities operation and settlement of assets of clients of securities companies and Vietnamese branches of foreign securities companies
1. Documentation and procedures for revocation of the license for establishment and securities operation in case the securities company or Vietnamese branch of a foreign securities company fails to start operating within 12 months from the day on which the license if issued or all securities operations are terminated according to Clause 2 Article 94 of the Law on Securities:
a) Within 07 working days from the expiration of the period specified in Clause 1 Article 84 of the Law on Securities or from the day on which the securities company or Vietnamese branch of the foreign securities company terminates all securities operations as prescribed in Clause 2 Article 94 of the Law on Securities, SSC shall issue the decision to revoke the license for establishment and securities operation;
b) Securities companies and Vietnamese branches of foreign securities companies shall follow procedures for dissolution specified in the Law on Enterprises.
2. Documentation and procedures for revocation of the license for establishment and securities operation in case the securities company or Vietnamese branch of a foreign securities company fails to resume operation upon expiration of the suspension period; in case the Vietnamese branch fails to rectify the causes for suspension specified in Point b and Point d Clause 1 Article 94 of the Law on Securities within 06 months from the suspension date; the securities company or Vietnamese branch of a foreign securities company fails to rectify the violations specified in Point a and Point c Clause 1 Article 94 of the Law on Securities within 60 days from the suspension date; the securities company is dissolved; the revocation of the license is requested in writing:
a) Within 07 working days from the day on which the securities company or Vietnamese branch of the foreign securities company issues the dissolution decision or submit the written request for revocation of the license for establishment and securities operation, or the license has to be revoked, SSC shall issue a decision to terminate all licensed operations of the company or branch in order to revoke the license for establishment and securities operation;
b) Within 24 hours from the receipt of SSC’s decision, the company or branch shall disclose information about this decision and shall terminate the licensed operations, stop signing new contracts that are relevant to its operations;
c) Within 07 working days from the day on which the securities company receives the decision from SSC, its Board of Directors, Board of Members shall convene the ad hoc GMS or Member Assembly to ratify the dissolution and plan the settlement of debts and persons with relevant interests and duties. Within 24 hours from the day on which the decision on dissolution is issued, the securities company shall disclose information about the dissolution and settlement of debts.
d) Within 15 days from the receipt of SSC’s decision, the company or branch shall send SSC the plan for settlement of proprietary trading accounts, effective contracts with its clients according to form No. 84 in the Appendix hereof. The securities company shall implement this plan within 45 days;
dd) In case the legal representative of the securities company has limited capacity or incapacitated, the other members of the Board of Directors, Board of Members or Board of Controllers (if the securities company has no other members of the Board of Directors, Board of Members) of the company shall appoint a member of the Board of Directors or Controller to complete the procedures for transferring assets to clients;
e) Within 05 working days from the day on which the plan mentioned in Point d of this Clause is completed, the company or branch shall send SSC the report on implementation of the plan according form No. 70 in the Appendix hereof, the decisions on revocation of membership of the Stock Exchange and VSDCC;
g) Within 07 working days from the day on which SSC receives the report mentioned in Point e of this Clause, SSC shall issue the decision to revoke the license for establishment and securities operation;
h) The securities company shall follow procedures for dissolution specified in the Law on Enterprises.
3. Procedures for revocation of the license for establishment and securities operation in case of bankruptcy:
a) Within 24 hours after the securities company receives the decision to file for bankruptcy or the decision to declare bankrupt under simplified procedures specified in Clause 1 Article 105 of the Law on Bankruptcy, the securities company shall disclose information about these decisions;
b) Within 05 working days from the date of information disclosure mentioned in Point a of this Clause, the securities company shall prepare a plan for settlement of proprietary trading accounts and contracts with clients according to Point d Clause 2 of this Article;
c) The securities company shall settle its clients’ accounts in following the procedures specified in Point d Clause 2 of this Article;
d) The securities company shall follow procedures for bankruptcy specified in the Law on Enterprises;
dd) Within 30 working days from the day on which SSC receives the decision to declare bankrupt, SSC shall issue the decision to revoke the license for establishment and securities operation,
4. Procedures for revocation of the license for establishment and securities operation in case of consolidation and merger specified in Point dd Clause 1 Article 95 of the Law on Securities:
SSC shall issue the decision to revoke the licenses for establishment and securities operation of the consolidating companies or the acquired company and reissue the license for establishment and securities operation to the consolidated company in accordance with Clause 5 Article 207 of this Decree, or revise the license for establishment and securities operation of the acquiring company in accordance with Clause 1 Article 174 of this Decree.
5. SSC shall disclose information about the revocation of the licenses for establishment and securities operation, request the business registration authorities to revoke relevant Certificates of Enterprise Registration of the securities companies and Vietnamese branches of securities companies.
Article 211. Procedures for dissolution, revocation of licenses for establishment and securities operation of securities investment fund management companies and Vietnamese branches of foreign fund management companies
1. A securities investment fund management company or Vietnamese branch of a foreign fund management company will be dissolved in the following cases:
a) The operating period specified in the company’s charter expires and is not extended;
b) The dissolution is voluntary under a decision of the GMS, Board of Members or the company’s owner or the foreign securities organization;
c) The license for establishment and securities operation is revoked according to Clause 1 Article 95 of the Law on Securities;
d) Other cases specified in the Law on Enterprises.
2. A fund management company will only be dissolved when all of its debts and liabilities are paid.
3. The application for approval for dissolution shall include:
a) The application from for approval for dissolution;
b) The minutes of meeting and resolution of the GMS, Board of Members or decision of the owner of the company or decision of the foreign securities organization to approve the dissolution, the plan for dissolution of the securities investment fund management company or Vietnamese branch of the foreign fund management company. The dissolution plan must include the plan for settlement of obligations under effective contracts, employment contracts and is enclosed with the list of prospective substitute fund management companies.
4. Within 20 days from the receipt of the satisfactory application as prescribed in Clause 3 of this Article, SSC shall decide whether to issue a document to approve the dissolution, or reject the application and provide explanation.
5. Procedures for liquidation and division of assets among shareholders/contributing members shall comply with regulations of law on dissolution of enterprises.
6. Within 10 days from the day on which the liquidation of assets is completed, all debts are paid and assets are distributed among shareholders/contributing members, the company’s legal representative shall submit the following documents to SSC:
a) A report on liquidation of the company’s assets, debt payment and fulfillment of other financial obligations to creditors, other persons with relevant interests and duties, including liabilities to the State, tax debts and social insurance debts. The report shall be enclosed with the list of creditors, paid debts; list of shareholders/contributing members, capital contribution ratios, amount, volume of assets;
b) A report confirmed by the depository banks, supervisory banks, representative board of the fund, Board of Directors of the investment company, trustors on finalization of contracts enclosed with contract finalization records confirmed by the depository banks and supervisory banks; documents about dissolution of the fund according to regulations of law on establishment and management of securities investment funds.
In case of transfer of rights, responsibilities and investment portfolios of the fund, investment company, trustors to the substitute securities investment fund management company, the report shall be enclosed with documents about the transfer of rights and obligations to the trustors to the substitute securities investment fund management company that are confirmed by the old and new supervisory banks and depository banks;
c) The list of employees and employees’ rights that have been settled;
d) A written confirmation from the tax authority that tax obligations have been fulfilled; written confirmation from a competent authority that the seal has been submitted; the original copy of the license for establishment and securities operation and the revised licenses.
7. Within 15 days from the receipt of the satisfactory application as prescribed in Clause 6 of this Article, SSC shall issue the decision to revoke the license for establishment and securities operation. In case the application is rejected, SSC shall issue a written rejection and provide explanation.
8. Members of the Board of Directors, Board of Members, Board of Controllers (if any), Director/General Director shall be responsible for the truthfulness and accuracy of the application for dissolution. In case the application contains inaccurate information or fraudulent documents, these individuals shall be jointly responsible for payment of outstanding debts and financial obligations originating from unsettled interests of the employees, take legal responsibility for the consequences that occur within 03 years from the day on which the application is submitted to SSC.
9. Procedures for revocation of the license for establishment and securities operation in the cases specified in Points a, b, c, d, Clause 1 Article 95 of the Law on Securities:
a) Within 30 days from the date of occurrence of the events that leads to mandatory revocation of the license for establishment and securities operation, SSC shall issue the decision to terminate all licensed operations of the securities investment fund management company or Vietnamese branch of the foreign fund management company in order to initiate procedures for revocation of the license for establishment and securities operation;
b) From the effective date of the decision on termination, the company or branch shall immediately implement Clause 3 Article 95 of the Law on Securities; must not sign, renew business contracts or any contracts that are relevant to the company’s business operation, except contracts serving its shutdown; stop providing transaction, management of assets, securities investment advisory services for clients and partners; hand over responsibility for management and trust assets to the substitute securities investment fund as requested by the clients, Investor Assembly and relevant regulations of law;
c) Within 15 days from the date of shutdown, the company or branch shall submit a report to SSC which must bear confirmation by the depository banks and supervisory banks of investment portfolio of each trustor, fund and investment company;
d) Within 45 working days from the date of shutdown, the company or branch shall: notify and survey the trustors, Investor Assembly, GMS of the investment company about settlement of investment portfolio accounts (close or transfer); transfer the balance and securities to the trustors that open transaction accounts, trustors, Investor Assembly of the fund, the GMS of the investment company; finalize contracts, hand over responsibility to the substitute company, the consolidated company or the acquiring company; hold meetings of the GMS or Board of Members, seek opinions of the company’s owner about the company’s dissolution or bankruptcy plan;
dd) Within 60 working days from the date of shutdown, the company or branch shall submit a report to SSC about settlement and transfer of all asset management rights and obligations to the substitute fund management company together with contract finalization records; or the 3-party contract for transfer of investment portfolio management rights and obligations to the substitute company (signed by the trustors and the companies); the plan for settlement of assets in dispute (if any) that occur from licensed securities operations;
e) Within 06 working days from the receipt of the report mentioned in Point dd, SSC shall send a document requesting the company or branch and relevant parties to initiate the dissolution or bankruptcy procedures specified in Article 96 of the Law on Securities. In case of dissolution, the procedures specified in Clauses 5, 6, 7 and 8 of this Article shall apply.
10. Procedures for revocation of the license for establishment and securities operation in case of consolidation, full division, partial division, acquisition and bankruptcy specified in Point dd Clause 1 Article 95 of the Law on Securities:
a) Within 07 working days from the day on which the competent authority’s decision on bankruptcy is received, the legal representative of the securities investment fund management company or the manager of the Vietnamese branch of the foreign fund management company shall send the original copy of the license for establishment and securities operation and all documents that are relevant to the bankruptcy to SSC. Within 30 days from the receipt of adequate and satisfactory documents, SSC shall issue the decision on revocation of the license for establishment and securities operation;
b) SSC shall issue the decision on revocation of the license for establishment and securities operation of the consolidating/divided/acquired company together with issuance of the license for establishment and securities operation to the fund management company that is established after the division/consolidation/acquisition.
Article 212. Documentation and procedures for revocation of the certificate of registration of Vietnamese representative offices of foreign securities companies and foreign fund management companies
1. The Vietnamese representative office of a foreign securities company or foreign fund management company shall have its certificate of representative office registration revoked in the following cases:
a) The revocation is requested by the foreign company;
b) The foreign company or the representative office violates Vietnamese’s regulations of law on foreign exchange management, internal transactions, market manipulations and other transactions that are banned by Vietnam’s securities laws; fail to fulfill tax obligations and other financial obligations to Vietnam’s government;
c) The application for issuance of the certificate of representative office registration contains incorrect information or omits important information;
d) The representative office operates against the certificate of representative office registration or other regulations of law on representative office operation;
dd) The representative office fails to submit reports at the request of SSC;
e) The foreign company is shut down, bankrupt or dissolved; the foreign company is divided, acquired or consolidated and the new company that is established after the division, acquisition or consolidation wishes to shut down the Vietnamese representative office;
g) The representative office fails to start operating within 12 months from the issuance date of the certificate of representative office registration.
2. In case a representative office is shut down as prescribed in Point a Clause 1 of this Article, at least 30 days before the date of shutdown, the foreign company shall submit the application for shutdown of representative office to SSC. The application shall contain:
a) The notification of the shutdown of the representative office;
b) The shutdown plan which includes: procedures for liquidation of assets, fulfillment of obligations of the representative office; method, time limit and plan for payment of debts, recovery of assets, settlement of duties and interests of relevant organizations and individuals; plan for transfer of money and assets of the representative office back to the home country;
c) The decision of a competent authority of the foreign company on shutdown of the representative office.
3. Within 07 working days from the receipt of the satisfactory application as prescribed in Clause 2 of this Article or from the date of occurrence of the event that leads to mandatory revocation of the certificate of representative office registration specified in Points b, c, d, dd, e, g Clause 1 of this Article, SSC shall issue the decision on shutdown of the representative office.
4. After receiving the decision mentioned in Clause 3 of this Article, the representative office shall follow the procedures below:
a) Disclose information on information disclosure media of SSC and 01 online newspaper or 03 consecutive issues of a newspaper about the shutdown;
b) Finalize the premises lease contract, employment contracts and other transactions (if any);
c) Fulfill tax obligations and financial obligations to the State in accordance with applicable laws;
d) Pay all debts and obligations to relevant organizations and individuals in Vietnam; fulfill all obligations to relevant organizations and individuals.
5. From the day on which the procedures specified in Clause 4 of this Article are completed, the foreign company shall submit the following documents to SSC:
a) Relevant documents proving that the foreign company has completed all procedures for liquidation, fulfilled all obligations to relevant organizations and individuals as prescribed in Clause 4 of this Article and relevant regulations of law of Vietnam;
b) The original copy of the certificate of representative office registration.
6. Within 07 working days from the receipt of adequate and valid documents specified in Clause 5 of this Article, SSC shall issue the decision to revoke the certificate of representative office registration.
7. After receiving SSC’s decision to revoke the certificate of representative office registration, the foreign company may transfer the remaining assets of the representative office (if any) to the foreign country in accordance with applicable laws.
