Trading of stocks of enterprises that do not publish financial statements for 3 years will be suspended

According to the Hanoi Stock Exchange (HNX), it will soon suspend the stocks of enterprises on the UPCoM floor that have not published audited financial statements for 3 consecutive fiscal years or more.

Specifically, according to Circular 96 guiding information disclosure on the stock market, public companies must disclose audited annual financial statements within 10 days from the date the auditing organization signs the audit report, but not exceeding 90 days from the end of the fiscal year.

In addition, large-scale public companies must disclose audited semi-annual financial statements within 5 days from the date the auditing organization signs the audit report, but not exceeding 45 days from the end of the first 6 months of the fiscal year.

In case a large-scale public company is the parent company of another organization or is a superior accounting unit with a subordinate accounting unit and its own accounting apparatus, it must disclose the audited semi-annual financial statements within 5 days, but not exceeding 60 days, from the end of the first 6 months of the fiscal year.

Finance - Banking - Will suspend trading of stocks of enterprises that do not publish financial statements for 3 years — Organizations that register for transactions and submit financial reports more than 45 days late will be placed on restricted trading list.

In order to monitor compliance with information disclosure obligations of organizations registering for trading, in order to protect the rights and interests of investors, HNX strengthens monitoring and detection of violations of information disclosure obligations of financial statements of organizations registering for trading on the UPCoM market, and handles violations according to the Regulations on Registration and Management of Unlisted Securities Transactions issued together with Decision No. 34 of the Board of Members of the Vietnam Stock Exchange.

Accordingly, the trading of shares of organizations that register for trading and are late in submitting audited annual financial statements or reviewed semi-annual financial statements more than 45 days from the deadline for information disclosure as prescribed will be restricted.

At the same time, suspend trading of shares of organizations registered for trading in restricted trading areas without taking remedial measures, seriously violating information disclosure obligations, and failing to publish audited financial statements for 3 consecutive fiscal years or more.

Currently, on the UPCoM market, there are quite a few businesses that are restricted from trading because they have not yet published their audited financial statements. HNX has asked the businesses to explain the reasons and propose solutions to overcome the violations.

In case the organization registering for trading does not take measures to remedy the cause leading to the stock being put on the restricted trading list, HNX will suspend trading according to the regulations and instructions of the Vietnam Stock Exchange .

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