On November 15, 2024, the Government promulgated Decree No. 152/2024/ND-CP, which amends several provisions of Decree No. 62/2015/ND-CP detailing and guiding the implementation of certain provisions of the Civil Enforcement Law (hereinafter referred to as "Decree No. 152"). A key highlight of Decree No. 152 is the introduction of new regulations governing the handling of securities, shares or capital contributions in enterprises, including those listed or registered for trading on stock exchanges.
1.Procedures for processing listed or pending listed securities on stock exchanges
- The securities are frozen at the Vietnam Security Depository and Clearing Corporation(“VSDC”);
- The enforcement officer issues a decree for the compulsory seizure and disposal of securities;
- The party has the right to negotiate the sale of securities and must notify the enforcement agency in writing within 5 working days;
- The VSDC hands over the seized securities to the civil enforcement authority;
- The enforcement officer shall execute the sale of the securities within 2 working days of the transfer's completion, in accordance with any agreement reached with the party concerned. Failing such an agreement, the enforcement officer shall sell the securities via a market order at the prevailing reference price.
The authorization to transfer securities to the enforcement agency and the implementation of an automated market order placement system will enhance efficiency and streamline the process of handling listed and registered securities.
2. Process of handling securities that are not listed or traded, those registered at VSDC but not sold, and those that are unlisted, unregistered stocks, shares, and capital contributions
- The process for disposing of these securities will be analogous to that of other assets, requiring an auction to sell the securities in compliance with the regulations;
- Upon the successful conclusion of the auction, the enforcement agency will issue a written order to VSDC or the securities issuer to transfer ownership of the securities to the buyer.
Decree No. 52 takes effect from January 1, 2025.
Comment: