Decree No. 155/2020/ND-CP guiding the Law on Securities
Total value of the shares registered for initial public offering is at least VND 50 billion
The Decree No. 155/2020/ND-CP on detailing and guiding the implementation of a number of articles of the Law on Securities is promulgated by the Government on December 31, 2020.
Accordingly, shareholders of a public company registering for public offering of stocks and issuing organizations must open a frozen account to receive securities payments of the offering or issuance at a bank or foreign bank branch, except for the case of issuing stocks to exchange, to pay dividends, to increase the share capital from the equity source or issuing bonus stocks for employees.
Besides, conditions for initial public offering of shares of public securities investment company include: total value of the shares registered for offering is at least VND 50 billion; have issue plan and plan for use of capital raised from the offering; must be supervised by the Supervisory Bank; shares for public offering must be listed on the Stock Exchange after the end of the offering; securities investment fund management company has at least two people operating securities investment company; etc.
In addition, measures of prohibiting institutions or persons from carrying out securities and securities market activities for a definite term or for good comprise: prohibiting the offering or issuance of securities for a definite term or for good; prohibiting the listing or registration of securities transactions for a definite term or for good; prohibiting the securities trading, providing services on securities and the securities market; prohibiting the performance of audits for entities with public interests in the securities sector for a definite term or for good; etc.
This Decree takes effect on January 01, 2021.
For further details of the Decree 155/2020/ND-CP, Click here
translation of the Official Gazette of the Vietnam News Agency
THE SOCIALIST REPUBLIC OF VIETNAM
Hanoi, December 31, 2020
On detailing and guiding the implementation of a number of articles of the Law on Securities
Pursuant to the Law on Organization of the Government dated June 19, 2015 and the Law Amending and Supplementing a Number of Articles of the Law on Organization of the Government and the Law on Organization of Local Administration dated November 22, 2019;
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 proposal of the Minister of Finance;
The Government hereby promulgates the Decree on detailing and guiding the implementation of a number of articles of the Law on Securities.
Article 1. Scope of regulation
1. This Decree details 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 and Clause 7 Article 135 of the Law on Securities.
2. This Law does not regulate the following:
a) Derivatives and activities on the derivative stock market, except contents on payment banks, setting aside operations risk prevention funds of the Vietnam Securities Depository and Clearing Corporation, securities practice, foreign investors' participation in Vietnam's securities market and measures to ensure security and safety of the securities market;
b) The public offering of stocks to convert enterprises with 100% State-owned charter capital, single-member limited liability companies of enterprise with 100% State-owned charter capital, and public non-business units into joint stock companies and transfer of state capital, capital of enterprise with 100% State-owned charter capital invested in other enterprises;