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Small listed firms get capital reprieve
Smaller firms with shares listed on the nation’s stock markets have been given a six-month reprieve from complying with higher minimum charter capital requirements which took effect this year.
The State Securities Commission has given firms until August to adhere to the provisions of Government Decree No 14/2007/ND-CP, which requires companies that list shares on the HCM City Stock Exchange to have charter capital of at least VND80 billion (US$4.6 million), and companies that list shares with the Ha Noi Securities Trading Centre to have charter capital of at least VND10 billion ($575,000).
The commission would give listed firms which register to increase charter capital up to six months from February 8 to finalise the increase. Firms listed in HCM City which fail to meet the charter capital requirements for that bourse will have their listings moved to the Ha Noi bourse, while enterprises with shares listed in Ha Noi that can’t meet the requirements will be relegated to the Ha Noi Securities Trading Centre’s new Unlisted Public Companies Market (UPCoM), their new project for formalising the over-the-counter (OTC) market.
"In case UPCoM has not been launched by that time, non-compliant firms on the Ha Noi bourse will be able to maintain their listings on this bourse, although they will be placed under the centre’s observation and subject to an investor alert," said Nguyen Son, the head of the commission’s market development department .
Son also said that enterprises listed on the Ha Noi bourse which had been profitable for the last two years and met the VND80 billion threshold would see their listings moved to HCM City bourse.
"The movement is part of our plan to restructure the stock exchange, aiming to bring greater transparency to investor trading," Son said.
"The commission will place specific sanctions on companies which intentionally delay movement of their listings," Son added.
VietNamNet, Viet nam news
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