What are conditions for membership approval to trade at the Ho Chi Minh Stock Exchange in Vietnam?

What are conditions for membership approval to trade at the Ho Chi Minh Stock Exchange in Vietnam?

In Article 3, Regulations on trading members at the Ho Chi Minh Stock Exchange, issued together with Decision 04/2013/QD-SGDHCM, there are regulations on conditions for membership approval to trade at the Ho Chi Minh Stock Exchange as follows:

1. Being a securities company licensed by the State Securities Commission to conduct securities brokerage activities ;

2. Being approved by the Vietnam Securities Depository Center as a depository member;

3. Having sufficient technical and material facilities to serve the operation, including:

a. Having an information technology system that meets the requirements of the Ho Chi Minh Stock Exchange;

b. Having software for transaction and payment activities that meets the technical and professional requirements in accordance with the law and the Ho Chi Minh Stock Exchange;

c. Join the data transmission line at the request of the Ho Chi Minh Stock Exchange;

d. Having a backup system in case of server , transmission line or grid failure ;

D. There is a device to provide transaction information of the Ho Chi Minh Stock Exchange to serve investors;

e. Having an electronic information page and other information disclosure means to ensure the disclosure of information on securities trading and disclosure of securities companies ;

4. Having a leadership team and a staff of capable and experienced employees in the fields of finance, securities , and information technology staff who meet the prescribed conditions:

a. The Director ( General Director), Deputy Director (Deputy General Director), personnel of the internal audit and internal control departments must meet the conditions prescribed by law for these positions;

b. The staff of information technology must have enough qualifications to manage, operate and monitor the information technology system , have professional qualifications in information technology and have appropriate professional certificates. suitable for each of the following positions: Network system administrator , operating system administrator, information technology system security and database administrator.

5. Having a trading representative at the Ho Chi Minh Stock Exchange;

6. In the case of a securities company that used to be a member of the Ho Chi Minh Stock Exchange, it is only allowed to re-register as a member:

a. After two (02) years from the date of voluntary membership termination.

b. After five (05) years from the date of termination of the mandatory membership.

7. Other conditions prescribed by Ho Chi Minh Stock Exchange.

What is dossier for registration of trading members at the Ho Chi Minh Stock Exchange in Vietnam?

In Clause 1, Article 4, Regulations on trading members at the Ho Chi Minh Stock Exchange, issued together with Decision 04/2013/QD-SGDHCM, stipulate dossier for registration of trading members at the Ho Chi Minh Stock Exchange is as follows:

1. Dossier for registration of trading members includes:

a. An application for registration as a member, made according to the form specified in Appendix 01 issued with this Regulation;

b. A written commitment to become a member, made according to the form specified in Appendix 02 issued with this Regulation;

c. Charter of a securities company according to the form specified in Appendix XI of Circular No. 210/2012/TT-BTC dated November 30, 2012 of the Ministry of Finance guiding the establishment and operation of securities companies;

d. A valid copy of the establishment and operation license of the securities company ;

D. A valid copy of the certificate of registration of securities depository activities;

e. A valid copy of the depository member's certificate;

g. Professional processes and professional guidance documents according to the list specified in Appendix 03 to this Regulation;

h. Regulations and processes on internal control , internal audit and risk management of securities companies in accordance with the provisions of Circular No. 210/2012/TT-BTC dated 30/11/2012 of the Ministry of Finance guiding the establishment and operation of securities companies;

i. Code of professional ethics of securities companies:

k. A valid copy of the ID card or passport together with the Personal Information Sheet with a photo stamped with a border crossing according to the form specified in Appendix IV, Circular No. 210/2012/TT-BTC dated 30/11/2012 of the Ministry of Finance guiding the establishment and operation of securities companies by : Members of the Board of Directors (Board of Members), the Supervisory Board; Board of Directors (Board of General Directors), Branch Directors and heads of professional departments; personnel of internal control , internal audit, risk management and securities practitioners;

l. A valid copy of the securities practice certificate of the Director (General Director), Deputy Director (Deputy General Director) and securities practitioners of the securities company :

m. Valid copies of diplomas and certificates of internal audit and internal control personnel specified in Articles 36 and 37 of Circular No. 210/2012/TT-BTC dated November 30, 2012 of the Ministry of Finance guiding guiding the establishment and operation of securities companies ;

n. Authorization letter to disclose information according to the form specified in Appendix I issued together with Circular No. 52/2012/TT-BTC dated April 5, 2012 of the Ministry of Finance guiding on information disclosure on the stock market;

o. Decision on appointment of the Board of Directors (Board of Directors), internal control personnel, internal audit and risk management:

p. Dossier for issuance of transaction representative cards as prescribed in Chapter V of this Regulation;

q. The document describes the information technology system and the information technology operating procedures and regulations:

