What are the conditions for charter capital for commercial banks to become a special exchange member of Vietnam Stock Exchange?
- What are the conditions for charter capital for commercial banks to become a special exchange member of Vietnam Stock Exchange?
- What is the application for special exchange membership submitted by a commercial bank in Vietnam?
- What are the cases of mandatory cancellation of exchange membership and special exchange membership of the Stock Exchange?
What are the conditions for charter capital for commercial banks to become a special exchange member of Vietnam Stock Exchange?
According to the provisions of Clause 1, Article 99 of Decree No. 155/2020/ND-CP, the conditions for becoming a special exchange member are as follows:
Conditions for becoming special exchange members; conditions for State Treasury’s participation in debt instrument trade
1. In order to become a special exchange member, an applicant shall:
a) Be a commercial bank or foreign bank branch that has a contributed or provided charter capital not lower than the legal capital and is not put under special control as prescribed by regulations of law on credit institutions;
b) Be a depository member or open an account directly at Vietnam Securities Depository and Clearing Corporation (VSDCC);
c) Fulfill the requirements in terms of information technology infrastructure, professional processes and personnel under regulations of the Stock Exchange.
2. The State Treasury may participate in debt instrument trade if it:
a) Is a organization that opens an account directly at VSDCC;
b) Satisfies the conditions specified in Point c Clause 1 of this Article.
3. Special exchange members and State Treasury may only trade in their own debt instruments.
According to the above regulations, in order to become a special exchange member of the Vietnam Stock Exchange, a commercial bank must have a contributed or provided charter capital not lower than the legal capital.
At the same time, this bank is not put under special control as prescribed by regulations of law on credit institutions.
What are the conditions for charter capital for commercial banks to become a special exchange member of Vietnam Stock Exchange?
What is the application for special exchange membership submitted by a commercial bank in Vietnam?
Pursuant to Clause 1, Article 100 of Decree No. 155/2020/ND-CP stipulating the application for special exchange membership submitted by a commercial bank or foreign bank branch as follows:
Application for special exchange membership; State Treasury’s participation in debt instrument trade
1. An application for special exchange membership submitted by a commercial bank or foreign bank branch shall contain:
a) The documents specified in Clause 1 Article 98 of this Decree;
b) The establishment and operation license or the license for branch establishment issued by a competent authority;
c) The certificate of depository membership or the service contract between VSDCC and the bank or foreign bank branch on the direct account opening;
d) The description of information technology infrastructure, professional processes and personnel.
2. An application for participation in debt instrument trade submitted by State Treasury shall contain:
a) The documents specified in Point a and Point d Clause 1 of this Article;
b) The service contract between VSDCC and the State Treasury on the direct account opening.
Thus, the application for special exchange membership submitted by a commercial bank includes the documents specified in Clause 1, Article 100 above.
What are the cases of mandatory cancellation of exchange membership and special exchange membership of the Stock Exchange?
According to Clause 1, Article 106 of Decree No. 155/2020/ND-CP on mandatory cancellation of exchange membership and special exchange membership as follows:
Mandatory cancellation of exchange membership and special exchange membership
1. Cases of mandatory cancellation of exchange membership and special exchange membership:
a) The member fails to fulfill the obligations as requested by the Stock Exchange within 60 days from the day on which the Stock Exchange issues the notification of suspension of transactions as prescribed in Article 104 of this Decree;
b) The member fails to carry out transactions via the trading system of the Stock Exchange within 60 days from the day on which the Stock Exchange issues the decision to grant membership;
c) The causes of suspension are not eliminated within the suspension period;
d) The certificate of securities depository registration or depository member registration certificate is revoked;
dd) Other cases specified in the regulations of the Stock Exchange.
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Thus, a special exchange member of the Vietnam Stock Exchange will be mandatorily canceled the membership in the cases mentioned above.
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