Some Requirements on Business Conditions for Debt Trading Service

Generally, the Draft Circular partially supplements some more specific details related to capital conditions, internal management, and the operation process of debt trading enterprises, which Decree 69 has not explicitly stated. Specifically, as follows:

Upon establishment and throughout the investment and debt trading operation process, businesses that deal in debt brokerage services, debt trading consultancy; debt trading enterprises, and debt exchange service enterprises must not only fully meet the conditions as stipulated in Decree 69 but also publicly disclose their compliance with the debt trading business conditions.

Regarding capital regulations, the Draft Circular stipulates: Newly established debt trading enterprises, with the charter capital/investment capital recorded on the Business Registration Certificate, must be greater than or equal to the minimum capital levels specified in Decree 69 corresponding to each type of debt trading service business such as:

- Debt brokerage service enterprises, debt trading consultancy enterprises: 5 billion VND;- Debt trading enterprises: 100 billion VND;- Debt exchange service enterprises: 500 billion VND.

After the deadline to contribute sufficient capital, the owner's investment capital reflected on the financial statements of the enterprise at any time must be greater than or equal to the minimum capital levels stipulated in Decree 69 corresponding to each type of debt trading service business.

In cases where enterprises register to supplement their business areas with debt trading services, the owner's investment capital reflected on the financial statements of the enterprise in the nearest quarter at the time of registering to supplement the business areas with debt trading services must be greater than or equal to the minimum capital levels stipulated in Decree 69 corresponding to each type of debt trading service business.

Regarding internal management regulations, businesses must meet the following conditions:

- For newly established enterprises or enterprises supplementing their business areas with debt trading services, within 30 days before the commencement of operations or before starting to deploy debt trading services, the enterprises must have internal management regulations regarding the organization, internal regulations on debt trading service activities compliant with the Company Charter.- For debt exchange service enterprises, within 30 days and before officially starting debt exchange services, the competent authority of the enterprise must issue operational regulations for the debt exchange, ensuring that all the minimum contents stipulated in Decree 69 are met, such as:- Processes, procedures, responsibilities of exchange members, and the rights and obligations of the enterprise providing the debt exchange;- Conditions for debts projected to be listed on the exchange;- Organization of transaction management, supervision, including provisions for providing and storing information about the debts projected to be listed on the exchange;- Time, method of establishing and canceling transactions;- Payment methods and regulations ensuring payments for parties;- Dispute resolution.

Regarding debt exchange service enterprises, at the time of registering to supplement the business areas with debt exchange services, the enterprise must have:

- Documents proving at least 01 year of experience in debt trading services and the latest audited financial statements showing that the debt trading service revenue reaches at least 500 billion VND.- Documents proving adequate facilities, technical infrastructure, and information technology systems to receive, update, and provide information about debt trading activities among exchange participants.- At least 02 employees holding auditor certificates or at least 02 employees holding valuation certificates issued by the Ministry of Finance, having long-term labor contracts with the enterprise.

The internal regulations of the debt trading service enterprise must be publicly disclosed on the website or at the headquarters (if there is no website) of the debt trading service enterprise.

Enterprise managers, in addition to meeting the conditions stipulated in Decree 69, must also have documents proving that they meet the manager qualifications for debt trading service enterprises according to the regulations.

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