- Documents describing the server system (database server , transaction server, information disclosure server and other machines), backup equipment, workstation system, system network, software, security policies, authorization of use, accompanied by explanatory diagrams;

- Documents describing the power source, backup power source, power backup system, lightning protection system, fire prevention and fighting system;

- Information about information technology officers, enclosed with valid copies of diplomas and certificates in information technology ; The process of operating the trading system ; Process of handling and troubleshooting; Data backup, archiving and recovery procedures.

r. Other documents proving that the securities company has met the conditions for membership.

What are procedures for membership approval at the Ho Chi Minh Stock Exchange in Vietnam? 

In Article 5, Regulations on trading members at the Ho Chi Minh Stock Exchange, issued together with Decision 04/2013/QD-SGDHCM, there are regulations on procedures for membership approval at the Ho Chi Minh Stock Exchange as follows:

1. A securities company that registers as a member of the Ho Chi Minh Stock Exchange must satisfy the conditions stated in Article 3 of this Regulation and submit a member registration dossier to the Ho Chi Minh Stock Exchange in accordance with the provisions of Article 4 of this Regulations. 

2. Within one (01) working day from the date of receiving the application for membership registration, the Ho Chi Minh Stock Exchange shall post information about the receipt of the application on the information disclosure media of the Ho Chi Minh Stock Exchange.

3. Within eight (08) working days from the date of receipt of the member registration file, the Ho Chi Minh Stock Exchange shall send a written request to the securities company to amend and supplement the dossier (if necessary). During the membership review period, if there are any changes compared to the original dossier, the securities company registered as a member must immediately supplement the dossier in accordance with regulations.

4. Within three (03) working days from the date on which the Ho Chi Minh Stock Exchange receives the complete and valid dossier and a written report from the securities company on the successful construction of at least 01 data transmission line. If the data (private leased channel or dial-in phone) connects to the Ho Chi Minh Stock Exchange and successfully installs software to transmit and receive transaction data , the Ho Chi Minh Stock Exchange will issue a written notice of approval to the securities company. k swap installation of machinery and equipment and enter the trading floor.

5. Within ten (10) working days from the date the securities company completes and meets the requirements of transaction testing, successfully establishes a connection to retrieve data as required by the Ho Chi Minh Stock Exchange , the Ho Chi Minh Stock Exchange will survey the material and technical facilities, the implementation of the issued procedures of the securities company . Ho Chi Minh Stock Exchange. The Ho Chi Minh Stock Exchange will issue a written notice on the approval of the principle of membership for the securities company , and at the same time notify the fees that the securities company registers to be a member must pay and the preparation work for the securities company.declare transactions on the Ho Chi Minh Stock Exchange. HCM. In case of Disapproval, the Ho Chi Minh Stock Exchange will clearly state the reason in writing.

6. Within five (05) working days from the date of being approved in principle for membership, the securities company must complete the following tasks:

a. Fully and validly supplementing documents proving readiness for transaction implementation (if required by the Ho Chi Minh Stock Exchange ) ;

b. Prepare working conditions for trading representatives at Ho Chi Minh Stock Exchange:

c. Sign an agreement to receive and use information with the Ho Chi Minh Stock Exchange and other service provision contracts (if any);

d. Register for the official trading day.

7. Within three (03) working days from the date the securities company reports on the completion of the preparation for the transaction as prescribed in Clause 6 of this Article, the Ho Chi Minh Stock Exchange will issue a decision on approval . membership and publish information about new members on the information disclosure media of the Ho Chi Minh Stock Exchange. In case of refusal to accept a member, the Ho Chi Minh Stock Exchange shall send a written notice to the securities company registering as a member, clearly stating the reason.

8. Ho Chi Minh Stock Exchange has the right to refuse to accept membership when:

a. The application file for registration as a member contains false information;

b. Securities company registered as a member Failing to fully pay the prescribed fee;

c. Failing to meet the requirements on facilities ;

d. At the end of the prescribed time limit, the securities company fails to complete the preparations as prescribed in Clause 6 of this Article;

dd. Other cases specified by Ho Chi Minh Stock Exchange.

9. Within sixty (60) days from the date of being approved for membership, if a member does not conduct trading activities through the trading system of the Ho Chi Minh Stock Exchange, the decision to accept the membership will be automatic. No longer valid. The Ho Chi Minh Stock Exchange will publish this information on the information disclosure media of the Ho Chi Minh Stock Exchange.

Best Regards!