What is the State Securities Commission of Vietnam? What are the contents of supervision by the State Securities Commission of Vietnam?
What is the State Securities Commission of Vietnam?
Pursuant to Clause 1, Article 9 of the 2019 Law on Securities of Vietnam defines the State Securities Commission is affiliated to the Ministry of Finance and is responsible for advising and assisting the Minister of Finance in state management of securities and the securities market, organizing implementation of regulations of law on securities and the securities market as authorized by the Minister of Finance.
What is the State Securities Commission of Vietnam? What are the contents of supervision by the State Securities Commission of Vietnam? (Image from the internet)
What are the methods for securities trading supervision by the State Securities Commission of Vietnam?
The methods for securities trading supervision by the State Securities Commission (SCC) according to Article 6 of Circular No. 95/2020/TT-BTC are as follows:
- Supervision according to information from the following sources:
+ Supervision reports submitted by VNX and its subsidiary companies, VSDCC and its members;
+ Reports submitted by listed and registered public companies;
+ Information provided by organizations and individuals participating in the securities market;
+ Information on the media and securities-related rumors;
+ Other sources of information.
- Pursuant to the reports and information mentioned in Clause 1 Article 6 of Circular No. 95/2020/TT-BTC, transaction data of Vietnam Exchange (VNX), its subsidiary companies and Vietnam Securities Depository and Clearing Corporation (VSDCC), SSC shall analyze the transactions that are suspected of violating regulations of law on securities and the securities market.
- Carry out ad hoc inspections of supervised entities through discovery of suspicious transactions reported by VNX, its subsidiary companies, trading members, VSDCC, its members, organizations and individuals that participate in transactions and provide securities transaction-related services.
What are the contents of supervision by the State Securities Commission of Vietnam?
The contents of supervision by the State Securities Commission are specified in Article 5 of Circular No. 95/2020/TT-BTC including:
- On the basis of reports submitted by trading members, VNX, its subsidiary companies and VSDCC, supervision results at SSC and other sources of information, SSC shall analyze signs of violations in suspicious transactions and take appropriate actions.
- Supervise the operation of VNX and its subsidiary companies in organization and supervision of securities transactions in each market region under its management according to Section 2 of this Chapter.
- Supervise the operation of VSDCC in management of position limits on the derivatives market, AR or initial margin depositing according to Section 3 Chapter II of Circular No. 95/2020/TT-BTC.
- Take charge and cooperate with VNX, its subsidiary companies and VSDCC in analyzing transactions that may affect the securities market; ensure lawful rights and interests of investors and market stability.
- Supervise provision of services relevant to securities transactions by the entities specified in Points b, c, d, dd, g, h Clause 2 Article 2 of Circular No. 95/2020/TT-BTC as follows:
+ Trading members, special trading members;
+ Members of VSDCC, including depository members and offsetting members;
+ Securities investment funds and securities investment fund management companies, investment companies;
+ Stock Exchanges, VSDCC when providing services relevant to securities transactions, clearing and payment;
+ Supervisory banks, commercial banks that open securities accounts;
+ Relevant entities.
Nguyễn Thị Hồng Nhung
