The Hanoi Stock Exchange (HNX) recently issued the Regulation on operation and management of exchange-traded fund (ETF) certificate transactions under Decision No. 383/QD-SGDHN.
In order to be listed in the HNX, fund certificates must be issued by ETFs registered with the State Securities Commission (SSC) and the Vietnam Securities Depository (VSD). Moreover, one of the two founding members of the funds must be a member of the HNX.
Under the Decision, the managing companies must submit complete and lawful dossiers for registration of listing ETF certificates. Within 10 working days after receiving such dossiers, the HNX will issue an approval decision.
If funds additionally issue or redeem their certificates through swap activities, the stock exchange will automatically make adjustments on the number of listings within one working day after receiving the notice of VSD.
In other cases, funds must submit applications and modifications will be made within two working days from the date of receipt of valid documents.
The regulation also lists nine cases in which ETF certificates will be put under warning and eight cases in which their certificates will be put under control. For example, the net asset value of a fund declines below VND 30 billion within three and six consecutive months, or below VND 10 billion in one and three months; tracking error exceeds 80 percent of the maximum deviation (15 percent); or the fund violates regulations on information disclosure.-
