According to the regulations, securities listed or centrally registered on centralized exchanges must comply with prices within the range of intraday price fluctuations. However, in reality, especially in the M&A process of businesses, the purchase and sale of shares is not only a matter of price but also comes with many other conditions related to the interests and obligations between the existing shareholder(s) and the new shareholder(s) expected to buy back to take over the Company. In addition, the process of negotiating and executing the transaction can be lengthy. These led to the fact that the price of securities at the time of agreement with the price at the expected time of the transaction was quite different and exceeded the range of price fluctuations prescribed at the time of the transaction. So what will these transactions need to be implemented to still be able to record the correct price and value of securities without violating the regulations?
ATA made this article to introduce regulations, settlement processes and issues related to the content "STOCK EXCHANGE OUT OF PRICE RANGE".
Legal regulation:
- 2019 Law on Securities
- Decree 155/2020/ND-CP;
- Circular 119/2020/TT-BTC;
- Decision 108/QD-VSD promulgate Regulations on registration and transfer of securities ownership at VSD.
Abbreviation:
|
GMS |
General Meeting of Shareholders |
SSC |
State Securities Committee |
|
SE |
Stock Exchange |
DM |
Depository Member |
|
BOD |
Board of Directors |
VSD |
Vietnam Securities Depository |
Comment: