05 Contents of supervision by SSC in Vietnam

05 Contents of supervision by SSC in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. What is securities transaction?

According to Clause 1, Article 3 of Circular 95/2020/TT-BTC, securities transaction means the purchase or sale of securities through the securities transactions system of a Stock Exchange.

Specifically, securities trading systems include the systems for trading of listed securities and the systems for trading of unlisted securities, organized and run by Vietnam Stock Exchange (VSE) and its subsidiaries.

(Clause 26, Article 4 of the Law on Securities 2019)

2. Contents of supervision by SSC in Vietnam

Specifically, in Article 5 of Circular 95/2020/TT-BTC, the contents of supervision by SSC include:

(1) On the basis of reports submitted by trading members, VNX, its subsidiary companies and VSDCC, supervision results at SSC and other sources of information, SSC shall analyze signs of violations in suspicious transactions and take appropriate actions.

(2) Supervise the operation of VNX and its subsidiary companies in organization and supervision of securities transactions in each market region under its management according to Section 2 Chapter II Circular 95/2020/TT-BTC.

(3) Supervise the operation of VSDCC in management of position limits on the derivatives market, AR or initial margin depositing according to Section 3 of Chapter II Circular 95/2020/TT-BTC.

(4) Take charge and cooperate with VNX, its subsidiary companies and VSDCC in analyzing transactions that may affect the securities market; ensure lawful rights and interests of investors and market stability.

(5) Supervise provision of services relevant to securities transactions by the entities specified in Points b, c, d, dd, g, h Clause 2 Article 2 of Circular 95/2020/TT-BTC.

- Trading members, special trading members;

- Members of VSDCC, including depository members and offsetting members;

- Securities investment funds and securities investment fund management companies, investment companies;

- Stock Exchanges, VSDCC when providing services relevant to securities transactions, clearing and payment;

- Supervisory banks, commercial banks that open securities accounts;

- Relevant entities.

3. Methods for securities transaction supervision by SSC in Vietnam

Supervision according to information from the following sources in Vietnam:

- Supervision reports submitted by VNX and its subsidiary companies, VSDCC and its members;

- Reports submitted by listed and registered public companies;

- Information provided by organizations and individuals participating in the securities market;

- Information on the media and securities-related rumors;

- Other sources of information.

(Clause 1, Article 6 of Circular 95/2020/TT-BTC)

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