Measures for assurance of security and safety of the securities market in Vietnam

Measures for assurance of security and safety of the securities market in Vietnam (Internet image)

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

1. Measures for assurance of security and safety of the securities market in Vietnam

According to Clause 1, Article 7 of the Securities Law 2019, measures for assurance of security and safety of the securities market include:

- Supervision of security and safety of the securities market;

- Response to and recovery from events that adversely affect the safety, stability and integrity of the securities market;

- Suspension of certain listed or registered securities from trading on the system;

- Suspension of some or all transactions of Vietnam Stock Exchange and its subsidiaries;

- Partial or full suspension or restoration of securities registration, depositing, offsetting, payment functions of Vietnam Securities Depository and Clearing Corporation (Vietnam Securities Depository and Clearing Corporation);

- Temporarily or permanently prohibition from holding certain positions in securities companies, fund management companies, branches of foreign securities companies, investment companies; prohibition from securities activities due to commission of securities offences;

- Freezing the securities account; requesting a competent person to freeze a deposit account involved in a securities fraud.

2. Regulations on State Securities Commission (SSC) in Vietnam

Regulations on the SSC according to Article 9 of the Securities Law 2019 are as follows:

- SSC is affiliated to the Ministry of Finance and is responsible for advising and assisting the Minister of Finance in state management of securities and the securities market, organizing implementation of regulations of law on securities and the securities market as authorized by the Minister of Finance, and has the following duties and entitlements:

+ Propose legislative documents on securities and the securities market, strategies, plans, schemes and policies on development of the securities market to the Minister of Finance or a competent authority for promulgation;

+ Organize and develop the securities market; directly manage and supervise securities activities; manage services related to securities and the securities market in accordance with regulations of law;

+ Issue, reissue, renew, revise, revoke licenses, securities professional certifications, certificates related to securities activities; revise, suspend and revoke decisions relevant to securities activities;

+ Manage, inspect, supervise operations of Vietnam Stock Exchange, its subsidiaries and Vietnam Securities Depository and Clearing Corporation; consider approving regulations of Vietnam Stock Exchange, its subsidiaries and Vietnam Securities Depository and Clearing Corporation; request Vietnam Stock Exchange, its subsidiaries and Vietnam Securities Depository and Clearing Corporation to revise their regulations; revise, suspend and revoke decisions relevant to operations of Vietnam Stock Exchange, its subsidiaries and Vietnam Securities Depository and Clearing Corporation; direct Vietnam Stock Exchange, its subsidiaries and Vietnam Securities Depository and Clearing Corporation to fulfill duties to protect the lawful rights and interests of investors;

+ Consider approving new securities; change and apply new transaction methods;

+ Manage and supervise operations related to securities and the securities market of organizations and individuals;

+ Carry out inspections; settle complaints and denunciations; impose administrative penalties against securities-related offences;

+ Submit reports to the Ministry of Finance on the securities market developments. Submit a report to the Ministry of Finance, the Government and the Prime Minister on any adverse event that considerably affect the security and safety of the securities market in order to stabilize the market and maintain financial security and safety;

+ Implement or request a competent authority to implement measures for assurance of securities market safety and security;

+ Produce statistics and forecasting about securities activities and the securities market; modernize information technology serving securities activities and the securities market;

+ Provide or cooperate with relevant organizations in providing training for securities officials and certified securities professionals; spread knowledge about securities and the securities market in the public.

+ Issue instructional documents and other documents under the management of SSC;

+ Supervise securities-related socio-professional organizations implementing their charters and guidelines;

+ Prepare and submit reports on securities trading and securities market as prescribed by law;

+ Promote international cooperation and coordinate implementation of securities-related international agreements to which Vietnam is a signatory;

+ Other duties and entitlements provided for in this Law and relevant laws.

- Functions, tasks, entitlements and organizational structure of SSC shall be specified by the Prime Minister.

- Officials and public employees of SSC, in performance of their duties, shall ensure truthfulness and confidentiality of information, compliance with regulations on securities and the securities market and relevant laws.

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