What are duties of securities offsetting members in Vietnam?

Nội dung chính

• What are obligations of securities offsetting members in Vietnam?
• What are securities activities in Vietnam?
• When shall tender offer be not mandatory in Vietnam?

What are obligations of securities offsetting members in Vietnam?

According to the latest regulations on securities, what are obligations of securities offsetting members in Vietnam?

Answer:

Pursuant to Clause 5 Article 56 of the Law on Securities in 2019 stipulating obligations of securities offsetting members in Vietnam as follows:

- Fully and punctually make deposits to VSDCC; contribute to the offsetting fund and risk management fund as prescribed by law;

- Establish and maintain the internal control and risk management system; separately manage assets and positions of investors;

- Fulfill other obligations prescribed by law and VSDCC’s charter.

What are securities activities in Vietnam?

I know that the new Law on Securities is effective now. I want to ask about the securities activities in Vietnam.

Answer:

Pursuant to Clause 14 Article 4 of the Law on Securities in 2019 stipulating as follows:

Securities activities include offering, listing, trading, investing in securities, providing securities-related services, disclosing information, public company administration and other activities provided for in this Law.

When shall tender offer be not mandatory in Vietnam?

I know that the National Assembly of Vietnam has just promulgated the new regulations on securities. I want to ask about cases, in which tender offer is not mandatory.

Answer:

Pursuant to Clause 2 Article 35 of the Law on Securities in 2019, tender offer is not mandatory to the entities mentioned in Clause 1 of this Article in the following cases:

- The purchase of shares or closed-end fund certificates results in the holdings specified in Clause 1 of this Article under an issuance plan approved by the General Meeting of Shareholders of the public company or the representative board of the closed-end fund;

- The acquisition of voting shares or outstanding closed-end fund certificates results in the holdings specified in Clause 1 of this Article as approved by the General Meeting of Shareholders of the public company or the representative board of the closed-end fund, in which cases the General Meeting of Shareholders or representative board of the closed-end fund shall identify the transferors and transferees;

- The transfer of shares between groups of companies, including business corporations, general companies, parent companies, subsidiaries does not result in cross ownership defined by the Law on Enterprises;

- Shares are acquired through auction of publicly offered securities or offering upon transfer of state capital or a state-owned enterprise’s stakes in another enterprise;

- Shares are acquired through division, acquisition or consolidation of enterprises;

- Giveaway, inheritance of shares or closed-end fund certificates;

- Transfer of shares or closed-end fund certificates under an effective court judgment, court decision or arbitral decision.

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