Recently, the Government of Vietnam has issued Decree No. 158/2006/NĐ-CP detailing the implementation of the Commercial Law regarding goods purchase and sale through the Goods Exchange.
According to Decree No. 158/2006/NĐ-CP of Vietnam’s Government, rights and obligations of trading members of the Goods Exchange are specified as follows:
Rights of trading members
- To conduct dealing activities or be entrusted to conduct goods purchase and sale for their customers through the Goods Exchange.
- To request their customers to pay collateral to secure the performance of transactions in case they are entrusted to conduct goods purchase and sale for their customers through the Goods Exchange.
- Other rights provided for in this Decree and the operation charter of the Goods Exchange.
Obligations of trading members
- To strictly and fully perform the obligations arising from transactions through the Goods Exchange.
- To pay member status collateral and trading collateral before conducting transactions through the Goods Exchange.
- To pay the membership fee, trading fee and other fees specified in the operation charter of the Goods Exchange.
- To set up a system for internal control, risk management and monitoring and prevention of internal and transaction conflicts of interest.
- In case of undertaking entrustment, to sign written entrustment contracts with their customers and be allowed to conduct transactions for their customers only when receiving entrusted trading orders from customers.
- To supply adequate, truthful and prompt information to their customers.
- To keep all documents and accounts specifically and accurately reflecting transactions for their customers and for themselves.
- To execute their customers' entrusted trading orders before their own ones.
- To conduct honest and fair transactions in their customers' interest.
- To separately account activities of goods purchase and sale through the Goods Exchange for each customer and for itself.
- To abide by the Goods Exchange's designation according to the provisions of Clause 2, Article 25 of this Decree.
- Other obligations specified in this Decree and the operation charter of the Goods Exchange.
View more details at Decree No. 158/2006/NĐ-CP of Vietnam’s Government, effective from January 22, 2007.
Ty Na
Address: | 19 Nguyen Gia Thieu, Vo Thi Sau Ward, District 3, Ho Chi Minh City |
Phone: | (028) 7302 2286 |
E-mail: | info@lawnet.vn |