If the listed organization’s shares are not traded, how long will it be delisted in Vietnam?

1. If the listed organization’s shares are not traded, how long will it be delisted in Vietnam?

In Clause 1, Article 120 of Decree 155/2020/ND-CP stipulating compulsory delisting, as follows:

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.

With this provision, when your company has the listed shares that are not traded at the Stock Exchange for 12 months, the listed shares will be delisted in Vietnam.

2. What are cases of secured warrants shall be delisted in Vietnam?

According to Clause 6, Article 120 of Decree 155/2020/ND-CP, 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.

According to this Article, the secured warrants of a public company will be delisted if it falls into one of the above cases in Vietnam.

Best Regards!