Section 4. SECURITIES PRACTICE
Article 213. Documentation and procedures for issuance of the securities practicing certificate
1. The securities brokerage certificate will be issued to an individual who:
a) Satisfies the conditions specified in Clause 2 Article 97 of the Law on Securities; and
b) Has securities-related qualifications, including: certificate of basic training in securities and securities market, certificate of training in securities and securities market laws, certificate of training in securities analysis and investment, certificate of training in securities brokerage and securities investment counseling or equivalent certificates.
2. The financial analysis certificate will be issued to an individual who:
a) Satisfies the conditions specified in Clause 1 of this Article; and
b) Has the following qualifications: certificate of training in financial counseling and securities underwriting, certificate of training in financial statement analysis or equivalent certificates.
3. The fund management certificate will be issued to an individual who:
a) Satisfies the conditions specified in Clause 2 of this Article; and
b) Has certificates of training in fund and asset management; and
c) Has at least 03 years’ experience of working in sales, investment, finance, accounting departments of enterprises, organization of finance-, banking-, insurance-, securities-, audit-related activities or has a lawful securities practicing certificate issued overseas;
4. An application for the securities practicing certificate shall contain:
a) The application form No. 85 in the Appendix hereof;
b) The applicant’s personal information sheet according to Form No. 67 in the Appendix which must be prepared within the last 06 months before the application is received by SSC;
c) The judicial record issued by a competent authority within the last 06 months before the application is received by SSC;
d) The applicant’s bachelor’s degree, master’s degree or doctoral degree;
dd) A lawful securities practicing certificate issued overseas or equivalent documents proving that the applicant is lawfully practicing securities in a foreign country; qualifications in securities or equivalent certificates;
e) 02 4x6 cm photos that are taken within the last 06 months before the application is received by SSC;
g) In case of applying for the fund management certificate, the application shall include a document certifying the seniority and position of the applicant issued by the applicant’s current workplace or former workplaces.
5. The application for the securities practicing certificate will not be returned, even if it is rejected.
6. Within 07 working days from the receipt of the satisfactory application, SSC shall issue the securities practicing certificate and inform the applicant of the fee payable. In case the application is rejected, SSC shall issue a written rejection and provide explanation.
7. If the certificate holder fails to pay the fee or receive the certificate within 01 year from the day on which the fee is notified by SSC, SSC will issue a decision to invalidate the certificate issued.
8. The Ministry of Finance shall specify the fees for issuance, reissuance of securities practicing certificates; organization of examinations for securities practicing certificates according to Point d Clause 2 Article 97 of the Law on Securities, qualifications and equivalent certificates specified in Point b Clause 1 and Point b Clause 2 of this Article.
Article 214. Reissuance of the securities practicing certificate
1. The securities practicing certificate will be reissued in the following cases:
a) The certificate is revoked according to Point a or Point c Clause 3 Article 97 of the Law on Securities; is damaged or lost;
b) The applicant’s personal information on the certificate is changed (ID number, passport number, nationality, full name, date of birth).
2. An application for reissuance of the securities practicing certificate shall contain:
a) In case the certificate is revoked according to Point a or Point c Clause 3 Article 97 of the Law on Securities, the documents specified in Clause 4 Article 213 of this Decree;
b) In case the certificate is lost or damaged or the applicant’s personal information on the certificate is changed, the application form No. 85 in the Appendix hereof, the unexpired ID card or passport; 02 4x6 cm photos taken within 06 months before the application is received by SSC; the securities practicing certificate issued by SSC unless it is lost.
3. Procedures for reissuance of the securities practicing certificate shall comply with Clause 6 Article 213 of this Decree.
Article 215. Revocation of the securities practicing certificate
1. The securities practicing certificate will be revoked in the cases specified in c Clause 3 Article 97 of the Law on Securities.
2. Within 30 days from the day on which SSC issues the decision to revoke the securities practicing certificate and publish information about the revocation on its website, the certificate holder shall return the certificate to SSC.
Article 216. Management, supervision of securities practicing certificate holders and their employers
1. SSC shall manage and supervise securities practicing certificate holders as prescribed by law.
2. Securities practice principles:
a) A securities brokerage certificate holder may provide securities brokerage and securities investment advisory services;
b) A financial analysis certificate holder may provide securities brokerage and securities investment advisory services, proprietary trading, securities underwriting;
c) A fund management certificate holder may provide securities brokerage and securities investment advisory services, proprietary trading, securities underwriting, securities investment portfolio management, securities investment fund management;
d) A securities practicing certificate is only valid when its holder is working at a securities company, securities investment fund management company, Vietnamese branch of a foreign securities company or foreign fund management company, or investment company and his/her employment has been notified by the company to SSC;
dd) A person who holds 01 of the 03 securities practicing certificates mentioned in Points a, b, c of this Clause and has certificates of training in derivatives and derivative market may operate within the derivative-related certificates at a securities company or securities investment fund management company;
e) A securities practicing certificate holder may only work at 01 securities-related department at a time.
3. Every securities practicing certificate holder shall submit a report to SSC according to Form No. 86 in the Appendix hereof within 05 working days from the day on which the employment contract with the securities company, securities investment fund management company, Vietnamese branch of the foreign securities company or foreign fund management company is concluded or terminated, or the day on which a securities transaction account is opened.
4. The securities practicing certificate holder (hereinafter referred to as “securities practitioner”) shall notify SSC if the certificate is lost on information thereon is changed according to Form No. 86 in the Appendix hereof.
5. Responsibilities of employers of securities practitioners and their legal representatives
a) Assign securities practitioners according to their securities practicing certificates;
b) Supervise securities practitioners complying with securities laws;
c) Within 02 working days from the day on which the employment contract with a is concluded or terminated, or the securities practitioner is found to act against regulations of law on securities and the securities market, his/her employer shall send SSC a report according to form No. 87 in the Appendix hereof together with his/her employment contract or employment decision (in case of employment), the decision on employment contract termination (in case of resignation) or the violation record (in case of violations);
d) Before January 20 every year, employers of securities practitioners shall submit reports on employment of their securities practitioners in the previous year according to form No. 87 in the Appendix hereof.
SECURITIES INVESTMENT FUNDS, INVESTMENT COMPANIES
Article 217. Names of securities investment funds and investment companies
The Vietnamese name of a securities investment fund or investment company shall comply with enterprise laws and have at least the following two elements:
1. “Quỹ đầu tư” for closed-end funds, open-end funds, private funds; “ quỹ đầu tư bất động sản” for real estate investment funds; “ETF” for exchange traded funds; “investment JSC” for investment companies.
2. Proper name: suitable for the investment targets and strategies of the fund. For ETFs, the proper name must include the abbreviated name of the securities investment fund management company and the benchmark indexes.
Article 218. Changes subject to approval by SSC
The securities investment fund shall obtain SSC’s approval before making the following changes:
1. Increase, decrease in charter capital of the private fund; increase in charter capital of the closed-end fund or real estate investment fund.
2. Change in the fund’s operating period.
3. Change of the fund’s depository bank, supervisory bank.
4. Change of the name of the fund or securities investment fund management company.
Article 219. Conditions for operating as a public fund certificate distribution agent
1. An organization that has at least 01 business location for distribution of fund certificates. Fund certificates are only distributed at the registered locations.
2. Each location has at least 02 employees who have securities practicing certificates or foreign securities practicing certificates and the certificate of basic training in securities and securities market of Vietnam, or the following securities-related qualifications: certificate of basic training in securities and securities market laws, securities analysis and investment, securities brokerage and securities investment counseling.
3. The premises and equipment are adequate for fund certificate distribution.
4. There are professional processes for distribution of fund certificates and code of professional ethics applied to the agent’s employees.
Article 220. Documentation and procedures for issuance of the certificate of registration of public fund certificate distribution agent
1. An application for the certificate of registration of fund certificate distribution agent shall include:
a) The application form No. 88 in the Appendix hereof;
b) The authorization form No. 89 in the Appendix hereof;
c) The Certificate of Enterprise Registration, establishment and operation license (if any) of the applying organization and the distribution locations;
d) The description of facilities and personnel at distribution locations according to Form No. 90 and personal information sheets of the distribution agent’s employees according to Form No. 91 in the Appendix hereof; foreign securities practicing certificates of the employees (if any);
dd) The decision of the competent authority on promulgation of professional processes, including: information verification, identification of investors, distribution of fund certificates, regulations on prevention of late transactions; code of professional ethics for the distribution agent’s employees;
e) The written approval granted by a relevant authority for operation of the fund certificate distribution agent (if any).
2. When a securities investment fund management company distributes fund certificates, it shall have adequate personnel and professional processes for fund certificate distribution.
3. a) Within 10 days from the receipt of the satisfactory application, SSC shall issue the certificate of registration of fund certificate distribution agent. In case the application is rejected, SSC shall issue a written rejection and provide explanation.
4. The Minister of Finance shall provide guidance on operation of fund certificate distribution agents.
Article 221. Revocation of the certificate of registration of fund certificate distribution agent
1. The certificate shall be revoked in the following cases:
a) Voluntary termination of fund certificate distribution;
b) The Certificate of Enterprise Registration, establishment and operation license is revoked;
c) The fulfillment of conditions for fund certificate distribution is not maintained or regulations on fund certificate distribution of the Ministry of Finance are violated during the agent’s operation.
2. An application for termination of fund certificate distribution shall contain:
a) The written request for permission for termination of fund certificate distribution;
b) The original copy of the certificate of registration of fund certificate distribution agent;
c) The report on termination of fund certificate distribution at all locations; records on finalization of fund certificate accounts of clients of the agent or records on transfer of clients to substitute agents (if any).
3. Within 10 days from the receipt of the satisfactory application, SSC shall issue the decision to revoke the certificate of registration of fund certificate distribution agent. In case the application is rejected, SSC shall issue a written rejection and provide explanation.
Article 222. Conditions for establishment of a private fund
1. The conditions specified in Clause 2 Article 113 of the Law on Securities are satisfied.
2. The securities investment fund management company has at least 02 executives who have fund management certificates; is not facing warning, put under control, special control or suspension; has implemented all decisions on administrative penalties for violations against securities laws.
Article 223. Application for registration of a private fund
1. The application form No. 92 in the Appendix hereof.
2. The fund's charter according to the model charter provided by the Ministry of Finance.
3. The asset depositing contract with the depository bank.
4. Capital contribution contracts with contributing members which specify the names of the fund, securities investment fund management company, depository bank, contributed capital; the decision of a competent authority on contribution of capital to the fund.
5. The list of professional investors that contribute capital according to Form No. 93 in the Appendix hereof; the appraisal report of the securities investment fund management company or authorized securities company on identification of professional investors.
6. The written confirmation of contributed capital of the fund issued by the depository bank.
7. The list and information disclosure sheets of the fund’s executives according to form No. 91 and 101 in the Appendix hereof.
Article 224. Conditions for increase, decrease in charter capital of a private fund
1. The fund’s charter includes regulations on increase, decrease in charter capital.
2. The Investor Assembly of the fund approves the increase/decrease in charter capital of the fund, the plan for increase/decrease in the charter capital, and the revised charter of the fund.
3. The fund is still conformable with Article 113 of the Law on Securities after increase/decrease.
4. In case of increase in charter capital, the securities investment fund management company must comply with Clause 2 Article 222 of this Decree. Capital shall be contributed in the form of money or securities that are listed/registered at Stock Exchanges. Capital contribution with securities shall ensure that:
a) The contributing investors are not restricted from transferring intended assets to the funds; the assets are not being pledged, deposited, put up as collateral, frozen or used in other collateral transactions as prescribed by civil laws;
b) The contributed assets are conformable with the fund’s charter, investment targets and investment policies; are not on the fund’s investment portfolio but are going to be liquidated or withdrawn; are not securities that are terminated or suspended from transaction, delisted, or securities of issuers that are undergoing liquidation, dissolution or bankruptcy;
c) Capital contribution with assets must be approved by all investors of the fund and is only completed after the lawful ownership of these assets has been transferred to the fund. The transfer of ownership shall be carried out in accordance with instructions of VSDCC;
d) The contributed assets shall be valuated in accordance with the fund's charter and relevant laws. Values of assets transferred to the fund shall be determined on the basis of their closing prices on the date of completion of ownership transfer at VSDCC.
5. In case of decrease in charter capital, assets distributed among investors are money or other assets. The securities investment fund management company, the depository bank shall distribute assets fairly according to the ratios of the investors’ contribution to the fund.
Article 225. Application for increase/decrease in charter capital of a private fund
1. The application form No. 94 in the Appendix hereof.
2. The minutes of meeting and resolution of the Investor Assembly on approval for the increase/decrease in charter capital of the fund and the revised charter of the fund.
3. The revised charter of the fund.
4. The revised depository contract (if any).
5. The list of professional investors that contribute capital before and after the increase/decrease according to Form No. 93 in the Appendix hereof; the appraisal report of the securities investment fund management company or authorized securities company on identification of professional investors that are new capital contributors (if any).
6. The depository bank’s written confirmation of additional capital and list of additional assets in case of increase in charter capital.
7. The depository bank’s written confirmation of distribution of assets among investors and the list of assets distributed among investors in case of increase in charter capital.
8. Capital contribution contracts with new contributing members (if any) enclosed with the decision of the competent authority of the organization on contribution of capital to the fund.
Article 226. Application for change in operating period of a private fund
1. Conditions for change in the fund’s operating period:
a) The reduction or extension of the operating period is approved by the Investor Assembly of the fund;
b) The latest net asset value of the fund is not smaller than 50 billion VND.
2. An application for change in operating period of a private fund shall contain:
a) The application form No. 94 in the Appendix hereof;
b) The minutes of meeting and resolution of the fund’ Investor Assembly on approval for reduction or extension of the fund’s operating period;
c) The list of professional investors of the fund according to form No. 93 in the Appendix hereof;
d) The detailed investment portfolios and report on the fund’s latest net asset value (confirmed by the depository bank);
dd) In case the fund’s operating period is extended, the contract with the depository bank for extension of depository service provision period.
3. The application shall be submitted to SSC at least 30 days before the expiration date of the fund’s operating period. Otherwise, the application will be rejected.
Article 227. Application for change of depository bank/supervisory bank
1. The application form No. 95 in the Appendix hereof and the written commitment of the depository bank/supervisory bank to fully transfer rights and obligations to the fund’s assets to the substitute bank (if any).
