Management tightened over private offerings
16:00 | 06/01/2010

VGP - The Vietnamese Government will tighten management over activities relating to private stock offerings since February 25, according to its recent decree.

All advertisements of private offerings is forbidden before or during sale

The applicable subjects of the decree are joint-stock enterprises set up and operate in accordance with Vietnamese laws, including enterprises transformed into joint-stock companies, except for wholly State-owned enterprises.

The decree also covers the imposition of administrative penalties against the private offerings done by these enterprises.

No joint-stock companies set up in accordance with foreign laws are permitted to conduct the private offerings in Việt Nam, except for cases stipulated in the international treaties that Việt Nam is a member to.

To do private placements, the securities owners must meet some certain conditions.

Private offerings shall be carried out at the interval of at least six months and in conformity with regulations on capital contribution and forms of investment in case foreign investors engage in.

Prior to and during the time for private offerings, all advertisements shall be forbidden on mass media. A break of the rule shall be punished VND 40-50 million.

Within ten days since the close of the offering, the seller must report the results and submit the list of shareholders to State competent bodies, and publicize on its website.

By Hải Minh

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