Grounds for Possible Delisting and Elimination of the Ground
Listed companies and/or subsidiaries whose all or most of the assets are in the form of cash or short-term securities (Cash Company)
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Summary of the Rules
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Consideration criteria for the cause of delisting |
When the listed company and/or its subsidiary has disposed all or most of the assets used in the ordinary course of its business, thereby causing the listed company and/or its subsidiary to have all or most of the assets in form of cash or short-term securities (Cash Company) for more than 6 months from the date the SET receives the financial position report after the disposition of all or most of the assets of listed company and/or subsidiary which has been reviewed by the auditor (The financial position report*) *The company must submit a financial position report within 30 days from the date of asset disposal. During that period, SET may temporarily suspend trading on the company’s securities by posting SP (Suspension) sign until the company has already submitted complete and clear information as required by the SET. |
Procedures prior to possible delisting | The listed company must solve the Cash Company status within 6 months from the date that the Exchange receives the financial position report. Nevertheless, after the listed company submits the financial position report to the SET, the SET will announce that the company is a Cash Company and will post the NP (Notice Pending) sign and C (Caution) sign on its securities. *C (Caution) sign posting is used to warn the investors that there are circumstances which may affect the listed companies’ financial position and business operation. The securities under C sign must be purchased via cash balance account only. |
Procedures for action when the listed company is subject to possible delisting | To provide the company with clear guidelines for the elimination of the grounds for the possible delisting and encourage business rehabilitation, the listed company has the obligation to disclose the progress of the procedures under the rehabilitation process to the Exchange every quarter or within the same date as the financial statements submission due date in each quarter or in case there is any material progress, the listed company must disclose information immediately. In addition, SET has classified the process into 2 periods as the following.
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Request for period extension | The listed company can submit the request for the extension of 2nd period (Period for the repossession of qualifications in order to resume trading) once, and not exceeding one year. The listed company shall submit the request for extension 7 business days in advance prior to the due date, together with the notice clarifying and providing supporting reasons or information, which shows that the listed company possess all of the following qualifications:
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Consideration criteria for resume trading | The listed company can submit the request for the SET to consider allowing the listed company to resume trading as normal provided that the listed company possess all the qualifications pursuant to the SET’s Regulation on Listing of Ordinary Shares or Preferred Shares as Listed Securities on SET or mai (whichever the case). In regards to the minority shareholder distribution, the listed company shall comply with the regulation on maintain the listing company status (The minority shareholders shall not be less than 150 persons, holding the shares not less than 15% of the company’s paid-up capital). |
Announcement of the trading resumption | SET will announce information on the trading resumption 7 business days in advance before the commencement of trading of the listed company’s listed securities. |
Delisting | If the company is unable to eliminate all causes of delisting or repossess the qualifications in order to resume trading within specified deadline, SET will consider delisting and allow trading on the securities for 7 business days prior to delisting. During that period, NC sign is still posted and the securities must be purchased via cash balance account only. |