2. The minutes of meeting and resolution of the Investor Assembly on approval of the change of the depository bank/supervisory bank (if any); the plan for transfer of assets from the old depository bank/supervisory bank (if any) to the substitute depository bank/supervisory bank (if any) and the revised charter of the fund.
3. The depository contract with the substitute depository bank, supervision contract with the substitute supervisory bank (if any).
4. The revised charter, prospectus, summary prospectus of the fund (if any).
5. The plan for transfer of all assets, rights and obligations to the substitute depository bank or supervisory bank (if any).
Article 228. Application for change of the name of a fund or securities investment fund management company
1. The application form No. 94 in the Appendix hereof.
2. The minutes of meeting and resolution of the Investor Assembly on approval of the change; the plan for transfer of rights and obligations to the substitute securities investment fund management company and the revised charter of the fund.
3. The written commitment of the securities investment fund management company to transfer rights and obligations to the substitute company, the list and personal information sheets of the fund’s executives of the substitute company according to form No. 91 and 101 in the Appendix hereof in case of change of the securities investment fund management company.
4. The revised charter of the fund.
Article 229. Consolidation, acquisition of private funds
1. A private fund may be consolidated or merged with another private fund under the resolution of Investor Assemblies of the consolidating funds, or the acquired fund and acquiring fund. The private fund that is established after consolidation or merger shall satisfy the conditions specified in Clause 2 Article 113 of the Law on Securities.
2. The application for approval for consolidation/merger of funds shall include:
a) The application form;
b) The minutes of meeting and resolution of Investor Assemblies on approval for the consolidation/merger, the consolidation/merger contract and the charter of the consolidated/acquiring fund;
c) The consolidation/merger contract according to form No. 96 in the Appendix hereof;
d) The charter of the consolidated/acquiring fund.
3. In case the consolidation/merger of funds is combined offering of fund certificates, the funds shall comply with relevant regulations on offering.
4. The consolidated fund shall apply for revision of the certificate of fund registration. The acquiring fund shall apply for reissuance of the certificate of fund registration.
5. The application for reissuance/revision of the certificate of fund registration shall contain:
a) The application form No. 94 in the Appendix hereof;
b) The report on implementation of the consolidation/merger plan, results of transfer (if any), offering of fund certificates (if any);
c) The contract for depositing of assets of the consolidated/acquiring fund (if any);
d) The list of professional investors of the consolidated/acquiring fund according to form No. 93 in the Appendix hereof;
dd) The original copy of the certificates of fund registration of the consolidating/acquired funds;
e) The list of assets of the consolidated/acquiring fund (if any).
Article 230. Procedures for issuing, reissuing, revising the certificate of fund registration
1. a) Within 15 days from the receipt of the satisfactory application, SSC shall issue the certificate of fund registration. In case the application is rejected, SSC shall issue a written rejection and provide explanation. The fund’s capital shall only be disbursed after the certificate of fund registration is issued by SSC.
2. Within 10 days from the receipt of the satisfactory documents about the changes specified in Article 218 of this Decree, SSC shall revise the certificate of fund registration. In case the application is rejected, SSC shall issue a written rejection and provide explanation. The fund’s additional capital shall only be disbursed after the revised certificate of fund registration is issued by SSC.
3. Procedures for consolidation/merger of funds:
a) Within 30 days from the receipt of the satisfactory application for approval for consolidation/merger of funds, SSC shall issue an approval decision. In case the application is rejected, SSC shall issue a written rejection and provide explanation;
b) Within 05 working days from the day on which the consolidation/merger is completed, the securities investment fund management company shall submit the application for reissuance or revision of the certificate of fund registration. Within 30 days from receipt of the satisfactory application, SSC shall reissue or revise the certificate of fund registration. In case the application is rejected, SSC shall issue a written rejection and provide explanation.
Article 231. Application for dissolution of a private fund
1. The application form No. 97 in the Appendix hereof.
2. The minutes of meeting and resolution of the Investor Assembly on approval for the dissolution of the fund and the dissolution plan.
3. The dissolution plan according to form No. 95 in the Appendix hereof.
4. The written commitment signed by the legal representative of the securities investment fund management company (if any), the depository bank, supervisory bank (if any) to complete procedures for liquidation of assets serving the dissolution of the fund.
Article 232. Procedures for dissolution of a private fund
1. c) Within 15 days from the day on which the Investor Assembly approves the dissolution of the fund, the securities investment fund management company or the depository bank, supervisory bank (if any) and the representative board of the fund (in case there is no securities investment fund management company) shall submit the application for dissolution to SSC.
2. Within 15 days from the receipt of the satisfactory application, SSC shall issue a document to approve the dissolution under the plan approved the Investor Assembly of the fund. In case the application is rejected, SSC shall issue a written response and provide explanation.
3. Within 05 working days from the day on which the dissolution is completed, the securities investment fund management company (or the depository bank, supervisory bank (if any) in case there is no securities investment fund management company) shall disclose information about the completion of liquidation, distribution and dissolution of the fund, and submit the following documents to SSC:
a) The report form No. 98 in the Appendix hereof;
b) The report on appraisal of liquidation result prepared by an audit organization appointed by the Investor Assembly or representative board of the fund (if any);
c) The original copy of the certificates of fund registration;
d) Documents of the depository bank, supervisory bank (if any) and securities investment fund management company specifying the money and assets distributed to each investor and confirmations of the investors that they have fully received the money and assets under the dissolution plan approved by the Investor Assembly or confirmation of VSDCC that securities have been distributed among investors as requested by the securities investment fund management company, depository bank, supervisory bank (if any) and investors; confirmation of the shareholder register management organization, the issuing organization and the enterprise receiving capital from the fund that ownership of shares/stakes has been transferred to each investor as requested by the securities investment fund management company.
4. Within 15 days from the receipt of adequate and satisfactory documents, SSC shall issue the decision to revoke the certificate of registration of fund.
Article 233. Public offering of closed-end fund certificates
1. Conditions for IPO of fund certificates:
a) The conditions specified in Clause 5 Article 15 of the Law on Securities are satisfied;
b) The securities investment fund management company has at least 02 executives who have fund management certificates; is not facing warning, put under control, special control or suspension; has implemented all decisions on administrative penalties for violations against securities laws.
2. Conditions offering fund certificates to increase capital of the fund:
a) The conditions specified in Clause 1, Clause 2 Article 112 of the Law on Securities are satisfied;
b) Regulations of Point b Clause 1 of this Article are complied with.
3. The plan for initial offering of fund certificates and offering of fund certificates for capital increase shall contain the mandatory information specified in form No. 99 in the Appendix hereof.
4. Within 30 days from the effective date of the certificate of fund registration or the revised certificate of fund registration, the securities investment fund management company shall list the fund certificates or additional fund certificates at the Stock Exchange as per regulations.
Article 234. Application for public offering of closed-end fund certificates
1. The application for IPO of fund certificates shall contain:
a) The application form No. 100 in the Appendix hereof;
b) The draft charter of the fund according to regulations of the Ministry of Finance;
c) The prospectus and summary prospectus according to regulations of the Ministry of Finance;
d) The supervision contract in principle between the supervisory bank and the securities investment fund management company;
dd) The contract in principle for distribution of fund certificates between the securities investment fund management company and distribution agents enclosed with the certificates of registration of fund certificate distribution agent, the report on assessment of facilities at distribution locations by the securities investment fund management company, the contracts in principle with relevant service providers (if any);
a) The list and information disclosure sheets of the fund’s executives according to form No. 91 and 101 in the Appendix hereof.
g) In case the fund does not hold the first Investor Assembly, the securities investment fund management company shall include documents about the investors’ opinions on members of the representative board of the fund, personal information sheets, judicial records and other contents;
h) the issuance underwriting agreement (if any), advertising documents, introduction of the fund (if any).
2. An application for offering fund certificates to increase capital shall contain:
a) The documents specified in Point a, Point b and Point c Clause 1 of this Article;
b) The resolution of the Investor Assembly on approval of the offering of call options for fund certificates to increase capital of the fund and the plan for offering of fund certificates;
c) The minutes of meeting and resolution of the representative board of the fund on approval for the application for offering, offering time, offer price, criteria for identification of eligible buyers in case the issued call options for the fund certificates are not completely distributed;
d) The latest annual financial statement according to Article 20 of the Law on Securities.
Article 235. Application for registration of a closed-end fund
1. The application form No. 92 in the Appendix hereof.
2. The offering result report according to form No. 102 in the Appendix hereof and the confirmation of the supervisory bank that the revenue from the offering has been frozen, the list of fund certificate buyers.
3. The document that contains investors’ responses to enquiries (if any).
Article 236. Application for revision of the certificate of closed-end fund registration due to capital increase
1. The application form No. 94 in the Appendix hereof.
2. a) The offering result report form No. 102 in the Appendix hereof.
3. The supervisory bank’s confirmation of the capital raised by the offering and the list of fund certificate buyers.
Article 237. Application for change of operating period, supervisory bank, name, management company of a closed-end fund
1. The documents specified in Article 226, Article 227 and Article 228 of this Decree.
2. In case the fund’s operating period is extended, the contract with the supervisory bank for extension of depository and supervision service provision period, detailed investment portfolios, and latest net asset value of the fund (confirmed by the supervisory bank).
Article 238. Consolidation, acquisition of closed-end funds
1. A closed-end fund may be consolidated or merged with another closed-end fund under a decision of its Investor Assemblies. The fund that is established after consolidation or merger shall satisfy the conditions specified in Clause 1 Article 108 of the Law on Securities.
2. The application for approval for fund consolidation/merger shall contain the documents specified in Clause 2 and Clause 3 Article 229 of this Decree.
3. The consolidated fund shall apply for revision of the certificate of fund registration. The acquiring fund shall apply for reissuance of the certificate of fund registration.
4. The application for reissuance/revision of the certificate of fund registration shall contain:
a) The conditions specified in Points a, b, dd, e Clause 5 Article 229 of this Decree are satisfied;
b) The prospectus, summary prospectus of the consolidated/acquiring fund;
c) The asset supervision contract between the supervisory bank and the consolidated/acquiring fund and reports of the supervisory banks on assessment of the consolidation/merger plan, including: rules for determination of debts, assets and net asset value on the consolidation/merger date; rules for conversion and determination of conversion ratio; the plan and rules for transfer of assets between the funds; quantity of fund certificates to be circulated of the consolidated/acquiring fund;
d) The written approvals of the Stock Exchange and VSDCC for delisting, deregistration, release of fund certificates of the consolidating/acquired funds.
Article 239. Procedures for issuing, reissuing, revising the certificate of closed-end fund registration
1. The fund management company shall submit the application for public offering of fund certificates to SSC. Within 30 days from the receipt of the satisfactory application, SSC shall issue the certificate of registration of public offering of fund. In case the application is rejected, SSC shall issue a written rejection and provide explanation.
2. Within 10 days from the offering completion date, the fund management company shall submit the application for fund registration to SSC. Within 07 working days from the receipt of the satisfactory application, SSC shall issue the certificate of fund registration. In case the application is rejected, SSC shall issue a written rejection and provide explanation.
3. Within 10 days from the completion date of the follow-on offering, the fund management company shall submit the application for revision of the certificate of fund registration to SSC. Within 07 working days from the receipt of the satisfactory application, SSC shall issue the revised certificate of fund registration. In case the application is rejected, SSC shall issue a written rejection and provide explanation.
4. Procedures for making the changes specified in Article 218 of this Decree, consolidation and merger of closed-end funds shall comply with Clause 2 and Clause 3 Article 230 of this Decree.
Article 240. Dissolution of a closed-end fund
1. A closed-end fund will be dissolved in one of the following cases:
a) The cases specified in Clause 1 Article 104 of the Law on Securities;
b) The fund is delisted.
2. The application for dissolution shall include:
a) The documents specified in Article 231 of this Decree;
b) The delisting decision issued by the Stock Exchange (in case of delisting).
3. Procedures for dissolution shall comply with Article 232 of this Decree.
Article 241. Conditions and documentation for IPO of open-end fund certificates
1. The conditions for IPO of open-end fund certificates are the same as those specified in Clause 1 Article 233 of this Decree.
2. The application for IPO of open-end fund certificates shall contain:
a) The documents specified in Clause 1 Article 234 of this Decree;
b) The contracts with fund administration service providers and transfer agents (if any).
Article 242. Application for fund registration, change of supervisory bank, name, management company of an open-end fund
1. An app for fund registration shall contain the documents specified in Article 235 of this Decree.
2. An application for change of supervisory bank, name, management company shall contain the relevant documents specified in Article 227 and Article 228 of this Decree.
Article 243. Consolidation, acquisition of open-end funds
1. An open-end fund may be consolidated or merged with another open-end fund under a decision of its Investor Assemblies. The fund that is established after consolidation or merger shall satisfy the conditions specified in Clause 1 Article 108 of the Law on Securities.
2. The application for approval for open-end fund consolidation/merger shall contain the documents specified in Article 238 of this Decree.
Article 244. Full division, partial division of an open-end fund
1. Conditions for full/partial division of an open-end fund:
a) The full/partial division is approved by the Investor Assembly of the fund;
b) The funds that are established after the full/partial division shall satisfy the conditions specified in Clause 1 Article 108 of the Law on Securities;
c) The funds that are established after the full/partial division shall be supervised by supervisory banks.
2. The application for approval for full/partial division of an open-end fund shall include:
a) The application form for approval for full/partial division of the open-end fund;
b) The minutes of meeting and resolution of Investor Assemblies on approval for the full/partial division and the charters of the funds established after division;
c) The full/partial division plan according to form No. 95 in the Appendix hereof;
d) The charters of the funds established after division.
3. The funds established after division shall apply for reissuance or revision or their certificates of fund registration.
4. The application for reissuance/revision of the certificate of fund registration prepared by a fund established after division shall contain:
a) The application form No. 94 in the Appendix hereof;
b) The report on implementation of the full/partial division plan;
c) The report of the supervisory bank on assessment of the full/partial division of investment portfolios, transfer of ownership and assets among the funds established after division, the list of assets of the funds established after division;
d) The supervision contracts between the fund management company and the supervisory banks for supervision of the funds established after division;
dd) The prospectuses and summary prospectuses of the funds established after division;
e) The original certificate of fund registration of the fully divided fund.
