Luat Viet

:: Question :: In 2009, the price of listed shares of many companies increased continuously. Therefore, such companies were required to provide explanation for such increase. There are many companies used the same explaining contents for different explanation. Please kindly provide the regulations on content of the explanation on increase of price of shares?

Answer:

On 15 Jan 2010, the Ministry of Finance issued Circular 09/2010/TT-BTC on disclosure of information on Securities Market (Circular 09). This Circular took affect on 1 March 2010 and replaced Circular 38/2007/TT-BTC (Circular 38). In respect of changes of price of listed shares (continuously increase or decrease) after March 1, 2010, it is required to comply with regulations on explanation and disclosure of information pursuant Circular 09. In respect of changes before March 1, 2010, the regulations of Circular 38 are still applied.

In details, before March 1, 2010, pursuant to Section IV of Circular 38, explanation on changes of price of listed shares of listing companies must be done within twenty four (24) hours from the time of receipt of a request from the State of Securities Committee (SSC), Ho Chi Minh Stock Exchange or Hanoi Stock Exchange (formally Hanoi Securities Trading Centre). The items disclosed must include the event which the competent authorities above requested be announced and the causes of the event, and the level at which such event has been authenticated in accordance with clause 3 of section IV of Circular 09.

As of March 1, 2010, pursuant to Article 2.1.6 Section IV Circular 09, when the ceiling price of listed shares increase or decrease during 05 continuous transaction turn that are not in accordance with general tendency of market or decrease during 10 continuous transaction turn, the listing organization must announce the cause of events affecting the changes of prices.   

In addition to that, in case that there is information relating to the listing organization that remarkable affects the prices of listed shares and it is required to define such information, the listing organization must announce respective information (Article 3 Section IV of Circular 09) and clarify the announced event, the causes of the event, and the level at which such event has been authenticated.

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