Circular No. 95/2020/TT-BTC: Regulations on rights and obligations of Vietnam Exchange

According to Article 7 of the Circular No. 95/2020/TT-BTC of the Ministry of Finance of Vietnam, rights and obligations of Vietnam Exchange (VNX) and its subsidiary companies

1. Rights and obligations of VNX

- Promulgate the regulations on supervision of securities transactions after they are approved by State Securities Commission (SSC); establish supervision procedures in order to ensure effectiveness of supervision;

- Assume responsibility for overall supervision of securities transactions on the securities market;

- Establish supervision criteria applied to its subsidiary companies and reporting criteria applied to trading members;

- Submit supervision reports to SSC.

2. Rights and obligations of Stock Exchanges that are subsidiary companies of VNX:

- Directly supervise securities transactions within their regions;

- Develop a database system serving securities transactions as prescribed in Article 11 of the Circular No. 95/2020/TT-BTC;

- Supervise day trading and swing trading, and periodic developments of transactions; identify suspicious transactions;

- Verify information on the media and rumors about unusual transactions;

- Supervise the process of information disclosure and reporting according to applicable regulations on securities transactions by trading members, listed and registered public companies, securities investment fund management companies, securities investment funds, investment companies and investors;

- Request VNX to take actions against trading members that violate securities transaction regulations; request SSC to take actions against violations against regulations of law on securities transactions.

3. In addition to the aforementioned rights and obligations, VNX and its subsidiary companies also have the following rights and obligations:

- Supervise transaction supervision by trading members;

- Request organizations and individuals that are relevant to the transaction to provide information and documents serving securities transaction supervision;

- Prepare and submit periodic and ad hoc securities transaction supervision reports to SSC in accordance with Article 13, Article 14 and Article 15 of the Circular No. 95/2020/TT-BTC;

- Cooperate with SSC in carrying out ad hoc inspections of transactions that are likely to violate regulations of law on securities and the securities market;

- Cooperate with Vietnam Securities Depository and Clearing Corporation (VSDCC) in ensuring safety and effectiveness of securities transactions, clearing and payment.

View more details at the Circular No. 95/2020/TT-BTC of the Ministry of Finance of Vietnam, effective from January 01, 2021.

Thuy Tram

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