Floor moving deadline extended until March 31

Under the Decree No 14/ND-CP dated January 19, 2007, February 8 (2009) will be the deadline for the southern bourse-listed firms with a chartered capital of less than 80 billion dong to move to the Hanoi Securities Trading Centre (HASTC).

However, Nguyen Son—head of State Securities Commission’s Market Development Committee said that the agency will allow the enterprises (less than 80 billion dong) three more months to complete procedures to increase capital to meet the listing terms of Ho Chi Minh Stock Exchange (STC).

The firms had two-years to prepare for an increase in chartered capital but due to a downslide in the stock market in 2008, several enterprises had filed for bankruptcy.

According to statistics, STC has 46 listed firms that have not reached the chartered capital of 80 billion dong according to the aforementioned decree and HASTC has six enterprises with the capital of less than 10 billion dong.

After three months from February 8, 2009, the enterprises that are unable to garner the required chartered capital will be forced to move to the listing floor.

As for STC listed firms, those with less than 80 billion dong capital will have to move to HASTC.

As for HASTC listed firms, those with less than 10 billion dong will have to move to the share trading registration market of unlisted public companies (or called UPCOM market).

In long-term, as the restructure of stock market changes, the government will modify and supplement Decree No 14 that will offer unique listing standards at stock exchange.

 

Category: Stocks