What other tasks and powers does the State Securities Commission of Vietnam perform besides supervising securities transactions?
What is securities transaction?
Pursuant to Clause 1, Article 3 of Circular 95/2020/TT-BTC, “securities transaction” means the purchase or sale of securities through securities transaction systems of a Stock Exchange.
In particular, according to the provisions of Clause 26, Article 4 of the 2019 Law in Securities in Vietnam, securities transaction systems include the systems for transaction of listed securities and the systems for transaction of unlisted securities, organized and run by Vietnam Stock Exchange (VSE) and its subsidiaries.
What other tasks and powers does the State Securities Commission of Vietnam perform besides supervising securities transactions?
What are the contents of securities transaction supervision by the State Securities Commission of Vietnam (SSC)?
Pursuant to Article 5 of Circular 95/2020/TT-BTC on this content as follows:
(1) On the basis of reports submitted by trading members, VSE, its subsidiary companies and Vietnam Securities Depository and Clearing Corporation (VSDCC), supervision results at SSC and other sources of information, SSC shall analyze signs of violations in suspicious transactions and take appropriate actions.
(2) Supervise the operation of VSE and its subsidiary companies in organization and supervision of securities transactions in each market region under its management according to Section 2 Chapter II of Circular 95/2020/TT-BTC.
(3) 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 95/2020/TT-BTC.
(4) Take charge and cooperate with VSE, its subsidiary companies and VSDCC in analyzing transactions that may affect the securities market; ensure lawful rights and interests of investors and market stability.
(5) 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 95/2020/TT-BTC. To be specific:
- 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.
What other tasks and entitlements does the State Securities Commission of Vietnam perform besides supervising securities transactions?
Pursuant to the provisions of Article 4 of Circular 95/2020/TT-BTC on the responsibilities and entitlements of the State Securities Commission of Vietnam as follows:
Responsibilities and entitlements of SSC
1. Supervise securities transactions on the securities market in order to detect, prevent and take actions against use of internal information for securities trade, manipulation of the securities market and other violations against regulations of law on securities transactions.
2. Request supervised entities to report, provide explanation, information and documents about their securities transactions.
3. Supervise investors' compliance to regulations of law on securities transactions.
4. Issue warnings against suspicious transactions and actions in order to prevent violations against regulations of law on securities transactions by supervised entities.
5. Consider approving criteria established by VSE for securities transaction supervision and supervision reporting applied to trading members; position limits applied to derivatives market; method for calculation of initial margin asset ratio (AR); AR supervision thresholds or frequency of supervision of margin depositing established by VSDCC.
6. Promulgate regulations on cooperation in securities transactions between SSC, VSE and its subsidiary companies, VSDCC and trading members.
7. dd) Take charge and cooperate with relevant units in inspecting securities transactions and provision of relevant services.
8. Submit reports to the Ministry of Finance on securities transaction supervision when requested.
Thus, in addition to supervising securities transactions, the State Securities Commission of Vietnam also performs the following tasks and entitlements:
- Request supervised entities to report, provide explanation, information and documents about their securities transactions.
- Supervise investors' compliance to regulations of law on securities transactions.
- Issue warnings against suspicious transactions and actions in order to prevent violations against regulations of law on securities transactions by supervised entities.
- Consider approving criteria established by VSE for securities transaction supervision and supervision reporting applied to trading members; position limits applied to derivatives market; method for calculation of initial margin asset ratio (AR); AR supervision thresholds or frequency of supervision of margin depositing established by VSDCC.
- Promulgate regulations on cooperation in securities transactions between SSC, VSE and its subsidiary companies, VSDCC and trading members.
- Take charge and cooperate with relevant units in inspecting securities transactions and provision of relevant services.
- Submit reports to the Ministry of Finance on securities transaction supervision when requested.
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