Securities

¤ Circular No. 202/2015/TT-BTC of the Ministry of Finance dated 18 December 2015 guiding the listing on Stock exchange.

  • Pursuant to Circular 202, organizations granted listing rights must list its securities for trading within 90 days from date of granting.
  • Any organization cancelling listed shares (compulsory or voluntary) may only re-list such shares after 12 months from such cancelation, save where approval is obtained for listing on other Stock exchange.
  • A listed company can additionally list its swap shares provided that its return on equity (ROE) should be at least 5% after such swap.  Circular 202 also provides for other settlement where such ratio is not met.

¤ Circular No. 203/2015/TT-BTC of the Ministry of Finance dated 21 December 2015 guiding the trade on securities market

Circular 203 is expected to create more liquidity to the securities market with a number of new rights of the investors including:

  • Right to trade their pending securities (i.e. purchased securities but pending for ownership transfer).
  • Right to make buying orders when having payment guarantee from their depository bank.
  • Right to conduct “transactions in a day” (i.e. sale and purchase of same securities with same quantity on same account within a day) after executing the contract for transactions in a day and contract for escrow transaction with the securities company.
  • Circular 203 also regulates that all payments must be made via commercial banks. The securities company cannot internally transfer the money between accounts of the investor.

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