Headlines 09/12/2020 16:39 CH

Three cases cause securities companies to go into administration

Thùy Liên

Ministry of Finance promulgates the Circular No. 91/2020/TT-BTC regarding financial prudence indicators and actions against securities entities failing to meet financial prudence indicators.

According to this document, State Securities Commission issues the decision to place companies into administration (the administration duration is not over 12 months) in the following cases:

 (1) Liquidity ratio ranges from 120% to below 150% in all reporting periods for 3 consecutive months;

 (2) Liquidity ratio examined or audited by accredited audit organizations ranges from 120% to under 150%;

 (3) Report on the liquidity ratio made by an accredited audit organization shows one of the following opinions:

+ Unmodified and unqualified opinions (or adverse opinions);

+ Disclaimer opinions (or inability opinions);

+ Qualified opinions excepting several reporting indicators, based on which liquidity ratio ranges from 120% to under 150% in case of excepting impacts caused by exceptions from liquid capital.     

Within the 4-month maturity duration after the date of going into administration, Stock Exchanges may suspend part of transactions of any of securities subsidiaries failing to deal with their situation.

 (In the existing legislation, such duration is 6 months).

Circular No. 91/2020/TT-BTC is entering into force on January 1, 2021.

>> CLICK HERE TO READ THE ARTICLE IN VIETNAMESE

166

More headlines

Most Viewed

Address: 17 Nguyen Gia Thieu street, Ward Vo Thi Sau, District 3, Ho Chi Minh City, Vietnam.
Phone: (+84)28 3930 3279 (06 lines)
Email: info@ThuVienPhapLuat.vn

Copyright© 2019 by THƯ VIỆN PHÁP LUẬT
Editorial Director: Mr. Bui Tuong Vu

DMCA.com Protection Status