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HNX: Regulations on share repurchase or sale of treasury shares of listed companies
HNX: Regulations on share repurchase or sale of treasury shares of listed companies
Based on Circullar No.74/2011/TT-BTC issued by the Ministry of Finance on 01/06/2011 guiding securities trading, on 5/3/2012, the HNX announces the regulations on trading treasury shares. Accordingly, listed companies who want to repurchase shares for treasury stock or sell treasury shares must comply with the following rules:
- Collar:
Collar applied to transactions of treasury shares is 50% of collar of the trading day. The present collar of the trading day on HNX is ±7%, thus, the collar applied to the share repurchase or sale of treasury shares of listed companies is ± 3,5%.
- Trading volume relating to share repurchase/sale of treasury shares:
During each trading day, the listed company is allowed to place buy/sell order with the minimum volume of 3% and maximum volume of 5% of total expected treasury shares (excluding the volume cancelled by the listed company). In case the listed company wants to trade more than 5% of the total expected volume or trade in big lot via negotiation, they must gain approval from the HNX.
- Change in share repurchase/sale of treasury shares plan:
The listed company is not allowed to change the plan on share repurchase or sale of treasury shares which has been reported and disclosed. In case of force majeur, the company must report to the State Securities Commission (SSC) and get the approval from the SSC at least 03 days before the change. The listed company has to announce the reasons for the change on mass media, and report to the SSC within 24 hours since the decision on changing the share repurchase or sale of treasury shares plan is approved by the company.
Effective date for Regulations on share repurchase or sale of treasury shares of listed companies: 26/03/2012
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