New circular aims to improve stock market transparency

Headquarters of The Ministry of Finance - (Photo: MoF)

It provides guidelines for the reorganisation of the stock trading market, bond trading market, derivatives trading market, and trading market for other types of securities in Vietnam.

Under Circular 69, the Ho Chi Minh Stock Exchange (HoSE) is mandated to reorganise the trading market for stocks, fund certificates, and covered warrants in accordance with the Securities Law and its associated regulations. The reorganisation process is expected to be completed no later than December 31, 2026, ensuring compliance with the stipulated legal framework.

As part of the reorganisation efforts, the HoSE is set to receive and review listing registration applications for new stock trading from eligible organisations. To be eligible, organisations must meet the listing conditions outlined in Decree No 155/2020/NĐ-CP, dated December 31, 2020, and possess contributed charter capital of at least 120 billion VND (4.9 million USD) at the time of listing registration. The deadline for receiving and reviewing these applications is set before July 1, 2025.

Circular 69 also includes provisions concerning the transfer of shares of listed organisations from the Hanoi Stock Exchange (HNX) to the HoSE. By December 31, 2025, the HoSE is required to complete the process of receiving shares from HNX-listed organisations. This transfer aims to streamline and consolidate securities trading activities within a unified market.

Furthermore, the circular introduces amendments to certain clauses of Circular 57. It specifies that HNX will receive and review listing registration applications from eligible organisations before July 1, 2025. Eligible organisations must meet the listing conditions defined in Decree No 155 and possess a contributed charter capital of at least 30 billion VND at the time of listing registration.

Starting from July 1, 2025, HNX will no longer accept new stock listing registration applications from organisations. The transfer of shares from HNX to HoSE for listed organisations is expected to be completed by December 31, 2025.

In cases where an organisation has submitted a stock listing registration application to HNX before July 1, 2025, but the listing has not been approved, HNX is responsible for transferring the organisation's listing registration dossier to HoSE before July 8, 2025. This allows HoSE to continue processing the organisation's listing registration in accordance with the legal regulations.

If the HoSE receives a listing registration dossier from an organisation with contributed charter capital of less than 120 billion VND at the time of listing registration and the listing has not been approved by the effective date of Circular 69, the HoSE must transfer the organisation's listing registration dossier to the HNX for further processing according to legal regulations. The deadline for transferring listing registration documents is within five working days from the effective date of Circular 69.

Circular 69/2023/TT-BTC will play a crucial role in restructuring the securities trading markets in Vietnam, promoting transparency, and aligning with international standards. The measures outlined within the circular aim to enhance the efficiency and effectiveness of securities trading, bolster investor confidence, and contribute to the overall development of Vietnam’s capital market.