Article 245. Procedures for issuing, reissuing, revising the certificate of open-end fund registration
1. The procedures for registration of offering and establishment of an open-end fund shall comply with Clause 1 and Clause 2 Article 239 of this Decree.
2. Procedures for change of supervisory bank, name, management company, consolidation, merger of open-end funds shall comply with Clause 2 and Clause 3 Article 230 of this Decree.
3. Procedures for full/partial division of an open-end fund:
a) Within 30 days from the receipt of the satisfactory application for approval for full/partial division of the fund, SSC shall issue an approval decision. In case the application is rejected, SSC shall issue a written rejection and provide explanation;
b) Within 05 working days from the day on which the full/partial is completed, the fund management company shall submit the application for reissuance or revision of the certificate of fund registration. Within 30 days from receipt of the satisfactory application, SSC shall reissue or revise the certificate of fund registration. In case the application is rejected, SSC shall issue a written rejection and provide explanation.
Article 246. Dissolution of open-end funds
Procedures for dissolution of open-end funds shall comply with Article 231 and Article 232 of this Decree.
Section 4. REAL ESTATE INVESTMENT FUNDS
Article 247. Real estate investment funds
1. A real estate investment fund shall be organized in the form of a closed-end fund or public investment company
2. In case the real estate investment fund is organized as a closed-end fund, the offering, establishment, capital increase and decrease, listing, change of operating period, name, fund management company, consolidation, merger, dissolution shall be carried out in accordance with Articles 233 to 240 of this Decree and regulations of this Section.
3. In case the real estate investment fund is organized as a public investment company, the offering, establishment, capital increase and decrease, listing, change of operating period, name, fund management company, consolidation, merger, dissolution shall be carried out in accordance with Articles 257 to 268 of this Decree and regulations of this Section.
Article 248. Conditions for public offering of real estate fund certificates
1. Investors are allowed to contribute capital in the form of real estate during the first offering and follow-on offering of the real estate investment fund. The contributed real estate shall satisfy the following conditions:
a) The conditions specified in the fund’s charter, investment targets and policies of the funds;
b) The real estate is lawfully owned by the investor, is not restricted from transferring; is not being pledged, deposited, put up as collateral, frozen or used in other collateral transactions as prescribed by civil laws;
c) The real estate is permitted for business operation according to regulations of law on real estate business;
d) The real estate is a finished construction work according to construction laws;
dd) In case the real estate is under construction, the real estate investment fund may only receive it as capital contribution if the following conditions are satisfied: there are contracts with prospective customers; the real estate is likely to be sold, used or leased out upon completion; the construction progress is on schedule on the contribution date; the total value of real estate projects in progress of the fund does not exceed 10% of the fund’s total assets; the real estate is not vacant land according to regulations of law on real estate business and the Land Law.
2. Conditions for IPO of fund certificates and follow-on offering of fund certificates by a real estate investment fund:
a) The conditions specified in Article 233 of this Decree are satisfied (if the real estate investment fund is organized as a closed-end fund) or Article 257 of this Decree (if the real estate investment fund is organized as a public investment company);
b) The fund management company has at least 02 employees who have valuators’ cards according to the Law on Prices.
Article 249. Application for public offering of real estate fund certificates
1. The application for IPO of real estate fund certificates shall contain:
a) The documents specified in Clause 1 Article 234 of this Decree are satisfied (if the real estate investment fund is organized as a closed-end fund) or Clause 1 Article 258 of this Decree (if the real estate investment fund is organized as a public investment company);
b) The list and information disclosure sheets of the fund’s valuators according to form No. 91 and 101 in the Appendix hereof and valuators’ cards;
c) The real estate valuation contract between the fund management company and the real estate valuation company according to the Law on Prices (if any);
d) The real estate management contract between the fund management company and the real estate management company (if any).
2. In case real estate is contributed as capital, the application for IPO of real estate fund certificates shall also include the following documents:
a) The list of investors who contribute real estate according to Form No. 103 in the Appendix hereof; the decision on contribution of assets to the real estate investment fund; the commitment to comply with limits on transfer of fund certificates of the competent authority of the contributing organization;
b) Documents about rights to ownership, rights to enjoyment of real estate of the contributing investors according to regulations of law on real estate business, housing and land;
c) The latest financial statement of the contributing organization according to Article 20 of the Law on Securities, or the report of the real estate management organization on the use of the contributed real estate in the latest year which is certified by an independent audit organization;
d) The real estate valuation certificates issued by 02 independent valuation enterprises;
dd) The questionnaire sent to investors that contribute real estate, the prices of contributed real estate.
3. An application for follow-on offering by the real estate investment fund shall contain the documents specified in Clause 2 Article 234 of this Decree are satisfied (if the real estate investment fund is organized as a closed-end fund) or Clause 2 Article 258 of this Decree (if the real estate investment fund is organized as a public investment company). In case there are investors that contribute real estate as capital, the following documents shall also be included:
a) The documents specified in Points a, b, c, d Clause 2 of this Article;
b) The minutes of meeting and resolution of the Investor Assembly, the representative board of the fund on approval for follow-on offering of fund certificates to increase capital of the fund by contributing real estate, including: the investors, contributed real estate, prices of contributed real estate;
c) The report on re-valuation of exiting real estate of the fund, report on net asset value confirmed by the supervisory bank on the date of submission of the application.
Section 5. EXCHANGE TRADED FUND (ETF)
Article 250. Benchmark indexes of ETFs
1. Benchmark indexes of an ETF shall satisfy the following conditions:
a) They are developed and managed by the Stock Exchange;
b) They are developed according to the component securities listed at the Stock Exchange;
c) There are specific and representative targets that reflect the characteristics of the market or the sector. The rules, management and maintenance of these indexes shall ensure that they reasonable reflect the overall fluctuations on the market or in the sector, fluctuations in prices of the component securities, changes in proportions of component securities and types of component securities;
d) The basket of component securities of each index shall be diverse and ensure that: there are at least 10 shares in the basket, the proportion of each share in the basket must not exceed 20% of the value of the index (for shares); there are at least 05 shares in the basket, the proportion of each share in the basket must not exceed 20% of the value of the index (for bonds), except government bonds, treasury bills, government-backed bonds and municipal bonds;
dd) Information about the benchmark indexes and their daily changes must be published daily on the website of the Stock Exchange and the media in accordance with regulations of law on disclosing information on the securities market.
2. The basket of component securities in swap transactions shall satisfy the following conditions:
a) The benchmark index is made up by at least 50% of its underlying securities;
b) The value of the component securities is not smaller than 95% of the value of the corresponding basket of the index.
Article 251. Conditions for becoming a founding member of a fund
1. Being a securities company is licensed for securities brokerage and proprietary trading, or depository bank.
2. In the last 12 years before the application for establishment of the ETF, the securities company is able to maintain a minimum liquidity ratio of 220% or a higher ratio imposed by the fund management company; the depository bank has a capital adequacy ratio that is conformable with banking laws.
3. The contract for establishment of an ETF has been concluded with the fund management company.
4. Other conditions (if any) in the contract are fulfilled.
Article 252. Conditions for IPO and listing of ETF certificates
1. Conditions for IPO of ETF certificates:
a) The conditions specified in Clause 1 Article 233 of this Decree are satisfied;
b) There are at least 02 founding members that satisfy the requirements specified in Article 251 of this Decree;
c) Each investor, funding member subscribes for at least 01 ETF creation unit; at least 10 ETF creation units must be subscribed, or a different number specified in the fund’s charter, as long as the charter capital of the fund is at least 50 billion VND.
2. The fund management company shall list the ETF certificates at the Stock Exchange within 30 days from the effective date of the certificate of ETF registration.
Article 253. Application for IPO of ETF certificates
1. The documents specified in Clause 1 Article 234 of this Decree.
2. The contract between the fund management company and the Stock Exchange for provision of benchmark indexes: the rules for development and management of indexes and documents describing the basket of their component securities, principles and methods for selection of securities in the basket, principles and methods for calculation of the indexes.
3. The fund establishment contracts between the fund management company and founding members enclosed with the establishment and operation license of the securities company or depository bank, the certificate of securities depository of the depository bank, the sheet of liquidity ratios and capital adequacy ratios of the securities company or the depository bank of the last 12 months before the application is submitted and other documents under the contract (if any).
Article 254. Application for establishment of an ETF
1. The capital contributed to establishment of an ETF by founding members and investors shall be component securities. Contribution of money is only permissible for payments of differences between the component securities in the basket and the issue price; payments for component securities the transfer of which by founding members and investors is restricted due to limited foreign ownership ratio; payment of dividends of the component securities.
2. All baskets of component securities of founding members and investors shall be frozen at VSDCC.
3. The application for establishment of an ETF shall contain:
a) The documents specified in Clause 1, Clause 3 Article 235 of this Decree;
b) The report on result of offering of fund certificates of the supervisory bank enclosed with the list of founding members and contributing investors according to form No. 102 in the Appendix hereof;
c) VSDCC’s confirmation of the frozen basket of component securities of each founding member and investor according to form No. 104 in the Appendix hereof.
Article 255. Procedures for issuing, reissuing, revising the certificate of ETF registration
1. The procedures for registration of offering and establishment of an ETF fund shall comply with Clause 1 and Clause 2 Article 239 of this Decree.
2. Documentation and procedures for change of supervisory bank, name, management company, consolidation, merger of ETF shall comply with Clause 2 Article 242, Article 243 and Clause 2 Article 245 of this Decree.
Article 256. Dissolution of an ETF
1. An ETF shall be dissolved in the following cases:
a) The cases specified in Clause 1 Article 104 of the Law on Securities;
b) The ETF is delisted, except voluntary delisting due to change in benchmark indexes.
2. Documentation and procedures for dissolution of ETFs shall comply with Article 246 of this Decree.
Section 6. INVESTMENT COMPANIES
Article 257. Conditions for initial offering and follow-on offering by public investment companies
1. Conditions for IPO of shares by a public investment company:
a) The total value of offered shares is at least 50 billion VND;
b) There is a plan for issuance and use of capital obtained from the offering;
c) The offering is supervised by a supervisory bank;
d) The publicly offered shares are listed at the Stock Exchange after the offering ends;
d) The securities investment fund management company has at least 02 executives of the investment company who have fund management certificates; is not facing warning, put under control, special control or suspension; has implemented all decisions on administrative penalties for violations against securities laws.
2. Conditions for follow-on offering by public investment companies:
a) The investment company’s charter has regulations on follow-on offering and there is a plan for follow-on offering which is approved by the GMS;
b) The company makes a profit in the year preceding the offering year and does not have accumulated loss when the offering is registered;
c) The securities investment fund management company fulfills the conditions specified in Point dd Clause 1 of this Article.
3. The plan for initial offering and follow-on offering of shares contains the mandatory information specified in form No. 99 in the Appendix hereof.
4. Within 30 days from the effective date of the establishment and operation license or the revised establishment and operation license of the public investment company, the securities investment fund management company shall list the shares of the public investment company at the Stock Exchange as per regulations.
Article 258. Documentation and procedures for initial offering and follow-on offering by public investment companies
1. The application for IPO of shares shall contain:
a) The application form No. 100 in the Appendix hereof;
b) The charter of the investment company according to regulations of the Ministry of Finance;
c) The prospectus and summary prospectus according to regulations of the Ministry of Finance;
d) The depository and supervision contract between the supervisory bank and the securities investment fund management company;
dd) The contract for distribution of shares between the securities investment fund management company and distribution agents enclosed with the certificates of registration of fund certificate distribution agent, the report on assessment of facilities at distribution locations by the securities investment fund management company, the contracts in principle with relevant service providers (if any);
e) The list of personnel and executives, personal information sheets according to Form No. 91 and Form No. 105 in the Appendix hereof enclosed with the judicial records of members of the Board of Directors, the Director/General Director that are issued within 06 months before the application is submitted;
g) In case the investment company does not plan to hold the first GMS, the securities investment fund management company shall include documents seeking opinions of investors about: the listing of shares at the Stock Exchange, composition of the Board of Directors, members of the Board of Directors and other issues;
h) The issuance underwriting agreement (if any), advertising documents, introduction of the fund (if any).
2. The application for follow-on offering by a public investment company shall contain:
a) The documents specified in Points a, b, c, h Clause 1 of this Article;
b) The GMS’s resolution to approve the follow-on offering, the plan for issuance and use of capital generated by the offering and the listing of shares at the Stock Exchange when the offering ends;
c) The resolution of the Board of Directors of the company on approval for the application for offering, issuance time, issue price, criteria for identification of eligible buyers in case the issued call options for the issued shares are not completely distributed;
d) The latest annual financial statement that is conformable with Article 20 of the Law on Securities and the company’s profit in which is a positive number without accumulated loss by the application date.
Article 259. Conditions for issuance of the establishment and operation license to a investment company
1. Capital:
a) Actual contributed charter capital shall be at least 50 billion. A public investment company shall authorize a securities investment fund management company to manage its capital. A private investment company may manage its own capital or authorize a securities investment fund management company to manage its capital;
b) All assets of the public investment company shall be deposited at the supervisory bank.
2. There are premises for securities investment operations. The public investment company or investment company may use the premises of the securities investment fund management company that is authorized to manage its capital as its headquarters.
3. Personnel:
a) The public investment company or investment company that authorizes a securities investment fund management company to manage its capital must not recruit personnel and Director/General Director, Deputy Director/Deputy General Director that are executives appointed by the securities investment fund management company.
b) A private investment company that manage its own capital shall have a Director/General Director who meets the requirements specified in Clause 5 Article 75 of the Law on Securities and at least 02 employees having the financial analysis certificate or fund management certificate.
4. Shareholders:
a) The public investment company shall have at least 100 shareholders that are not professional securities investors;
b) A private investment company may have up to 99 shareholders. Shareholders that are organizations shall contribute at least 03 billion VND. Shareholders that are individuals shall contribute at least 01 billion VND. In case of self-management, domestic shareholders shall be organizations that are licensed by securities, banking, insurance authorities or members of the Board of Directors, General Director/Director, Deputy Director/Deputy General Director of the company to be established.
5. At least two thirds of the members of the Board of Directors of the public investment company shall be independent from the securities investment fund management company, supervisory bank.
6. Conditions for contributing assets: shareholders may contribute securities that are being listed, registered, traded at Stock Exchanges in accordance with the charter of the private investment company, and:
a) The securities contributed shall be appropriate for the company’s investment targets and policies; not restricted from transfer, suspended or banned from transaction, or delisted; not being pledged, deposited, frozen or collateralized in other secured transactions as prescribed by law;
b) The contribution of securities must be approved by all shareholders and will only be considered completed after the lawful ownership of these securities has been transferred to the private investment company;
c) The prices of contributed securities shall be determined by the depository bank according to the closing price on the date of completion of ownership transfer at VSDCC and according to the charter of the private investment company.
Article 260. Application for issuance of the establishment and operation license to a public investment company
1. The application form No. 92 in the Appendix hereof.
2. The offering result report according to form No. 102 in the Appendix hereof and the confirmation of the supervisory bank that the revenue from the offering has been frozen and the quantity of shares sold.
3. The list of shareholders according to form No. 105 in the Appendix hereof.
4. The records on opinions of shareholders about designation of members of the Board of Directors and other issues, personal information sheets and judicial records of members of the Board of Directors (if any).
Article 261. Application for issuance of the establishment and operation license to a private investment company
1. The application form No. 92 in the Appendix hereof enclose with the document authorizing a securities investment fund management company or shareholder representative to complete company establishment procedures.
2. The draft charter of the company according to the model charter provided by the Ministry of Finance.
3. The asset depositing contract with the depository bank.
4. The agreement among the shareholders on establishment of the private investment company which specifies the company’s name, the securities investment fund management company (if any), the depository bank, supervisory bank (if any), contributing shareholders and amount of capital contributed by each shareholder.
5. The depository bank’s confirmation of contributed capital, contributed securities (if any), quantities and ticker symbols of securities contributed by each shareholder, date of recording of securities into the depository account of the investment company enclosed with the securities valuation record prepared by the depository bank.
6. The list of shareholders, intended personnel and personal information sheets according to form No. 91 and form No. 105 in the Appendix hereof; the Certificate of Enterprise Registration, decision of the competent authority on contribution of capital to establishment of the investment company of shareholders that are organizations; judicial records of members of the Board of Directors, the Director/General Director that are issued within the last 06 months before the application is submitted.
7. In case the investment company authorizes a securities investment fund management company to manage its capital, the following documents shall also be included: the investment management contract with the securities investment fund management company; the supervision contract with the supervisory bank.
8. In case the investment company manages its own capital, the application shall also contain the premises lease contract, documents about the right to ownership or enjoyment of the premises.
Article 262. Conditions for increase and decrease in charter capital of an investment company
1. The GMS has approved the capital decrease or follow-on offering; the plan for follow-on offering or capital decrease.
2. In case of decrease in charter capital, the company shall ensure that the charter capital after decrease and net asset value are not smaller than 50 billion VND.
3. In case of charter capital increase by follow-on offering of shares or scrip issue, the company shall have adequate sources of financing from share premium and undistributed post-tax profits according to the latest audited or examined financial statement.
4. In case of capital increase by offering or issuance, the company shall comply with regulations on public securities offering (for public investment companies), private placement (for private investment companies) and issuance to existing shareholders.
5. For private investment companies: There are not more than 99 shareholders. Shareholders that are organizations shall contribute at least 03 billion VND. Shareholders that are individuals shall contribute at least 01 billion VND.
Article 263. Application for adjustment of charter capital of an investment company
1. The application form No. 94 in the Appendix hereof.
2. The resolution of the GMS on approval for the increase/decrease in charter capital, the plan for capital increase/decrease and the revised charter of the company.
3. The list of shareholders after adjustment according to form No. 105 in the Appendix hereof.
4. In case of capital decrease, the following documents shall also be included: the report on decrease in charter capital enclosed with the written confirmation issued the depository bank, supervisory bank of the completion of payment to shareholders; quantity of shareholders, quantity of circulating shares after capital decrease.
5. In case of capital increase by offering or issuance, the following documents shall also be included: The follow-on offering result report according to form No. 102 in the Appendix hereof and a written confirmation that the increase in capital has been frozen at the supervisory bank; the list of new investors (if any);
6. The latest annual financial statement which has been audited in accordance with Article 20 of the Law on Securities and the latest financial statement before the application is submitted.
7. The prospectus and company’s charter (if revised).
Article 264. Changes subject to approval by SSC
1. The investment company shall obtain SSC’s approval before making the following changes:
a) Change of name, legal representative;
b) Change of securities investment fund management company, depository bank, supervisory bank;
c) Change of headquarters location for private investment companies managing their own capital;
d) Change in the operating period.
2. The application for approval for the changes specified in Clause 1 of this Article shall contain:
a) The application form No. 94 in the Appendix hereof;
b) The resolution of the GMS on approval for the changes specified in Clause 1 of this Article and the revised charter of the company;
c) The revised charter of the company;
d) In case of change of the legal representative: The personal information sheet according to Form No. 91 in the Appendix; the judicial record of the new legal representative which is issued within the last 06 months before the application is submitted;
dd) In case of change of the securities investment fund management company, depository bank, supervisory bank: The written commitment of the securities investment fund management company to transfer rights and obligations to the substitute company, depository bank, supervisory bank;
e) In case of extension of operating period: the contract with the depository bank, supervisory bank for extension of depository service provision period;
g) In case of relocation of headquarters: the premises lease contract, documents about the right to ownership or enjoyment of the premises.
Article 265. Conditions for consolidation/merger of investment companies
1. There is a plan, contract for consolidation/merger which is approved by the GMS of the participating companies.
2. The consolidated company or acquiring company satisfies the conditions specified in Article 259 of this Decree.
Article 266. Application for approval for consolidation/merger of investment companies
1. The application form No. 94 in the Appendix hereof.
2. The resolution of the GMS of relevant companies on approval for the consolidation/merger plan and contract.
3. The consolidation/merger plan according to form No. 95 in the Appendix hereof.
4. The consolidation/merger contract according to form No. 96 in the Appendix hereof.
5. The depository, supervision contract of the consolidated/acquiring company.
6. The charter of the consolidating /acquiring company.
7. The list of shareholders and personnel of the consolidating /acquiring company according to form No. 105 in the Appendix hereof.
8. The report of the supervisory bank and depository bank on the rules for determination of net asset value, shares swap ration, payment ratio (if any) and other relevant contents.
9. The list of creditors that demand repayment of loans and values thereof; the list of shareholders that demand repurchase of their shares, quantities and values thereof.
10. The written approvals of the Stock Exchange and VSDCC for delisting, deregistration, release of shares of the consolidating/acquired companies (if any).
11. Original establishment and operation licenses of the consolidating/acquired companies.
12. Other documents proving fulfillment of the conditions specified in Article 261 of this Decree.
Article 267. Procedures for issuance and revision of the establishment and operation license of an investment company
1. Procedures for establishment of a public investment company:
a) The securities investment fund management company shall send the application for public offering of shares by the investment company to SSC;
b) Within 30 days from the receipt of the satisfactory application, SSC shall issue the certificate of public offering of shares. In case the application is rejected, SSC shall issue a written rejection and provide explanation;
c) Within 10 days from the ending date of the offering, the securities investment fund management company shall submit a report on the offering result and the application for issuance of the establishment and operation license to the investment company to SSC.
2. In case of establishment of a private investment company, after completion of technical facilities, personnel and freezing of capital at the depository bank, the securities investment fund management company or the representative of shareholders shall submit the application for issuance of the establishment and operation license to the investment company to SSC.
3. Within 30 days from the receipt of the satisfactory application, SSC shall issue the establishment and operation license to the investment company. In case the application is rejected, SSC shall issue a written rejection and provide explanation.
4. The securities investment fund management company shall complete the documentation for listing of shares of the public investment company on the Stock Exchange within 30 days from the effective date of the establishment and operation license of the public investment company.
5. Procedures for increasing/decreasing charter capital:
a) At least 30 days before the day on which the GMS is convene to approve the plan for follow-on offering, the investment company shall send the plan to SSC. Within 15 days from the receipt of the plan, SSC shall decide whether to issue a written approval or issue a written rejection and provide explanation;
b) The investment company shall follow procedures for public offering of shares (for public investment companies) or private placement (for private investment companies) in accordance with securities laws and enterprise laws;
c) Within 10 days from the ending date of the follow-on offering, the company shall submit the offering report and the application for adjustment of charter capital to SSC. Within 15 working days from the receipt of the satisfactory application, SSC shall issue the revised establishment and operation license. In case the application is rejected, SSC shall issue a written rejection and provide explanation.
6. Procedures for making the changes specified in Clause 264 of this Article:
a) Within 05 working days from the day on which the GMS approves the changes, the investment company shall submit the application for approval for the changes to SSC;
b) Within 15 days from the receipt of the satisfactory application, SSC shall issue the revised establishment and operation license to the investment company. In case the application is rejected, SSC shall issue a written rejection and provide explanation.
7. Procedures for consolidation/merger:
a) Within 30 days from the day on which the GMS of the last investment company approves the consolidation/merger, the investment company shall submit the application for approval for the consolidation/merger to SSC;
b) Within 30 days from the receipt of the satisfactory application, SSC shall issue a decision to approve the consolidation/merger. In case the application is rejected, SSC shall issue a written rejection and provide explanation;
c) Investment companies shall be consolidated/merged in accordance with the Law on Securities and the Law on Enterprises. In case the consolidation/merger is combined with private placement of shares or public offering of shares, the investment companies shall comply with relevant regulations on relevant regulations on offering;
d) Within 30 days from the date of consolidation/merger, the investment company shall submit a consolidation/merger result report enclosed with the supervisory bank’s confirmation of total assets, total debts, net asset value on the date of consolidation/merger, conversion ratio, cast payment ratio (if any);
dd) Within 10 days from the receipt of the satisfactory report, SSC shall issue the new or the revised establishment and operation license to the consolidated/acquiring investment company. In case the application is rejected, SSC shall issue a written rejection and provide explanation.
Article 268. Documentation and procedures for dissolution of an investment company
1. A investment company shall be dissolved in one of the cases specified in Clause 1 Article 104 and Clause 1 Article 114 of the Law on Securities.
2. Within 03 months before the dissolution date prescribed in Point a and Point b Clause 1 Article 104 of the Law on Securities or within 30 days from the date of occurrence of the event that causes the dissolution as according to in Points c, d, dd and e Clause 1 Article 104 of the Law on Securities, the Board of Directors of the investment company shall convene the GSM to approve the dissolution plan.
3. Within 15 working days from the day on which the GMS approves the dissolution plan, the Board of Directors of the investment company shall submit the application for dissolution to SSC. The application shall include:
a) The application form No. 97 in the Appendix hereof;
b) The minutes of meeting and resolution of the GMS on approval for the dissolution of the investment company and the dissolution plan;
c) The dissolution plan according to form No. 95 in the Appendix hereof;
d) The written commitment of the securities investment fund management company (if any), depository bank, supervisory bank (if any) to complete all procedures for liquidation of assets serving the dissolution of the investment company.
4. Within 15 days from the receipt of the satisfactory application, SSC shall issue a notice of receipt of the dissolution plan. In case of rejection, SSC shall issue a written response and provide explanation.
5. The investment company shall follow procedures for dissolution specified in the Law on Enterprises.
6. Within 05 working days from the day on which the dissolution is completed, the Board of Directors shall submit the following documents to SSC:
a) The dissolution result report according to Form No. 98 in the Appendix hereof; confirmation of the securities investment fund management company, depository bank, supervisory bank (if any), audit organization, Board of Directors of the investment company of liquidation of the company’s assets, distribution of the company’s assets among shareholders under the plan approved by the GMS; total revenue obtained from liquidation of assets; total debts payable, including financial obligations to the State and remaining assets to be distributed among shareholders; the list of creditors and paid debts, including tax debts;
b) The original establishment and operation license of the investment company;
c) The report on appraisal of liquidation result prepared by an audit organization appointed by the GMS, Board of Directors of the investment company (if any);
d) Documents of the depository bank, supervisory bank (if any) and securities investment fund management company specifying the money and assets distributed to each shareholder and confirmations of the shareholders that they have fully received the money and assets under the dissolution plan approved by the GMS or confirmation of VSDCC that securities have been distributed among shareholders as requested by the securities investment fund management company, depository bank, supervisory bank (if any) and investors; confirmation of the shareholder register management organization, the issuing organization and the enterprise receiving capital from the fund that ownership of shares/stakes has been transferred to each shareholder as requested by the securities investment fund management company.
7. Within 15 days from the receipt of adequate and satisfactory documents, SSC shall issue the decision to revoke the establishment and operation license of the investment company.
ADMINISTRATION OF PUBLIC COMPANIES
Article 269. Rules for application of regulations of law on administration to public companies that are credit institutions
In case the regulations of this Decree on company administration contradict regulations of law on credit institutions, the latter shall apply.
Article 270. Charter and internal regulations on company administration
1. The company's charter shall be ratified by the General Meeting of Shareholders (GMS) and must not contradict the Law on Enterprises, the Law on Securities, regulations of this Decree and relevant legislative documents.
2. Company administration regulations shall be formulated by the Board of Directors and submitted to the GMS for ratification. Company administration regulations must not contradict regulations of law and the company's charter.
3. The Minister of Finance shall provide the model charter and company administration regulations as reference for public companies to formulate their own charters and administration regulations.
Section 2. SHAREHOLDERS AND GENERAL MEETING OF SHAREHOLDERS
Article 271. Rights and obligations of shareholders
1. Shareholders of public companies have the rights and obligations specified in Clause 1 Article 41 and Article 127 of the Law on Securities, Article 115, Article 116, Article 117, Article 118 and Article 119 of the Law on Enterprises, the company's charter and relevant laws.
2. If a company has preference shares, rights and obligations associated with these preference shares must be specified in the company's charter.
Article 272. Entitlements of the General Meeting of Shareholders (GMS)
1. The GMS has the entitlements specified in the Law on Enterprises.
2. The Board of Directors shall report unimplemented contents of resolutions of the GMS to the GMS during the nearest meeting. Any issue within the jurisdiction of the GMS must be presented to the GMS during the nearest meeting for approval before implementation.
