Contents of supervision by State Securities Commission in Vietnam

Contents of supervision by State Securities Commission in Vietnam (Internet image)

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

1. Contents of supervision by State Securities Commission in Vietnam

The contents of supervision by State Securities Commission (SSC) according to Article 5 of Circular 95/2020/TT-BTC include:

- On the basis of reports submitted by trading members, Vietnam Exchange, its subsidiary companies and Vietnam Securities Depository and Clearing Corporation, supervision results at SSC and other sources of information, SSC shall analyze signs of violations in suspicious transactions and take appropriate actions.

- Supervise the operation of Vietnam Exchange and its subsidiary companies in organization and supervision of securities transactions in each market region under its management according to Section 2 of this Chapter.

- Supervise the operation of Vietnam Securities Depository and Clearing Corporation in management of position limits on the derivatives market, AR or initial margin depositing according to Section 3 of this Chapter.

- Take charge and cooperate with Vietnam Exchange, its subsidiary companies and Vietnam Securities Depository and Clearing Corporation in analyzing transactions that may affect the securities market; ensure lawful rights and interests of investors and market stability.

- 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.

2. Responsibilities and entitlements of the State Securities Commission in Vietnam

Responsibilities and entitlements of the State Securities Commission according to Article 4 of Circular 95/2020/TT-BTC are as follows:

- Supervise securities transactions on the securities market in order to detect, prevent and take actions against use of internal information for securities trade, manipulation of the securities market and other violations against regulations of law on securities transactions.

- Request supervised entities to report, provide explanation, information and documents about their securities transactions.

- Supervise investors' compliance to regulations of law on securities transactions.

- Issue warnings against suspicious transactions and actions in order to prevent violations against regulations of law on securities transactions by supervised entities.

- Consider approving criteria established by Vietnam Exchange for securities transaction supervision and supervision reporting applied to trading members; position limits applied to derivatives market; method for calculation of initial margin asset ratio (AR); AR supervision thresholds or frequency of supervision of margin depositing established by Vietnam Securities Depository and Clearing Corporation.

- Promulgate regulations on cooperation in securities transactions between SSC, Vietnam Exchange and its subsidiary companies, Vietnam Securities Depository and Clearing Corporation and trading members.

- Take charge and cooperate with relevant units in inspecting securities transactions and provision of relevant services.

- Submit reports to the Ministry of Finance on securities transaction supervision when requested.

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