03 cases where a securities-trading organization placed under control in Vietnam

16:20, 14/12/2020

This is a notable content of the Circular No. 91/2020/TT-BTC of the Ministry of Finance of Vietnam on prudential indicators and actions against securities-trading organizations that fail to achieve the prudential indicators, issued on November 13, 2020.

03 trường hợp tổ chức kinh doanh chứng khoán bị đặt vào tình trạng kiểm soát, Thông tư 91/2020/TT-BTC

Specifically, according to Article 14 of the Circular No. 91/2020/TT-BTC of the Ministry of Finance of Vietnam, the State Securities Commission of Vietnam (SSC) shall issue the decision to place a securities-trading organization under control in the following cases:

- The liquid capital ratio reaches from 120% to below 150% during the reporting periods in three (03) consecutive months; or

- The liquid capital ratio that has been examined or audited by an accredited audit organization reaches from 120% to below 150%; or

- The prudential indicator report about which the accredited audit organization issue a dissenting or contrary opinion, or a disclaimer of opinion, or fails to give any opinion, or issues a qualified opinion, the liquid capital ratio is from 120% to below 150%, if the exceptions are not included in the liquid capitals.

The control period must not exceed 12 months from the day on which the securities-trading organization is placed under control. After 04 months from the day on which the control is placed, Vietnam Stock Exchange (VNX) shall partially suspend the trading by the affiliated securities companies that fail to successfully take remedial actions against the control. The suspension of affiliated securities companies of VNX will be lifted when SSC stops placing the securities company under control. Procedures for suspension shall comply with regulations of VNX.

Moreover, SSC will consider lifting the control status when the securities-trading organization’s liquid capital ratio reaches 180% or more in three (03) consecutive months, the liquid capital ratio during the last reporting period has been audited by an accredited audit organization, and the securities-trading organization has submitted a report according to Appendix XI hereof to SSC.

View more details at the Circular No. 91/2020/TT-BTC of the Ministry of Finance of Vietnam, effective from January 01, 2021.

Le Vy

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE

63 lượt xem

- The legal regulations in this article are according to Vietnamese Law;
- This English translation is for reference purposes only and not a definitive translation of the original Vietnamese texts;
- Articles may be compiled from a variety of sources;
- Applicable Terms may have expired at the time you are reading;
- If you have any questions about the copyright of the article, please contact us via email banquyen@lawnet.vn