Procedures for mediation of disputes related to securities transactions in Vietnam

Procedures for mediation of disputes related to securities transactions in Vietnam (Internet image)

The Vietnam Stock Exchange issued Decision 618/QD-SGDVN on August 29, 2022, on the promulgation of regulations on the conciliation of disputes related to securities transactions between members of the Vietnam Stock Exchange.

1. Procedures for mediation of disputes related to securities transactions in Vietnam

Procedures for conciliation of disputes in securities transactions under Chapter III of the Regulations issued together with Decision 618/QD-SGDVN dated August 29, 2022 are as follows:

1.1. Request for mediation

- When there is a dispute related to securities transactions between members, the member wishes to request the Vietnam Stock Exchange to act as a mediator to perform:

Submit a request for dispute mediation using the form specified in Appendix 02 issued with the Regulations issued together with Decision 618/QD-SGDVN and documents related to the content of dispute mediation for the Stock Exchange of Vietnam.

- In case the dispute falls within the scope of settlement of the Vietnam Stock Exchange, within 05 working days from the date the Vietnam Stock Exchange receives the Application, the Vietnam Stock Exchange shall send a notice to the member requested for mediation, enclosed with a copy of the Dispute Mediation Request Form and documents related to the content of dispute mediation.

- In case the dispute is not within the scope of settlement of the Vietnam Stock Exchange, within 05 working days from the date on which the Vietnam Stock Exchange receives the member's application for dispute mediation, The Vietnam Stock Exchange shall issue a written refusal to mediate disputes for members and clearly state the reasons therefor.

1.2. Confirming the implementation of mediation

- Within 15 days from the date on which the Vietnam Stock Exchange sends a notice to the member requested for mediation, Members are responsible for confirming acceptance or refusal of mediation in writing to the Vietnam Stock Exchange.

- Within 03 working days from the date of receiving the member's written refusal to mediation or beyond the prescribed time limit, if the Vietnam Stock Exchange does not receive a written reply from the member requesting conciliation, the mediation shall not be conducted.

1.3. Preparing for mediation

In case the members agree to mediation, the preparation for mediation is done as follows:

- The Mediation Council learns the facts, meets, and discusses them with the members participating in the mediation to assist them in reaching a solution to the dispute.

In case it is not possible to contact all the members participating in the conciliation at the same time, the Mediation Council may meet and discuss the matter separately with each member. The Mediation Council will notify other mediation participants of these separate meetings and exchanges.

- Requesting members to cooperate, provide documents and evidence to the Mediation Council to ensure the most effective performance of the Mediation Council in the role of mediator.

- After completing the exchange and meeting with the members, the Mediation Council will notify the members of the time and place of the mediation session.

1.4. Organizing a mediation session

- The mediation session will only take place when there is full and valid attendance by all members participating in the mediation. Members participating in the mediation must appoint a representative to participate in the mediation session on the following principles:

+ The representative must be a person at law or a legally authorized person of the member;

+ In addition to the authorized representative, other subjects can participate in the mediation session with the approval of all members participating in the mediation.

- Contents of the mediation session

+ The conciliation council summarizes the disputed issues that need mediation before the members participate in the mediation.

+ Representatives of the members exchange, supplement, and clarify the content of the dispute to be reconciled (if necessary);

+ The Mediation Council proposes a mediation plan for the members participating in the mediation to consider, negotiate, and accept. The members participating in the mediation may propose other dispute resolution options for consideration, negotiation, and approval with the Mediation Council.

- In case of successful conciliation, the members are obliged to implement the agreements reached in the minutes of successful conciliation. In case the mediation is not successful, the members may choose another method to resolve the dispute, which shall be specified in the minutes of the mediation.

1.5. Postponement of mediation

- The mediation session is adjourned in one of the following cases:

+ One of the members is notified of his absence. In the event of a second absence without cause due to force majeure events, the conciliation shall be terminated;

+ When one or more members cannot attend the mediation due to force majeure or at the mediation session, the person who is represented on behalf of the member is incorrect according to the principles specified at Point a, Clause 1, Article 11 of the Regulation promulgated together with Decision 618/QD-SGDVN dated August 29, 2022;

+ At the request of the members participating in the mediation session.

- When the mediation session is postponed, the Vietnam Stock Exchange shall notify the members participating in the mediation session.

- The time for postponement of the mediation session shall be decided by the Vietnam Stock Exchange and shall not exceed 07 working days from the date of issuing the notice to postpone the mediation session.

1.6. Termination of mediation

The mediation shall terminate in one of the following cases:

- One or more members do not agree to continue the mediation or are absent after being notified twice about it.

- The members reconcile themselves or agree with the solutions proposed by the Conciliation Council.

- Members do not reach an agreement to settle disputes related to trading activities.

- When one of the members submits a file to initiate a lawsuit to the court, is in the process of court settlement, or requests another agency or organization to receive and handle it.

1.7. Information security mode

The Vietnam Stock Exchange and the members participating in the mediation commit not to publish, introduce, or use the opinions, recommendations, proposals, or results of the agreement reached during the mediation process for purposes that are unfavorable to the parties or for the purpose of initiating lawsuits in court, except at the request of a competent authority.

2. Rights and obligations of the parties to the mediation in Vietnam

Rights and obligations of the parties to the mediation under Article 7 of the Regulations issued together with Decision 618/QD-SGDVN dated August 29, 2022 include:

- Agree or refuse to mediate; request an adjournment or termination of the mediation.

- Directly or appoint a legal representative to participate in the mediation session.

- Express their will and decide on the content of mediation.

- Present the facts of the case truthfully; provide all relevant documents and evidence.

- Respect the Mediation Council and the rights of the parties involved.

- Do not affect security and order at the mediation venue.

Quoc Dat

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