Article 273. General Meeting of Shareholders
1. The Board of Directors, the Board of Controllers and the person who convenes the GMS shall follow the procedures for convening the GMS specified in the Law on Enterprises, the company's charter and administration regulations. A public company shall publish the list of shareholders entitled to participate in the meeting at least 20 days before the deadline for registration. Authorization of participants in the meeting shall comply with Clause 2 Article 144 of the Law on Enterprises.
2. The Board of Directors, the Board of Controllers and the person who convenes the GMS shall prepare the agenda, meeting and time for the shareholders to participate, discuss and vote on each issue in the agenda in accordance with Clause 5 Article 140 of the Law on Enterprises.
3. The public company’s administration regulations shall specify the application of information technology that allows shareholders to participate in and make comments at online meetings, cast electronic votes or otherwise vote electronically according to Article 144 of the Law on Enterprises and the company's charter.
4. An annual GMS of the public company shall be held every year in accordance with the Law on Enterprises. Members of the Board of Directors and the Board of Controllers shall participate in the annual GMS to answer questions of the shareholders who participate in the meeting (if any). Any member of the Board of Directors and the Board of Controllers who cannot participate in the meeting due to a force majeure event shall submit a written report to the Board of Directors and the Board of Controllers. In case the annual financial statement audit report contains qualified opinions, adverse opinions or disclaimer of opinions, the public company shall invite representatives of the accredited audit organization that audited the company’s financial statement to participate in the annual GMS. The invited representatives of the accredited audit organization shall participate in the annual GMS.
5. Comply with other regulations of law and the company's charter.
Section 3. THE BOARD OF DIRECTORS AND MEMBERS THEREOF
Article 274. Nomination and self-nomination of members of the Board of Directors
1. After candidates for members of the Board of Directors have been nominated, the public company shall publish information about these candidates at least 10 days before the opening date of the GMS on the company’s website for the shareholders to study their profiles before voting. Each candidate shall prepare a written declaration that information about him/her is correct and to perform his/her duties in an honest and prudent manner for the best interests of the company if he/she is given the position of member of the Board of Directors. Information about candidates includes:
a) Full name, date of birth;
b) Qualifications;
c) Work experience;
d) Other managerial positions (including positions in the Board of Directors of other companies);
dd) Interests relevant to the company and the company’s related parties;
e) Other information (if any) specified in the company's charter.
The public company shall publish information about the companies in which the candidates are holding the position of members of the Board of Directors and other managerial positions and their interests in these companies (if any).
2. The shareholder or group of shareholders that holds at least 10% of total ordinary shares or a smaller amount specified in the company's charter is entitled to nominate candidates to the Board of Directors in accordance with the Law on Enterprises and the company's charter.
3. In case the number of candidates is smaller than the minimum number specified in Clause 5 Article 115 of the Law on Enterprises, the incumbent Board of Directors shall nominate more candidates or organize the nomination in accordance with the company's charter and administration regulations. This must be announced before the GMS starts to vote for members of the Board of Directors as prescribed by law.
Article 275. Qualifications for members of the Board of Directors
1. Members of the Board of Directors shall satisfy the standards and conditions specified in Clause 1 and Clause 2 Article 155 of the Law on Enterprises and the company's charter.
2. President of the Board of Directors must not concurrently hold the position of Director/General Director of the same public company.
3. Members of the Board of Directors of a public company may concurrently hold the position of member of Board of Directors of up to 05 other companies.
Article 276. Composition of the Board of Directors
1. The Board of Directors of a public company has 03 - 11 members.
2. At least one third (1/3) of the members of the Board of Directors of a public company shall be non-executive members.
3. In case a unlisted public company applies the model specified in Point b Clause 1 Article 137 of the Law on Enterprises, at least one fifth (1/5) of its members of the Board of Directors must be independent members. In case the Board of Directors of this unlisted public company has fewer than 05 members, at least 01 of them must be an independent member.
4. Number of independent members of the Board of Directors of a listed companies:
a) At least 01 independent member if the Board of Directors has 03 – 05 members;
b) At least 02 independent members if the Board of Directors has 06 – 08 members;
c) At least 03 independent members if the Board of Directors has 09 – 11 members.
Article 277. Rights and obligations of members of the Board of Directors
1. Members of the Board of Directors have all the rights specified in the Law on Securities, relevant laws and the company's charter, including the right to be provided with information and documents about the finance and business performance of the company and its units.
2. Members of the Board of Directors have the obligations specified in the company's charter and the following obligations:
a) Perform their duties in an honest and prudent manner for the best interests of the company and its shareholders;
b) Attend all meetings of the Board of Directors and comment on the raised issues;
c) Promptly and fully inform the Board of Directors of the remunerations paid by the subsidiary companies, associate companies and other organizations;
d) Inform the Board of Directors during the nearest meeting of transactions between the company, subsidiary companies and companies over 50% charter capital of which is held by the public company with members of the Board of Directors and their related persons; transactions between the company with companies whose founders or executive officers are members of the Board of Directors over the last 03 years from the transaction date;
dd) Disclose information when trading the company’s shares as prescribed by law.
3. Independent members of the Board of Directors shall prepare reports on performance of the Board of Directors.
Article 278. Responsibilities and obligations of members of the Board of Directors
In addition to the responsibilities and obligations specified in the Law on Enterprises and the company's charter, the Board of Directors also has the following responsibilities and obligations:
1. Assume responsibility to the shareholders for the company’s operation.
2. Ensure equal treatment for all shareholders; respect interests of people with interests relevant to the company.
3. Ensure that the company’s operation is conformable with law, the company's charter and regulations.
4. Formulate operating regulations of the Board of Directors; submit them to the GMS for ratification and post it on the company’s website. The Minister of Finance shall provide the model operating regulations of the Board of Directors of public companies.
5. Supervise and prevent conflict of interest between members of the Board of Directors, the Board of Controllers, the General Director/Director and other executive officers, including improper use of the company’s assets and taking abuse of transactions with related parties.
6. Formulate the company administration regulations and submit them to the GMS for ratification in accordance with Article 270 of this Decree.
7. Designate the person in charge of company administration.
8. Provide training in company administration and necessary skills for members of the Board of Directors, the Director/General Director and other executive officers of the company.
9. Submit reports on performance of the Board of Directors to the GMS in accordance with Article 280 of this Decree.
Article 279. Meetings of the Board of Directors
1. Meetings of the Board of Directors shall be held in accordance with Article 157 of the Law on Enterprises and Point c Clause 3 Article 41 of the Law on Securities.
2. Minutes of meetings of the Board of Directors shall be detailed, contain the full names and signatures of the chair and the minute taker. In case the chair or the minute taker refuses to sign the minutes, regulations of Clause 2 Article 158 of the Law on Enterprises shall apply. The contents approved by the majority of the participating members shall be made into a ratified resolution. Minutes of meetings of the Board of Directors shall be retained in accordance with regulations of law and the company’s charter.
Article 280. Reporting operation of the Board of Directors at annual GMS
The report on operation of the Board of Directors to be presented at the annual GMS as prescribed in Point c Clause 3 Article 139 of the Law on Enterprises and the company's charter shall have the following contents:
1. Remunerations, operating costs and other benefits of the Board of Directors and each of its members as prescribed in Clause 3 Article 163 of the Law on Enterprises and the company's charter.
2. Summaries of the meetings of the Board of Directors and its decisions.
3. Reports on transactions between the company, subsidiary companies and companies over 50% charter capital of which is held by the public company with members of the Board of Directors and their related persons; transactions between the company with companies whose founders or executive officers are members of the Board of Directors over the last 03 years from the transaction date.
4. Activities of independents members of the Board of Directors and their opinions about the operation of the Board of Directors (for listed companies).
5. Operation of the audit committee of the Board of Directors in case the public company applies the model specified in Point b Clause 1 Article 137 of the Law on Enterprises.
6. Operation of other units of the Board of Directors (if any).
7. Performance of the General Director/Director.
8. Performance of other executives.
9. Future plans.
Article 281. Person in charge of company administration
1. The Board of Directors of the public company shall appoint at least 01 person in charge of company administration, who will assist in administration works and may concurrently hold the position of the company’s secretary as prescribed in Clause 5 Article 156 of the Law on Enterprises.
2. The person in charge of company administration must not concurrently work for the accredited audit organization that is auditing the company’s financial statements.
3. The person in charge of company administration has the following rights and obligations:
a) Provide consultancy for the Board of Directors in organizing the General Meeting of Shareholders and performance of relevant tasks between the company and its shareholders;
b) Prepare for meetings of the Board of Directors, the Board of Controllers and the GMS as requested by the Board of Directors or the Board of Controllers;
c) Provide consultancy on meeting procedures;
d) Participate in the meetings;
dd) Provide consultancy on procedures for lawful issuance of resolutions of the Board of Directors
e) Provide financial information, minutes of meetings of the Board of Directors and other information for members of the Board of Directors and the Board of Controllers;
g) Supervise and report to the Board of Directors on the company’s information disclosure;
h) Assist in contact between parties with relevant interests;
i) Protect confidentiality of in accordance with regulations of law and the company's charter;
k) Other rights and obligations prescribed by law and the company's charter.
Section 4. AUDIT COMMITTEE AND MEMBERS THEREOF
Article 282. Composition of the audit committee
1. The Board of Directors of a public company that applies the model specified in Point b Clause 1 Article 137 of the Law on Enterprises shall have an affiliated audit committee.
2. An audit committee shall have at least 02 members. The chairperson of the audit committee shall be an independent member of the Board of Directors. Other members of the audit committee shall be non-executive members of the Board of Directors.
3. Members of the audit committee shall have knowledge about accounting, audit, law and the company’ operation, and must not:
a) Work in the company’s accounting or finance department;
b) Be a member of employee of the accredited audit organization that is auditing the company’s financial statements over the last 03 years.
4. The chairperson of the audit committee shall have a bachelor’s degree or higher in economics, finance, accounting, audit, law or business administration unless higher qualifications are required by the company's charter.
5. The designation of the chairperson and other members of the audit committee is subject to approval by the Board of Directors during its meeting.
Article 283. Rights and obligations of the audit committee
In addition to the rights and obligations in Article 161 of the Law on Enterprises and the company's charter, the audit committee also has the following rights and obligations:
1. Access documents about the company’s operation; discuss with other members of the Board of Directors, the Director/General Director, chief accountant and other managers to collect information serving the operation of the audit committee.
2. Request representatives of the accredited audit organization to participate in meetings of the audit committee to provide explanation for issues relevant to the audited financial statements.
3. Use external legal counseling, accounting and other counseling services where necessary.
4. Formulate policies on detection and management or risks and submit them to Board of Directors; propose solutions for the risks that occur during the company’s operation.
5. Submit a written report to the Board of Directors whenever a member of the Board of Directors, the Director/General Director or another executive officer fails to fulfill their responsibilities prescribed in the Law on Enterprises and the company's charter.
6. Formulate operating regulations of the audit committee and submit them to the Board of Directors for ratification. The Minister of Finance shall provide the model operating regulations of the audit committees of public companies.
7. The audit committee shall have at least 02 meetings per year. Minutes of these meetings must be detailed, bear the signatures of the minute taker and participating members, and be fully retained.
Article 284. Reporting by independent members of the Board of Directors in the audit committee at the annual GMS
1. Independent members of the Board of Directors in the audit committee shall report during the annual GMS
2. Such a report shall have the following contents:
a) Remunerations, operating costs and other benefits of the audit committee and each of its members as prescribed in the Law on Enterprises and the company's charter;
b) Summaries of meetings of the audit committee, its verdicts and proposals;
c) Results of supervision of the company’s financial statements, finance and operation;
d) Evaluation of transactions between the company, subsidiary companies and companies over 50% charter capital of which is held by the public company with members of the Board of Directors, the Director/General Director, other executives of the company and their related persons; transactions between the company with companies whose founders or executives are members of the Board of Directors, the Director/General Director or executive officers over the last 03 years from the transaction date;
dd) Evaluation of the company’s internal control and risk management system;
e) Performance of the Board of Directors, the General Director/Director and other executives of the company;
g) Cooperation between the audit committee with the Board of Directors, the Director/General Director and shareholders.
Section 5. BOARD OF CONTROLLERS AND MEMBERS THEREOF
Article 285. Nomination and self-nomination of members of the Board of Controllers
1. Unless otherwise prescribed by the company's charter, the nomination and self-nomination of members of the Board of Controllers shall comply with Clause 1 and Clause 2 Article 274 of this Decree.
2. In case the number of candidates is smaller than the minimum number, the incumbent Board of Controllers shall nominate more candidates or organize the nomination in accordance with the company's charter and administration regulations.
Article 286. Members of the Board of Controllers
1. The Board of Controllers has 03 - 05 members. These members are not necessarily shareholders of the company.
2. Members of the Board of Controllers shall satisfy the standards and conditions specified in Article 169 of the Law on Enterprises and the company's charter and shall not:
a) Work in the company’s accounting or finance department;
b) Be a member of employee of the accredited audit organization that is auditing the company’s financial statements over the last 03 years.
3. The chief of the Board of Controllers shall have a bachelor’s degree or higher in economics, finance, accounting, audit, law, business administration or another major that is relevant to the enterprise’s operation, unless higher qualifications are required by the company's charter.
Article 287. Rights and obligations of members of the Board of Controllers
1. Members of the Board of Controllers have all the rights specified in the Law on Enterprises, relevant laws and the company's charter, including the right to be provided with information and documents about company’s operation. Members of the Board of Directors, the Director/General Director and other executives of the enterprise shall fully and promptly provide information as requested by members of the Board of Controllers.
2. Members of the Board of Controllers shall comply with regulations of law, the company's charter and professional ethics in performance of their duties.
Article 288. Rights and obligations of the audit committee
In addition to the rights and obligations in Article 170 of the Law on Enterprises and the company's charter, the Board of Controllers also has the following rights and obligations:
1. Submit and request the GMS to approve the list of accredited audit organizations, which will audit the company’s financial statements; choose the accredited audit organization that audits the company’s operation; discharge accredited auditors where necessary.
2. Take responsibility to the shareholders for the supervision tasks performed by the Board of Controllers.
3. Supervise the company’s finance, lawfulness of operation of members of the Board of Directors, the Director/General Director and other executive officers.
