Regulations on supervision of security and safety to the securities market in Vietnam

Regulations on supervision of security and safety to the securities market in Vietnam (Internet image)

1. What is securities market?

Securities market can be understood as the place where the activities of exchanging, buying, selling and transferring securities of all kinds take place; thereby changing the holder of securities.

2. Regulations on supervision of security and safety to the securities market in Vietnam

The supervision of security and safety to the securities market in Vietnam according to Article 301 of Decree 155/2020/ND-CP is as follows:

- Supervision of security and safety to the securities market is meant to collect and analyze information to identify threats and risks to the security and safety of the securities market in order to come up with solutions for ensuring security and safety to the securities market.

- Risks to the system are the following situations or signs that these situations may happen:

+ A large scale securities company, securities investment fund management company or some securities companies or securities investment fund management companies are shut down, dissolved or go bankrupt;

+ Serious violations against regulations on securities and the securities market are committed and seriously affect the market, or there are considerable market-wide fluctuations of one or some of the following elements: total net worth, total value of transaction/session, total foreign indirect investment in the securities market, total value of margin trading at securities companies, total value of entrusted investment portfolios at securities investment fund management companies;

+ There is an event that negatively affects the stability, order and continuity of the securities market or seriously affect lawful rights and interests of organizations and individuals market-wide.

- SSC shall take charge and cooperate with Stock Exchanges, VSDCC in frequent supervision of security and safety of the securities market; develop a mechanism for cooperation in supervision of security and safety of the securities market; take charge and cooperate with Stock Exchanges, VSDCC and their members in organizing emergency drills where necessary.

- Stock Exchanges, members of Stock Exchanges shall supervise security and safety of the securities market. VSDCC and its members shall supervise the security and safety of the systems for registration, depository, clearing and settlement of securities. Stock Exchanges and VSDCC shall submit reports on supervision of security and safety of the securities market to SSC on an annual basis or as requested by SSC or whenever risks to their systems are found, including response and remedy plans.

- Stock Exchanges and VSDCC shall organize response plan drills and supervise emergency drills by their members. Members of Stock Exchanges, members of VSDCC and clearing banks shall cooperate with Stock Exchanges and VSDCC in development, execution and drill of emergency response plans. Stock Exchanges, VSDCC, their members and clearing banks shall submit reports to SSC and publish information about the outcomes of their drills on their websites within 10 days after the drill ends.

 SBV, the Ministry of Public Security of Vietnam, other Ministries, ministerial agencies, relevant agencies and organizations, within the scope of their functions, tasks, powers, shall cooperate with the Ministry of Finance of Vietnam and SSC in supervising security and safety of the securities market; promulgate or propose and organize implementation of plans, solutions, measures for response to financial crisis or major fluctuations of the economy on the national, regional and global scale that might affect the stability, safety and integrity of the securities market.

Quoc Dat

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