How much is the legal capital of credit rating agencies in Vietnam? What are the rights of credit rating agencies in Vietnam?
How much is the legal capital of credit rating agencies in Vietnam?
According to the provisions of Article 11 of Decree No. 88/2014/ND-CP on the legal capital of credit rating agencies as follows:
Legal capital
1. The legal capital level of a credit rating agency for its credit rating activities is VND fifteen (15) billion.
2. The legal capital level prescribed in Clause 1 of this Article is exclusive of legal capital level for other business lines a credit rating agency may conduct in accordance with law.
Thus, the legal capital of the credit rating agency is VND 15 billion, but this legal capital level is exclusive of legal capital level for other business lines a credit rating agency may conduct in accordance with law.
How much is the legal capital of credit rating agencies in Vietnam? What are the rights of credit rating agencies in Vietnam?
What are the rights of credit rating agencies in Vietnam?
According to the provisions of Clause 1, Article 13 of Decree No. 88/2014/ND-CP on the rights of credit rating agencies as follows:
Rights and obligations of credit rating agencies
1. Credit rating agencies have the following rights:
a/ To provide services specified in Article 12 of this Decree;
b/ To receive charges for provision of the services specified in Article 12 of this Decree;
c/ To request organizations subject to credit rating to provide necessary documents and information relating to credit rating contracts.
Thus, credit rating agencies are entitled to perform the following services:
- Provision of information on credit rating;
- Training in and update of knowledge related to credit rating activities.
- Receiving charges for provision of the credit rating services.
- Requesting organizations subject to credit rating to provide necessary documents and information relating to credit rating contracts.
At the same time, the credit rating agency must ensure the performance of the following obligations:
- To provide credit rating services only when obtaining business eligibility certificates and to disclose information under Article 18 of this Decree;
- To adhere to the principles prescribed in Article 5 of this Decree when organizing the provision of credit rating services;
- To comply with this Decree and other relevant regulations when providing credit rating services;
- To ensure that the payment of salaries, wages and bonuses to analysts and members of credit rating councils does not depend on service charges and credit rating results of credit rating contracts in which these persons participate;
- To maintain all necessary conditions on capital, personnel and operation prescribed in this Decree and other relevant regulations;
- To take responsibility before law and rated organizations for credit rating results under signed contracts.
Are capital-contributing members of credit rating agencies allowed to contribute capital to establish other credit rating agencies in Vietnam?
According to the provisions of Point a, Clause 1, Article 10 of Decree No. 88/2014/ND-CP on the principles of capital contribution by members of credit rating agencies as follows:
Shareholders or capital-contributing members of credit rating agencies
1. The contribution of capital to establish a credit rating agency must comply with the Enterprise Law and adhere to the following principles:
a/ Organizations and individuals that have contributed over 5% of the paid-up charter capital of a credit rating agency may not contribute capital to establish, or purchase or hold stocks or capital contributions of, another credit rating agency;
b/ Organizations and individuals may not use state budget funds to contribute capital to establish credit rating agencies.
2. Credit rating agencies that have obtained business eligibility certificates under this Decree may not contribute capital to establish other credit rating agencies.
Thus, organizations and individuals that have contributed over 5% of the paid-up charter capital of a credit rating agency may not contribute capital to establish, or purchase or hold stocks or capital contributions of, another credit rating agency.
In addition, credit rating agencies that have obtained business eligibility certificates may not contribute capital to establish other credit rating agencies.
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