Latest regulations on members of Vietnam Stock Exchange

Latest regulations on members of Vietnam Stock Exchange (Internet image) 

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

1. Latest regulations on members of Vietnam Stock Exchange

According to Article 47 of the Law on Securities 2019, regulations on Members of Vietnam Stock Exchange (VSE) are as follows:

* Members of VSE include:

- Securities companies recognized as trading members by VSE;

- Commercial banks, FBBs and other organizations recognized as special trading members by VSE.

* Members of VSE have the rights to:

- Use the securities trading system and services provided by Stock Exchange and its subsidiaries;

- Receive market information from VSE and its subsidiaries;

- Request VSE to act as a mediator to settle their securities-related disputes;

- Raise issues relevant to securities trading by VSE and its subsidiaries;

- Other rights prescribed by law and the charter of VSE.

* Members of VSE have the obligations to:

- Have their securities trading and information disclosure supervised by VSE and its subsidiaries in accordance with regulations of VSE;

- Disclose information in accordance regulations of law and VSE;

- Assist other members in trading at the request of VSE and its subsidiaries where necessary;

- Other rights prescribed by law and the charter of VSE.

2. Conditions to become a trading member of the Vietnam Stock Exchange

Pursuant to Article 97 of Decree 155/2020/ND-CP stipulating the conditions to become a member of the Vietnam Stock Exchange:

- Securities companies are members of the clearing or depository members with clearing agreement, settlement with the common clearing members; in case of registering as a debt instrument trading member, securities companies are depository members and are granted licenses to fully carry out securities business activities as prescribed in Clause 1 Article 72 of the Law on Securities 2019.

- Meeting the requirements for information technology infrastructure, business processes, and personnel under the regulations of the Stock Exchange.

- Not in a state of control, special control as prescribed by law.

3. Conditions for becoming a special trading member, State Treasury to participate in debt instrument trading of Vietnam Stock Exchange

According to Article 99 of Decree 155/2020/ND-CP, the conditions for becoming a special trading member, State Treasury to participate in debt instrument trading of Vietnam Stock Exchange are as follows:

* Conditions for becoming a special trading member include:

- Being a commercial bank, a branch of a foreign bank with contributed charter capital or granted a minimum capital equivalent to the prescribed capital and not being in a special control state as regulated by the law on credit institutions;

- Being a depository member or an organization directly opening an account at the Vietnam Securities Depository and Clearing Corporation;

- Meeting the requirements for information technology infrastructure, business processes, and personnel for debt instrument trading activities under the regulations of the Stock Exchange.

* Conditions for the State Treasury to participate in debt instrument trading include:

- Being an organization directly opening an account at the Vietnam Securities Depository and Clearing Corporation;

- Meeting the conditions prescribed in point c, clause 1, Article 99 of Decree 155/2020/ND-CP.

- Special trading members, the State Treasury are only allowed to carry out debt instrument trading for themselves.

To Quoc Trinh

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