4. Cooperate with the Board of Directors, the Director/General Director and shareholders.
5. Send a written notice to the Board of Directors within 48 hours after discovery of violations against the law or the company's charter by a member of the Board of Directors, General Director/Director or another executive of the company, and request the violator to stop committing the violations and take remedial measures.
6. Formulate operating regulations of the Board of Controllers and submit them to the GMS for ratification. The Minister of Finance shall provide the model operating regulations of the Board of Controllers of public companies.
7. Submit reports to the GMS in accordance with Article 290 of this Decree.
Article 289. Meetings of the Board of Controllers
1. The Board of Controllers shall have at least 02 meetings per year. Each meeting must be participated in by at least two thirds (2/3) of its members. Minutes of these meetings must be detailed, bear the signatures of the minute taker and participating members. All minutes of meetings of the Board of Controllers must be retained in order to attribute responsibility of each member.
2. The Board of Controllers is entitled to request members of the Board of Directors, Director/General Director and representatives of the accredited audit organization to participate in its meetings and clarify raised issues.
Article 290. Reporting operation of the Board of Controllers at annual GMS
If the public company applies the model specified in Point a Clause 1 Article 137 of the Law on Enterprises, the report on operation of the Board of Controllers to be presented at the annual GMS as prescribed in Point d and Point dd Clause 3 Article 139 of the Law on Enterprises shall have the following contents:
1. Remunerations, operating costs and other benefits of the Board of Controllers and each of its members as prescribed in Article 172 of the Law on Enterprises and the company's charter.
2. Summaries of meetings of the Board of Controllers, its verdicts and proposals.
3. Results of supervision of the company’s operation and finance.
4. Evaluation of transactions between the company, subsidiary companies and companies over 50% charter capital of which is held by the public company with members of the Board of Directors, the Director/General Director, other executives of the company and their related persons; transactions between the company with companies whose founders or executives are members of the Board of Directors, the Director/General Director or executive officers over the last 03 years from the transaction date;
5. Performance of the Board of Directors, the General Director/Director and other executives of the company.
6. Evaluation of the cooperation between the Board of Controllers, the Board of Directors, the Director/General Director and shareholders.
Section 6. PREVENTION OF CONFLICT OF INTEREST
Article 291. Responsibility for honesty and prevention of conflict of interest of executive officers
1. Members of the Board of Controllers, the Board of Controllers, Director/General Director and other executive officers shall disclose their relevant interests in accordance with the Law on Enterprises and relevant legislative documents.
2. Members of the Board of Directors, the Board of Controllers, the Director/General Director, other executive officers and their related persons may only use the information obtained from their positions to serve the interests of the public company.
3. Members of the Board of Controllers, the Board of Controllers, Director/General Director and other executive officers shall send written notices to the Board of Directors and the Board of Controllers of the transactions between the public company, subsidiary companies, companies over 50% of charter capital of which is held by the public company with them or with their related persons as prescribed by law. The public company shall disclose information about the transactions that are approved by the GMS or the Board of Directors in accordance with regulations of the Law on Securities on information disclosure.
4. Members of the Board of Controllers must not vote on the transactions that bring interests to themselves or their related persons as prescribed by the Law on Enterprises and the company's charter.
5. Members of the Board of Directors, the Board of Controllers, the Director/General Director, other executive officers and their related persons must not use or reveal internal information for carrying out relevant transactions.
Article 292. Transactions with related persons
1. When conducting transactions with related persons, the public company shall enter into written contracts in a fair and voluntary manner.
2. Public companies shall implement necessary measures for preventing their shareholders and related persons to carry out transactions that cause loss of capital, assets or other resources of the company.
Article 293. Transactions shareholders, executive officers and their related persons
1. A public company must not provide loans or guarantee for shareholders that are individuals and their related persons unless the public company is a credit institution.
2. A public company must not provide loans or guarantee for shareholders that are organizations and their related persons, except in the following cases:
a) The public company is a credit institution;
b) The shareholder is a subsidiary company whose shares/stakes are not held by the State and has contributed capital in/purchased shares of the public company before July 01, 2015.
3. A public company must not provide loans or guarantee for related persons of shareholders that are organizations, except in the following cases:
a) The public company is a credit institution;
b) The public company and the organization that is a relate person of the shareholder are companies in the same corporation or group, and the transactions is approved by the GMS or the Board of Directors as prescribed by the company's charter;
c) Other cases prescribed by law.
4. A public company may only carry out the following transactions after they are approved by the GMS:
a) Provision of loans or guarantees for members of the Board of Directors, the Board of Controllers, the Director/General Director, other executive officers that are not shareholders, organizations and individuals that are related to them;
Provision of loans or guarantees for organizations that are related to members of the Board of Directors, the Board of Controllers, the Director/General Director, other executive officers of the public company that are in the same corporation or group as the public company is subject to approval by the GMS or the Board of Directors as prescribed by the company's charter;
b) Any transaction that is worth at least 35% of the total assets written in the latest financial statement or any transaction that causes the total transaction value in 12 months from the date of the first transaction reach at least 35% of the total assets written in the latest financial statement, or a smaller ratio specified in the company's charter, between the public company and one of the following entities:
- Members of the Board of Directors, members of the Board of Controllers, the Director/General Director, other executive officers and their related persons;
- Shareholders, authorized representatives of shareholders that hold over 10% of the company’s ordinary shares and their related persons;
- Enterprises that are related to the entities specified in Clause 2 Article 164 of the Law on Enterprises;
c) Loan or sale of assets that exceed 10% of the total assets in the latest financial statement between the company and any shareholder that is holding at least 51% of voting shares of that shareholder’s related person.
5. The Board of Directors shall consider approving the contracts and transactions specified in Point c Clause 4 of this Article if they are worth less than 35% of the total assets in the latest financial statement, or a smaller ratio or value specified in the company's charter.
Article 294. Protection of lawful rights of persons whose interests are relevant to the public company
1. Public companies shall fulfill their responsibility to the community and the persons whose interests are relevant to public companies in accordance with applicable laws and the company's charter.
2. Public companies shall comply with regulations of law on labor, environment and society.
Section 7. REPORTING AND INFORMATION DISCLOSURE
Article 295. Obligation to disclose information
1. Public companies shall disclose fully and accurately disclose the information that must be disclosed periodically and on an ad hoc basis as prescribed by securities laws to their shareholders and the public. Other information must be fully and accurately disclosed if it may affect the securities price and decision making of shareholders and investors.
2. Information shall be disclosed in accordance with regulations of law and the company's charter in order to make sure it is accessible to shareholders and the public. The language of disclosed information must be clear, easy to understand and unequivocal.
Article 296. Reporting and disclosing information about the company’s organizational structure and operation
A public company shall submit a report to State Securities Commission and the Stock Exchange and disclose information about changes to its organizational structure and operation within 24 hours after the changes are approved by the General Meeting of Shareholders.
Article 297. Reporting and disclosing information about the company’s administration
1. Public companies report on their administration at the annual GMS and disclose information in their annual reports in accordance with regulations of securities laws on information disclosure.
2. Public companies shall submit reports and disclose information about their administration every 06 months in accordance with regulations of securities laws on information disclosure.
Article 298. Disclosing information about incomes of members of the Board of Directors and the Director/General Director
Remunerations of each member of the Board of Directors, salaries of the General Director and other executive officers shall be presented in a separate section of the company’s annual financial statement and reported at the annual GMS.
Article 299. Responsibility of members of the Board of Directors, members of the Board of Controllers and the Director/General Director for reporting and information disclosure
In addition to the responsibilities specified in Article 291 of this Decree, members of the Board of Directors, members of the Board of Controllers and the Director/General Director also has the responsibility to inform the Board of Directors and the Board of Controllers:
1. Transactions between the public company and companies whose founding members or executive officers are members of the Board of Directors, members of the Board of Controllers or the Director/General Director over the last 03 years from the transaction date.
2. Transactions between the public company and companies whose members of Board of Directors, General Director/Director or major shareholders are related persons of the public company’s members of the Board of Directors, members of the Board of Controllers or the Director/General Director.
Article 300. Organization of information disclosure
1. Public companies shall formulate and issue their own regulations on information disclosure according to the Law on Securities and its guiding documents.
2. The legal representative or the person authorized to disclose information of a public company shall:
a) Disclose the company’s information to the public in accordance with regulations of law and the company's charter;
b) Make his/her name and phone number publicly available to shareholders.
MEASURES FOR ENSURING SECURITY AND SAFETY TO THE SECURITIES MARKET
Section 1. IMPLEMENTATION OF MEASURES FOR ENSURING SECURITY AND SAFETY TO THE SECURITIES MARKET IN MANAGEMENT AND SUPERVISION OF THE SECURITIES MARKET
Article 301. Supervision of security and safety to the securities market
1. Supervision of security and safety to the securities market is meant to collect and analyze information to identify threats and risks to the security and safety of the securities market in order to come up with solutions for ensuring security and safety to the securities market.
2. Risks to the system are the following situations or signs that these situations may happen:
a) A large scale securities company, securities investment fund management company or some securities companies or securities investment fund management companies are shut down, dissolved or go bankrupt;
b) Serious violations against regulations on securities and the securities market are committed and seriously affect the market, or there are considerable market-wide fluctuations of one or some of the following elements: total net worth, total value of transaction/session, total foreign indirect investment in the securities market, total value of margin trading at securities companies, total value of entrusted investment portfolios at securities investment fund management companies;
c) There is an event that negatively affects the stability, order and continuity of the securities market or seriously affect lawful rights and interests of organizations and individuals market-wide.
3. SSC shall take charge and cooperate with Stock Exchanges, VSDCC in frequent supervision of security and safety of the securities market; develop a mechanism for cooperation in supervision of security and safety of the securities market; take charge and cooperate with Stock Exchanges, VSDCC and their members in organizing emergency drills where necessary.
4. Stock Exchanges, members of Stock Exchanges shall supervise security and safety of the securities market. VSDCC and its members shall supervise the security and safety of the systems for registration, depository, clearing and settlement of securities. Stock Exchanges and VSDCC shall submit reports on supervision of security and safety of the securities market to SSC on an annual basis or as requested by SSC or whenever risks to their systems are found, including response and remedy plans.
5. Stock Exchanges and VSDCC shall organize response plan drills and supervise emergency drills by their members. Members of Stock Exchanges, members of VSDCC and clearing banks shall cooperate with Stock Exchanges and VSDCC in development, execution and drill of emergency response plans. Stock Exchanges, VSDCC, their members and clearing banks shall submit reports to SSC and publish information about the outcomes of their drills on their websites within 10 days after the drill ends.
6. SBV, the Ministry of Public Security, other Ministries, ministerial agencies, relevant agencies and organizations, within the scope of their functions, tasks, powers, shall cooperate with the Ministry of Finance and SSC in supervising security and safety of the securities market; promulgate or propose and organize implementation of plans, solutions, measures for response to financial crisis or major fluctuations of the economy on the national, regional and global scale that might affect the stability, safety and integrity of the securities market.
Article 302. Response to emergencies, events, fluctuations that affect the safety, stability and integrity of the securities market
1. Response to emergencies, events, fluctuations that affect the safety, stability and integrity of the securities market include:
a) Detection of emergencies, events, fluctuations that affect the safety, stability and integrity or the securities market;
b) Verification, analysis, evaluation, classification of emergencies, events, fluctuations of the securities market;
c) Implementation of measures to minimize the effects and damage caused by the emergencies;
d) Implementation of the plan for response to emergencies, events, fluctuations of the securities market that affect: the entire market or all activities, the majority of the market or activities, part of the market or activities;
dd) Verification of causes, take actions or request a competent authority, competent person to take action as prescribed by law.
2. Responsibility of SSC:
a) Cooperate with Stock Exchanges, VSDCC, securities companies, securities investment fund management companies in responding to emergencies, events, fluctuations that affect the entire or part of the securities market o activities thereon;
b) In case of major fluctuations that affect the safety and security of the securities market, SSC shall report to the Ministry of Finance, the Government and the Prime Minister on the market situations, solutions for stabilizing the market and ensuring financial security and safety.
3. In response to emergencies, events, fluctuations that affect the safety, stability and integrity or the securities market, SSC shall implement the following measures:
a) Request the Stock Exchange to suspend or terminate transaction of one or some listed, registered securities on the securities trading system;
b) Suspend, terminate or restore part or all trading activities on the underlying securities market, derivative market of the Stock Exchange;
c) Suspend, terminate, part or all or restore securities registration, depositing, clearing, settlement activities of VSDCC;
d) Request the Stock Exchange to change its trading hours, reduce the fluctuation of prices, interrupt continuous order matching transactions or other technical measures;
dd) Implement measures for control, restrict or ban one or some securities-related securities for a limited period of time as prescribed by law;
e) Other necessary measures after they are approved by the Minister of Finance.
4. The Stock Exchange, VSDCC shall respond to emergencies, events, fluctuations that affect the safety, stability and integrity of the securities market or affect the safety, security of the system for securities registration, depositing, settlement, clearing. Clearing banks shall respond to emergencies, events, fluctuations that affect securities settlement activities.
5. Securities companies, securities investment fund management companies shall respond to emergencies, events, fluctuations that affect the safety, stability and integrity or the securities market within their scope of operation.
6. The Stock Exchanges, VSDCC, clearing banks, securities companies, securities investment fund management companies shall immediately report to SSC within 24 hours after the occurrence of the emergencies, events, fluctuations that affect the safety, stability and integrity of the securities market that are relevant to their operations, response plan; submit periodic reports or ad hoc reports at the requests of SSC on implementation of the response plan.
Article 303. Suspension, termination of trading of one or some securities that are listed, registered securities on the securities trading system
1. The Stock Exchange shall suspend or terminate the trading of one or some securities that are listed or registered securities on the securities trading system in accordance with Point d Clause 1 Article 46 of the Law on Securities and at the request of SSC. The Stock Exchange shall submit a report to SSC within 24 hours after this measure is implemented.
2. The Stock Exchange include regulations on suspension, termination of the trading of one or some securities that are listed or registered on the securities trading system in its rules and regulations.
3. The Stock Exchange shall disclose information on its website within 24 hours after the suspension or termination is imposed or lifted.
