What are regulations on application for termination of operations, shutdown of a branch of a securities company in Vietnam?

What are regulations on application for termination of operations, shutdown of a branch of a securities company in Vietnam?

I would like to know some information about regulations on application for termination of operations, shutdown of a branch of a securities company in Vietnam.

Answer:

Pursuant to Article 194 of the Decree 155/2020/NĐ-CP stipulating regulations on application as follows:

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.

What are prodecures for issuance and revision of the establishment and operation license of an securities investment company in Vietnam?

I would like to know some information about prodecures for issuance and revision of the establishment and operation license of an securities investment company in Vietnam.

Answer:

Pursuant to Article 267 of the Decree 155/2020/NĐ-CP stipulating prodecures for issuance and revision of the establishment and operation license of an securities investment company in Vietnam as follows:

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.

What are conditions for establishment of an overseas branch, subsidiary company, representative office of a securities company in Vietnam?

I would like to know some information about prodecures for issuance and revision of the establishment and operation license of an securities investment company in Vietnam.

Answer:

Pursuant to Article 195 of the Decree 155/2020/NĐ-CP stipulating as follows:

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.

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