If a business does not report its financial situation for 3 years or more, it will be suspended from UPCoM.

According to HNX, the obligation to disclose audited financial statements (FS) of public companies is stipulated in Circular 96, guiding information disclosure on the stock market.

Accordingly, public companies must publish 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.

Enterprises that do not report financial statements for 3 years or more will be suspended from Upcom, picture 1 — HNX will suspend trading of shares of UPCoM enterprises that have not published audited financial statements for three consecutive financial years or more. (Photo: POD)

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 having its own accounting apparatus, it must publish the audited semi-annual financial statements within 5 days, but not more than 60 days, from the end of the first 6 months of the fiscal year.

In order to protect the rights and interests of investors, HNX has strengthened monitoring and detection of violations of the obligation to disclose financial statements of organizations registered for trading on the UPCoM market.

At the same time, HNX will handle violations according to the Regulations on Registration and Management of Unlisted Securities Transactions issued together with Decision No. 34/QD-HDTV dated November 16, 2022 of the Board of Members of the Vietnam Stock Exchange.

Accordingly, violating enterprises are subject to restrictions on trading 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.

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.

In the UPCoM market today, 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 registered trading organization 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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