Unlisted SOEs must trade in UPCoM: Finance Ministry
State-owned enterprises (SOEs) must trade in the unlisted public companies market (UPCoM) within 90 days of an initial public offering (IPO) and before official listing, the Ministry of Finance said.
The Ministry of Finance's Circular 01/2015 / TT-BTC issued on January 5 has laid down regulations for unlisted securities operating in the local stock market.
The circular, which will become effective on March 1, 2015, replaces the ministry's earlier decision No 108 in 2008.
In this circular, the Ministry has specified that before listing on the two bourses of HCM City and the HN stock exchange, SOEs, who have issued an IPO before November 1, 2014, must trade in the UPCoM within a year, while SOEs with IPOs issued after that date can make transactions in Upcom within 90 days after getting the enterprise licences.
The circular also stated that public companies have to register on the Vietnam Securities Depository (VSD) and the State Securities Commission (SSC).
The circular added that other public companies, which had issued an IPO before July 1, 2011, but have not yet listed on the local bourses, must also trade in the UPCoM within a year.
Also, delisted companies must trade in the UPCoM within 30 days before relisting.
According to vov.vn, the Government of Viet Nam plans to equitize 532 SOEs during 2014 to 2015.
By the end of 2014, two giant SOEs—the Vietnam National Textile and Garment Group and Vietnam Airlines had issued their IPOs