Article 304. Suspension, termination of part or all trading activities of the Stock Exchange
1. SSC shall issue the decision on suspension, termination of part or all trading activities of the Stock Exchange in one of the cases specified in Clause 1 Article 49 of the Law on Securities, restoration of part or all trading activities of the Stock Exchange in accordance with Clause 2 Article 49 of the Law on Securities after it is approved by the Minister of Finance, the Prime Minister.
2. The suspension period shall not exceed 05 working days. Where necessary, SSC may request the Minister of Finance to consider extending the suspension period for up to 05 more days.
3. Within 24 hours after the decision on suspension, termination or restoration of trading activities of the Stock Exchange is published on the website of SSC, the Stock Exchange shall implement it and disclose information on its website.
Article 305. Partial suspension, termination or restoration of securities registration, depositing, clearing, settlement activities of VSDCC
1. SSC shall issue the decision on suspension, termination of part or all securities registration, depositing, clearing, settlement activities of VSDCC in one of the cases specified in Clause 1 Article 68 of the Law on Securities, restoration of part or all securities registration, depositing, clearing, settlement activities of VSDCC in accordance with Clause 2 Article 68 of the Law on Securities after it is approved by the Minister of Finance, the Prime Minister.
2. The suspension period shall not exceed 05 working days. Where necessary, SSC may request the Minister of Finance to consider extending the suspension period for up to 05 more days.
3. Within 24 hours after the decision on suspension, termination or restoration of securities registration, depositing, clearing, settlement activities of VSDCC is published on the website of SSC, VSDCC shall implement it and disclose information on its website.
Section 2. APPLICATION OF MEASURES FOR ASSURANCE OF SECURITY AND SAFETY OF THE SECURITIES MARKET IN PREVENTION OF VIOLATIONS AGAINST REGULATIONS OF LAW ON SECURITIES AND THE SECURITIES MARKET
Article 306. Measures for prevention of violations against regulations of law on securities and the securities market
1. The measures specified in Point e and Point g Clause 1 Article 7 of the Law on Securities will be referred to as “precautionary measures”.
2. The measures of temporary or permanently prohibition from holding certain positions in securities companies, fund management companies, branches of foreign securities companies, investment companies specified in Point e Clause 1 Article 7 of the Law on Securities shall be applied to the following positions: President of the Board of Directors, President of the Board of Members, company’s President, members of the Board of Directors, members of Board of Members, legal representative, Director/General Director, Deputy Director/Deputy General Director, Financial Director, chief accountant, Chief Controller, Controllers, members of Internal Audit Board and equivalent managerial positions elected by the GMS, Board of Directors or Board of Members, or designated by the company’s President.
3. The measures of prohibition from securities activities specified in Point e Clause 1 Article 7 shall be applied to organizations and individuals making offering, listing, trading, securities investment, providing securities-related services specified in Clause 14 Article 4 of the Law on Securities, including:
a) Temporary or permanent prohibition from offering, issuing securities;
b) Temporary or permanent prohibition from listing, registration of securities;
c) Temporary or permanent prohibition from securities business, provision of securities-related services, registration, depositing, clearing, settlement of securities;
d) Temporary or permanent prohibition from provision of audit services for public interest entities in the field of securities;
dd) Temporary or permanent prohibition from securities trading.
4. The measure of freezing securities accounts or money account that are involved in violations against securities laws shall be applied in the following cases:
a) It is necessary for verification of information as the basis for imposition of penalties for securities offences;
b) An organization or individual is suspected of violations against securities laws and the freezing of the securities account or money account is necessary for prevention of further violations or stopping the violator from laundering the money or securities involved in the violations;
c) It is requested by a competent authority or competent person as prescribed by law.
5. The organizations and individuals that incur administrative penalties for any of the serious violations specified in Article 12 of the Law on Securities shall be prohibited from one or some securities-related activities for 02 – 03 years, prohibited from holding certain positions in securities companies, fund management companies, branches of foreign securities companies, investment companies for 02 – 03 years.
The organizations and individuals that incurred administrative penalties for any of the serious violations specified in Article 12 of the Law on Securities but still repeat the violations or are facing criminal prosecutions for any of the securities offences specified in the Criminal Code shall be prohibited from one or some securities-related activities for 03 - 05 years, prohibited from holding certain positions in securities companies, fund management companies, branches of foreign securities companies, investment companies for 03 - 05 years.
6. The organizations and individuals that have faced criminal prosecution any of the securities offences specified in the Criminal Code but still commit serious violations against securities laws specified in Article 12 of the Law on Securities shall be permanently prohibited from one or some securities-related activities, permanently prohibited from holding certain positions in securities companies, fund management companies, branches of foreign securities companies, investment companies.
Article 307. Procedures for imposition of temporary or permanently prohibition from holding certain positions or doing certain activities relevant to securities or the securities market
1. Post the decision on penalties for administrative violations for serious securities-related violations or the court judgment, proposal of a competent authority or competent person, the President of SSC shall implement one of the measures specified in Clauses 2, 3, 4 Article 306 of this Decree.
2. The application of the measures specified in Clauses 2, 3, 4 Article 306 of this Decree shall be done in the form of a decision issued by the President of SSC. The decision shall have the following information: the basis for application, name and address of the violator; the measures applied; duration and starting date; cooperating entities and their responsibilities; supervisor.
3. Such a decision shall be sent to the violator, relevant organizations and individuals and published on the websites of SSC, the Stock Exchange and VSDCC within 02 working days from the day on which it is issued. Within 24 hours after receiving the decision, the listed/registered organization, securities company, securities investment fund management company, Vietnamese branch of the foreign securities company or fund management company, investment company in which the violator is an internal actor or securities practitioner shall publish the decision on its website.
4. In case of temporary prohibition, the violating organization or individual shall immediately stop holding the prohibited position or doing the prohibited securities activities. During the prohibition period, the violator will not be granted new securities-related licenses, certificates or approvals relevant.
5. In case of permanent prohibition, the violator will have their securities-related licenses, certificates and approvals revoked, applications for new securities-related licenses, certificates and approvals rejected. The violator must not hold the prohibited positions and do prohibited activities until there is a competent authority’s decision to lift such prohibition.
Article 308. Procedures for freezing securities accounts, requesting competent persons to freeze money accounts that are involved in violations against securities laws
1. Procedures for freezing securities accounts:
a) In the event specified in Clause 4 Article 306 of this Decree, SSC’s President shall issue a decision to freeze the securities account. The decision shall specify: the basis for application, name and address of the violator; information about the frozen securities accounts; freezing duration, starting date; cooperating entities, supervisor;
b) Within 01 working days from its issuance date, the decision must be sent to the violator, the securities company where the account is frozen, relevant organizations and individuals, the Stock Exchange and VSDCC;
c) Within 24 hours after the decision is received, the securities company shall freeze the securities trading account; VSDCC shall freeze the securities in the depository account and notify the account holder;
d) When the freezing period specified in the decision of SSC’s President expires, the securities company shall unfreeze the securities trading account; VSDCC shall unfreeze securities in the depository account and notify the account holder.
2. Procedures for requesting a competent person to freeze money accounts:
a) In the event specified in Clause 4 Article 306 of this Decree, SSC’s President shall issue a document requesting the credit institution, competent person at the credit institution where the violator’s account is opened to freeze the account. The document shall specify: the basis for application, name and address of the violator; information about the frozen accounts; freezing duration, starting date; relevant organizations and individuals;
b) Within 02 working days from its issuance date, the request shall be sent to the credit institution, the competent person at the credit institution, relevant organizations and individuals;
c) Within 03 working days from the day on which SSC’s request is received, the credit institution, the competent person at the credit institution shall issue a decision to freeze the account, notify the SSC and the account holder. In case the request is rejected or partially rejected, the competent person at the credit institution shall provide explanation and take responsibility for their decision;
d) The freezing and unfreezing of accounts of credit institutions and competent persons at credit institutions shall be carried out in accordance with relevant laws.
IMPLEMENTATION CLAUSES
1. This Decree comes into force from January 01, 2021.
2. This Decree supersedes:
a) The Government's Decree No. 58/2012/ND-CP dated July 20, 2012 detailing and guiding the implementation of a number of articles of the Law on Securities and the Law on Amendments to the Law on Securities;
b) The Government's Decree No. 60/2015/ND-CP dated June 26, 2015 on amendments to Decree No. 58/2012/ND-CP;
c) The Government’s Decree No. 86/2016/ND-CP dated July 01, 2016 on conditions for securities investment and business;
d) Pursuant to the Government’s Decree No. 71/2017/ND-CP dated business administration of public companies.
3. This Decree abolishes Article 13 and Article 14 of the Government’s Decree No. 151/2018/ND-CP dated November 07, 2018.
Article 310. Transition clauses
1. The public companies specified in Clause 4 Article 135 of the Law on Securities No. 54/2019/QH14 may offer shares to existing shareholders according to their holdings in the form of public securities offering specified in this Decree.
2. A public company that is following procedures for delisting may offer shares to existing shareholders according to their holdings in the form of public securities offering specified in this Decree until SSC issues the notification of delisting.
3. The regulations of Clause 2 Article 19 of this Decree will be applied after 02 years from the effective date of this Decree.
4. Public companies having treasury shares that are purchased before the effective date of the Law on Securities No. 54/2019/QH14 may sell them or use them as bonus shares in accordance with the Law on Securities No. 70/2006/QH11, which is amended by the Law on Securities No. 62/2010/QH12 and their elaborating documents. These companies must not repurchase their own shares until the previously purchased treasury shares have been settled, except the case of repurchase of shares specified in Clause 2 Article 36 of the Law on Securities No. 54/2019/QH14.
5. In case the GMS of a public company approves its delisting in accordance with Clause 4 Article 135 of the Law on Securities No. 54/2019/QH14, the company shall submit the application for delisting to SSC in accordance with Article 39 of the Law on Securities No. 54/2019/QH14 within 30 days from the day on which the approval is granted by the GMS.
6. A public company specified in Clause 5 Article 135 of the Law on Securities No. 54/2019/QH14 shall submit the application for delisting to SSC in accordance with Article 39 of the Law on Securities No. 54/2019/QH14 within 90 days from its effective date.
7. Public companies that have had their shares have been listed or registered before the effective date of the Law on Securities No. 54/2019/QH14 but that fail to satisfy the conditions that have to be satisfied by public companies specified in the Law on Securities No. 70/2006/QH11, which is amended by The Law on Securities No. 62/2010/QH12 and its elaborating documents, shall be delisted in accordance with Article 38 and Article 39 of the Law on Securities No. 54/2019/QH14.
8. Equitized enterprises that have been registered on UPCOM before the effective date of the Law on Securities No. 54/2019/QH14 but the completion of public company registration is not confirmed by SSC will be deregistered after 01 year from the effective date of this Decree.
9. Before official inauguration date of VNX and VSDCC prescribed in the Law on Securities No. 54/2019/QH14, members of HNX, HoSE and VSD shall operate, perform the rights and obligations specified in this Decree.
10. After VNX and its subsidiary companies are officially inaugurated according to the Law on Securities No. 54/2019/QH14, the operations specified in this Decree shall be carried out as follows:
a) VNX shall rearrange the securities lists following the road map decided by the Prime Minister;
b) Within 01 year from the official inauguration date of VNX and its subsidiary companies, members of HNX and HoSE shall keep performing the rights and obligations of members of VNX and apply for membership with VNX.
11. After the effective date of this Decree, State Treasury may keep participating in debt instrument transaction without having to re-apply for registration with VNX and its subsidiary companies.
12. Regulations of Point e, Point h and Point o Clause 1 Article 120 of this Decree shall be applied after 01 year from the effective date of this Decree.
13. Within 03 years from the effective date of this Decree, securities clearing, settlement by central counterparty clearing shall be carried out in accordance with this Decree. Before that, regulations of the Law on Securities No. 70/2006/QH11, which is amended by the Law on Securities No. 62/2010/QH12 and its elaborating documents, shall apply.
14. Members of VSDCC may participate in securities clearing and settlement as if direct clearing members as prescribed by this Decree within 12 months after the central counterparty clearing is officially deployed. After this, only clearing members may participate in securities clearing and settlement.
15. From the effective date of this Decree, the operational risk management funds specified in Clause 3 Article 156 of this Decree will replace the operational risk management fund and derivative payment risk management fund specified in Decree No. 122/2017/ND-CP. The balance the operational risk management fund and derivative payment risk management fund of VSDCC before the effective date of this Decree shall be fully transferred to the operational risk management fund specified in Clause 3 Article 156 of this Decree.
16. Securities that have been registered at VSDCC and used as collateral in secured transactions at Property and Transaction Registration Centers of National Secured Transaction Registry affiliated to the Ministry of Justice do not have to be registered at VSDCC as prescribed in this Decree. Changes, correction of errors and cancellation of registration of secured transactions of these securities shall be carried out at Property and Transaction Registration Centers of National Secured Transaction Registry affiliated to the Ministry of Justice in accordance with regulations of law on registration of security interests.
17. Securities companies that signed contracts for provision of the services specified in Clause 3 Article 86 of the Law on Securities No. 54/2019/QH14 before its effective date but are not licensed for provision of issuance guarantee may keep executing these signed contracts.
18. The organizations that contribute capital to private funds that were established before the effective date of the Law on Securities No. 54/2019/QH14 and do not fall into the cases specified in Clause 1 Article 11 of the Law on Securities may keep holding a quantity fund certificates that is corresponding to the capital contributed to the funds.
19. The organizations that have signed contracts to act as fund certificate distribution agents of public funds that are established before the effective date of this Decree may keep executing these contracts and apply for registration of fund certificate distribution in accordance with Article 219 and Article 220 of this Decree within 01 year from the effective date of this Decree.
20. Every public company shall formulate its company's charter, internal regulations on company administration, operating regulations of the Board of Directors, the Board of Controllers in accordance with the Law on Enterprises No. 59/2020/QH14, the Law on Securities No. 54/2019/QH14, this Decree and relevant legislative documents, submit them to the earliest GMS for approval after the effective date of this Decree.
Article 311. Organization of implementation
Ministers, heads of ministerial-level agencies, heads of governmental agencies, Presidents of the People’s Committees of provinces are responsible for the implementation of this Decree./.
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