What is authority to handle violations for trading members at the Ho Chi Minh City Stock Exchange in Vietnam?

What is authority to handle violations for trading members at the Ho Chi Minh City Stock Exchange in Vietnam?

In Article 20 of the Regulations on trading members at the Ho Chi Minh City Stock Exchange issued together with Decision 04/2013/QD-SGDHCM, there are regulations on the authority to handle violations for trading members at the Ho Chi Minh City Stock Exchange as follows:

1. For violations that require a reminder or warning, the General Director of Ho Chi Minh City Stock Exchange decides on the basis of proposals from the professional departments of Ho Chi Minh City Stock Exchange;

2. For cases of trading suspension specified in Clauses 2 and 3, Article 22 of this Regulation, the General Director of Ho Chi Minh City Stock Exchange will issue a Decision to suspend trading activities of members immediately after the decision of the Vietnam Securities Depository Center or the State Securities Commission. In cases of suspension of remaining trading activities and forced termination of membership, the Membership Subcommittee of the Ho Chi Minh City Stock Exchange recommends a form of handling violations for the General Director to consider and decide.

3. In case a member commits a serious violation that exceeds the handling authority of the Ho Chi Minh City Stock Exchange, the Ho Chi Minh City Stock Exchange will report to the State Securities Commission to handle the violation in accordance with the law.

What are procedures for handling violations for trading members at the Ho Chi Minh City Stock Exchange in Vietnam?

In Article 21 of the Regulations on trading members at the Ho Chi Minh City Stock Exchange issued together with Decision 04/2013/QD-SGDHCM, there are regulations on procedures for handling violations for trading members at the Ho Chi Minh City Stock Exchange as follows:

1. When detecting a violation, Ho Chi Minh City Stock Exchange can make a record, collect evidence, and request members to explain the violation before deciding on the form of handling the violation or immediately suspending the violation to ensure safety and security for the trading system of Ho Chi Minh City Stock Exchange.

2. Based on the nature and severity of the violation, Ho Chi Minh City Stock Exchange decides on the appropriate form of handling the violation. Ho Chi Minh City Stock Exchange will announce on the information disclosure means of Ho Chi Minh City Stock Exchange the following forms of handling violations: revocation of trading representative cards, suspension of trading activities, disconnection of trading connections, termination of membership, and other violations that seriously affect the rights and interests of investors.

3. For the form of handling violations specified in Clause 5, Article 19 of this Regulation, Ho Chi Minh City Stock Exchange will report to the State Securities Commission before making an official decision.

4. Within fifteen (15) days from the effective date of the decision to handle violations, members have the right to request the Ho Chi Minh City Stock Exchange to review the decision to handle violations. Members are obliged to comply with the effective violation handling decision of the Ho Chi Minh City Stock Exchange until another decision is made. In case of refusal to review the decision to handle violations. Ho Chi Minh City Stock Exchange has a written response to members clearly stating the reason.

What is authority to handle violations for trading members at the Ho Chi Minh City Stock Exchange in Vietnam? (Image from the Internet)

What is suspension of members' trading activities at the Ho Chi Minh City Stock Exchange in Vietnam?

In Article 22 of the Regulations on members trading at the Ho Chi Minh City Stock Exchange issued together with Decision 04/2013/QD-SGDHCM there are regulations on suspension of trading activities of members at the Ho Chi Minh City Stock Exchange as follows:

Ho Chi Minh City Stock Exchange suspends part or all of a member's trading activities in the following cases:

1. Members do not comply with one of the obligations specified in Article 7 of this Regulation and depending on each case and the level of violation, Ho Chi Minh City Stock Exchange will consider suspending the member's trading activities.

2. Members temporarily suspend securities brokerage activities or all securities business activities and are approved by the State Securities Commission.

3. Members violate the provisions of Clause 2, Article 14 of Circular No. 210/2012/TT-BTC dated November 30, 2012 of the Ministry of Finance guiding the establishment and operation of securities companies, or are subject to Vietnam Securities Depository temporarily suspends clearing and settlement activities for securities transactions.

4. Necessary cases to protect investors' interests after approval by the State Securities Commission.

The time and scope of suspension of trading activities are specified in the decision to suspend trading of Ho Chi Minh City Stock Exchange.

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