Minimum capital required for listed firms may rise 10 times

Recently there is a new amendment in the draft decree guiding the implementation of some articles of the Securities Law compiled by the State Securities Commission (SSC) which is:

• Companies that wish to quote their stocks at securities trading centres must have chartered capital of VND50 billion($3.125 million),instead of VND5 billion($312,500) like present,to meet the conditions to list their shares at securities trading centres and this also applies to

• Bond listing.

Other listing conditions include:

• operating at profit for two consecutive years before listing;

• shareholders who are members of the management board must commit to hold 50% of he shares within three years after listing;and

• at least 20% of the total shares must be owned by at least 50 outside shareholders (the ratio is at least 15% for companies that have capital of VND100 billion upwards). • Joint stock companies that are converted from state-owned firms must submit quotation documents to the securities trading centre within one year after the transformation. In addition,they must be operating at a profit in one year before listing.

For the quotation of fund certificates of securities investment funds or bonds of securities trading companies,the securities investment funds must be closed funds that have total fund certificates worth VND50 billion or more (par value) while securities trading companies must have chartered capital of at least VND50 billion.

This draft has been presented for consideration by related agencies. It is scheduled to be approved by year’s end,before the Securities Law takes effect on January 1,2007. (VietNamNet Bridge3/10/06)

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