Which entities supervise transactions of listed securities in Vietnam? What are the methods for securities transaction supervision by the State Securities Commission of Vietnam?
Which entities supervise transactions of listed securities in Vietnam?
According to the provisions of Article 2 of Circular No. 95/2020/TT-BTC, the entities of supervision of transactions of securities listed on the securities market include:
- State Securities Commission of Vietnam (SSC);
- Vietnam Exchange (VNX);
- Subsidiary companies of VNX: Hanoi Stock Exchange (HNX), Ho Chi Minh City Stock Exchange (HOSE) (hereinafter referred to as “Stock Exchanges”);
- Vietnam Securities Depository and Clearing Corporation (VSDCC);
- Trading members (excluding special trading members on the derivatives and government bond market).
Supervised entities that are organizations and individuals participating in the transaction and provision of services relevant to securities transactions on the securities market, including:
+ Listed organizations; organizations registered for transaction;
+ 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;
+ Investors that conduct securities transactions;
+ Supervisory banks, commercial banks that open securities accounts;
+ Relevant entities.
Which entities supervise transactions of listed securities in Vietnam? What are the methods for securities transaction supervision by the State Securities Commission of Vietnam?
What are the methods for securities transaction supervision by the State Securities Commission of Vietnam?
According to the provisions of Article 6 of Circular No. 95/2020/TT-BTC on methods for securities transaction supervision by the State Securities Commission of Vietnam as follows:
- Supervision according to information from the following sources:
+ Supervision reports submitted by VNX and its subsidiary companies, VSDCC and its members;
+ Reports submitted by listed and registered public companies;
+ Information provided by organizations and individuals participating in the securities market;
+ Information on the media and securities-related rumors;
+ Other sources of information.
- Pursuant to the reports and information mentioned in Clause 1 of this Article, transaction data of VNX, its subsidiary companies and VSDCC, SSC shall analyze the transactions that are suspected of violating regulations of law on securities and the securities market.
- Carry out ad hoc inspections of supervised entities through discovery of suspicious transactions reported by VNX, its subsidiary companies, trading members, VSDCC, its members, organizations and individuals that participate in transactions and provide securities transaction-related services.
Responsibilities and entitlements of the State Securities Commission of Vietnam in securities transaction supervision?
According to Article 4 of Circular No. 95/2020/TT-BTC, the responsibilities and entitlements of the State Securities Commission of Vietnam are as follows:
- 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.
- 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 VNX 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, VNX 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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