Vietnam: Determining the ratio of liquid capital of securities trading organizations? When are these organizations warned?
- How is the ratio of liquid capital of securities trading organizations determined? When are these organizations warned in Vietnam?
- How does a securities trading organization implement the reporting regime on the ratio of liquid capital periodically in Vietnam?
- When does a securities trading organization implement the reporting regime on abnormal liquid capital ratios in Vietnam?
How is the ratio of liquid capital of securities trading organizations determined? When are these organizations warned in Vietnam?
Pursuant to Article 11 of Circular 91/2020 / TT-BTC, the ratio of liquid capital of securities trading organizations is determined as follows:
And according to this regulation, the State Securities Commission shall issue a decision to put securities trading organizations in a state of warning as prescribed in Article 13 of this Circular.
Within twenty-four (24) hours of issuing the decision, the State Securities Commission shall publish information about this decision on the website of the State Securities Commission, securities trading organizations publish information about this decision on the website of the State Securities Commission, Stock Exchange, securities trading organization.
Specifically, Article 13 of Circular 91/2020 / TT-BTC stipulates:
Article 13. Warning
1. The SSC shall issue the decision to issue warning to a securities-trading organization in the following cases:
a) The liquid capital ratio reaches from 150% to below 180% during the reporting periods in three (03) consecutive months; or
b) The liquid capital ratio that has been examined or audited by an accredited audit organization reaches from 150% to below 180%; or
c) The prudential indicator report about which the accredited audit organization issue a dissenting or contrary opinion, or a disclaimer of opinion, or fails to give any opinion, or issues a qualified opinion, the liquid capital ratio is from 150% to below 180%, if the exceptions are not included in the liquid capitals.
2. The warning period begins when a warning is issued against the securities-trading organization and ends when SSC issues a decision to lift the warning.
3. SSC will consider lifting the warning when the securities-trading organization’s liquid capital ratio reaches 180% or more in three (03) consecutive months, the liquid capital ratio during the last reporting period has been audited by an accredited audit organization, and the securities-trading organization has submitted a report according to Appendix XI hereof to SSC.
How does a securities trading organization implement the reporting regime on the ratio of liquid capital periodically in Vietnam?
Pursuant to Clause 1, Article 12 of Circular 91/2020 / TT-BTC, there are guidelines for the implementation of the periodic reporting regime as follows:
Article 12. Liquid capital reporting
1. Periodic reporting
a) The securities-trading organization shall submit monthly reports on prudential indicator made using the form provided in the Appendix V or VI enclosed herewith to the SSC. Electronic reports shall be sent via the database system within 07 working days from the end of the month.
b) The securities-trading organization must submit prudential indicator reports of 30 June and 31 December made using the form provided in the Append ix V or VI enclosed herewith and publish the reports on its website after they have been examined and audited by an accredited audit organization. These reports shall be sent to SSC via the database system and disclosed together with the examined biannual financial statements and audited annual financial statements.
- Every month, securities trading organizations must send the State Securities Commission a report on the financial safety ratio at the end of the month according to the form specified in Appendix V issued together with Circular 91/2020 / TT-BTC or Appendix VI issued together with Circular 91/2020 / TT-BTC.
The report must be submitted by electronic information file via the database system within seven (07) working days from the end of the month.
- Securities trading organizations must send to the State Securities Commission and simultaneously publish information on the website of securities trading organizations reporting financial safety ratios at June 30 and December 31 according to the form specified in Appendix V issued together with Circular 91/2020 / TT-BTC or Appendix VI issued together with the Circular Private 91/2020/TT-BTC after being reviewed and audited by an approved auditing organization.
These reports must be sent to the State Securities Commission through the database system and published along with the time of publication of reviewed semi-annual financial statements and audited annual financial statements.
Vietnam: Determining the ratio of liquid capital of securities trading organizations? When are these organizations warned?
When does a securities trading organization implement the reporting regime on abnormal liquid capital ratios in Vietnam?
Pursuant to Clause 2, Article 12 of Circular 91/2020/TT-BTC stipulates that securities trading organizations shall implement the reporting regime on the abnormal liquid capital ratio in the following cases:
Article 12. Liquid capital reporting
…
2. Unscheduled reporting
a) Since its liquid capital ratio falls below 180%, a securities-trading organization shall submit an liquid capital ratio report made using the form provided in the Appendix V or VI enclosed herewith to the SSC twice a month (on the 15th and 30th). Reports shall be sent electronically via the database system within 03 working days after the 15th and 30th every month.
b) Since its liquid capital ratio falls below 150%, a securities-trading organization shall submit a weekly report on liquid capital ratio made using the form provided in the Appendix V or VI enclosed herewith to the SSC. Reports shall be sent electronically via the database system before 16:00 every Friday.
c) Since its liquid capital ratio falls below 120%, a securities-trading organization shall submit a weekly report on liquid capital ratio made using the form provided in the Appendix V or VI enclosed herewith to the SSC. Reports shall be sent electronically via the database system before 16:00 every day.
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