This Decree, issued by the Government on January 19, details the implementation of a number of articles of the Securities Law regarding public offering of securities, securities listing, securities companies, fund management companies, and securities investment companies.
This Decree, issued by the Government on January 19, details the implementation of a number of articles of the Securities Law regarding public offering of securities, securities listing, securities companies, fund management companies, and securities investment companies.
The Decree specifies conditions for the first-time public offering of shares as follows:
For foreign-invested enterprises transformed into joint-stock companies that offer shares to the public:
- Fully meeting the conditions set at Points a and b, Clause 1, Article 12 of the Securities Law;
- Having a plan on the issue, and a plan on the use of capital from the offering, of shares, approved by the owner of the enterprise with 100% foreign capital or the Management Board of the joint-venture enterprise; and,
- Being provided consultancy by a securities company in making the dossier of share offering.
For foreign-invested enterprises already transformed into joint-stock companies:
- Fully meeting the conditions set in Clause 1, Article 12 of the Securities Law; and,
- Being provided consultancy by a securities company in making the dossier of share offering.
Issuing organizations that offer securities abroad must meet the following conditions:
- Not being on the list of business lines banned from participation by foreign parties and ensuring a room for foreign parties according to law;
- Having a decision approving the offering of securities abroad and a plan on the use of capital, issued by the Management Board or the General Assembly of Shareholders (for joint-stock companies), the Members’ Council (for limited liability companies with two or more members), the owner of the company (for one-member limited liability companies), or the representative of capital owner (for state companies); and,
- Meeting the conditions set by a competent agency of the country with which the issuing organization registers the offering of securities.
Representative offices of foreign securities companies or fund management companies having operated before the effective date of the Securities Law under the establishment licenses not granted by the State Securities Commission (SSC) shall carry out re-registration procedures with the SSC within one year after this Decree takes effect.
Securities practice certificates granted before the effective date of the Securities Law which are still valid for more than 6 months must be renewed.
(Source: VietnamLaw)
