Securities listing activities are extremely important activities to establish contractual relationships between the Stock Exchange and the issuers with listed securities. This is considered an activity to demonstrate the honesty, publicity, and fairness in the information disclosure of securities issuers. So what is “listing securities”? What are the current legal regulations on the above activities? Then, let’s find out more about this issue with Lawyer X.
Legal grounds
Securities Law 2019
Decree 155/2020/ND-CP Guiding the Law on Securities
Consulting content
What is stock listing?
In Clause 24, Article 4 of the Securities Law 2019, is stipulated:
“Listing of securities means putting securities that are eligible for listing into trading on the trading system for listed securities.”
This is the process by which the Stock Exchange approves the issuer whose securities are allowed to be listed; Trading on the Stock Exchange provided that the company fully meets the standards set by the Stock Exchange.
Classification of securities listing
According to the provisions of current law, securities listing includes the following types:
– Initial listing is the permission for the issuer’s securities to register for the first time after the issuance to the public after meeting the listing criteria.
– Additional listing: is the approval process of the Stock Exchange for a listed company to list newly issued shares to raise capital; merger; pay dividends; exercise the rights of the wrong; convertible bonds into shares…
– Listing change occurs when the listed company changes the name of the securities to trade; mass; denominations; total value of listed securities.
– Re-listing: is the permitting an issuer to re-list previously delisted securities; for failing to meet listing maintenance standards.
– Full listing: is the listing of all shares after they have been issued to the public
A partial listing is the listing of a part of the total number of securities issued to the public of that issuance.
Purpose of stock listing
– Helps to determine the fair price of securities in the auction market.
– Then, provide investors with information about issuers.
– Build a stable stock market.
– Besides, strengthen public confidence in the stock market by selecting high-quality securities for trading.
– Increased accountability; obligations of the issuer in disclosing information; ensure honesty, openness, and fairness.
Securities listing process
Step 1: Submit registration documents to the Stock Exchange.
Step 2: The Stock Exchange appraises the dossier.
After that, step 3: Apply for an official listing license on the Stock Exchange.
Step 4: The Stock Exchange conducts the inspection.
Step 5: Approved by the Stock Exchange.
Lastly, step 6: Open listing.
Registration procedure
Within 30 days from the date of receipt of complete dossiers; The Stock Exchange is responsible for approving or denying listing registration.
The Stock Exchange provides specific guidance on the registration process in the Regulation on listing securities on the Stock Exchange.
Readers can refer to the following articles:
Conditions for offering bonds to the international market in Vietnam
What types of businesses can issue securities in Vietnam?
Frequently asked questions
After the listing is approved, the Stock Exchange will specify the time to list and invite the chairman of the board of directors, the members’ council, the general director, and the chief executive officer of the listed company. Then, to determine the first trading date on the Stock Exchange for securities that have been approved for listing.
– Profitability and stability of the company;
– Besides, public interest and ensuring the interests of the company;
– Organization and management of the company.
The application file for securities listing registration is specified in Circular 202/2015/TT-BTC Guiding the listing of securities on the Stock Exchange.
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