Vietnam: During the period of control, what should not special control of securities trading organizations do?
- During the period of control, what should special control of securities trading organizations not do in Vietnam?
- When under control, what is the responsibility of the management of the securities trading organization in Vietnam?
- Where is information on the control and special control of securities trading organizations published in Vietnam?
During the period of control, what should special control of securities trading organizations not do in Vietnam?
Pursuant to Clause 3, Article 18 of Circular 91/2020 / TT-BTC, it is stipulated that during the period of special control and control, securities trading organizations may not do the following:
- A securities-trading institution shall not pay stock dividends to its shareholders, divide profits to its capital contributors or give bonuses to members of the Board of Directors, Board of Members, Board of Controllers, Director General (Director), Deputy Director General (Deputy Director), chief accountant, staff members and relevant individuals;
- The securities-trading organization must not convert unsecured debts into debts secured by its assets;
- The securities-trading organization must not purchase treasury stocks or redeem the stake from capital contributors;
- The securities-trading organization must not sign new and extended margin trading contracts, securities lending and purchase contracts, purchase transactions with a commitment to resell securities and contracts on provision of loans to customers without secured assets and continue carrying out these contracts and transactions; and must not sign the firm commitment underwriting agreement;
- The securities-trading organization must not establish new transaction offices, branches and representative offices, expand its operation area and provide new services;
- The securities-trading organization must not contribute capital to establish subsidiaries or invest in real estate; must avoid investment in high-risk assets or business operations that increase its risk value and reduce liquid capitals.
- A securities company shall manage only securities trading money by having its customers open accounts at commercial banks selected by the securities company.
* However, securities trading organizations may manage securities trading money according to the method of customers of securities companies opening accounts directly at commercial banks selected by securities companies to manage securities trading money.
Vietnam: During the period of control, what should not special control of securities trading organizations do?
When under control, what is the responsibility of the management of the securities trading organization in Vietnam?
Pursuant to Clause 1, Article 18 of Circular 91/2020 / TT-BTC, when under special control and control, the Board of Directors, the Members' Council, the company's president, the general director (director) of the securities trading organization have the following responsibilities:
- Develop a remediation plan and organize the implementation of that plan;
- Continue to manage, control, operate and ensure the safety of assets of securities trading organizations in accordance with the provisions of law;
- Take responsibility for issues related to the organization and operation of securities trading before, during and after the period of special control and control;
- Support and create conditions for other organizations to perform their responsibilities as prescribed in this Circular and perform other tasks at the written request of the State Securities Commission.
Where is information on the control and special control of securities trading organizations published in Vietnam?
Pursuant to Article 11 of Circular 91/2020 / TT-BTC which stipulates as follows:
Article 11. Liquid capital ratio and warning levels
1. The liquid capital ratio shall be determined according to the following rules:
2. The SSC shall issue the decision to issue warning to the securities-trading organization according to Article 13 of this Circular, place it under control or under special control according to Article 14 and Article 16 of this Circular respectively. Within 24 hours from the issuance of the decision, SSC shall post such decision on the website of SSC and the securities-trading organization shall publish information about such decision on the websites of SSC, VNX and the securities-trading organization.
Accordingly, information on the control and special control of securities trading organizations will be published by the State Securities Commission on the website of the State Securities Commission.
At the same time, securities trading organizations publish information about this decision on the websites of the State Securities Commission, Stock Exchanges, and securities trading organizations.
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