Rights of Vietnam Stock Exchange

Rights of Vietnam Stock Exchange (Internet image)

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

Rights of Vietnam Stock Exchange

The rights of the Vietnam Stock Exchange are specified in Article 7 of the Charter of Organization and Operation of the Vietnam Stock Exchange issued together with Decision 757/QD-BTC in 2021, including:

(1) Rights to capital, assets, financial activities, and investments

- Manage and use capital and assets to perform assigned tasks according to the principles of efficiency, preservation, and development of capital and compliance with the law;

- Mobilize capital in accordance with the law to develop the information technology infrastructure of the stock market. The capital mobilization must be approved by the owner's representative agency on the policy, on the principle of self-responsibility for repayment, ensuring the effective use of mobilized capital, and must not change the ownership form of the Vietnam Stock Exchange;

- Capital investment in subsidiaries in which 100% of charter capital is held by the Vietnam Stock Exchange (including the Hanoi Stock Exchange and the Ho Chi Minh City Stock Exchange), to organize a securities trading market in accordance with the securities law, Decision 37/2020/QD-TTg, and the provisions of this Charter;

- Invest in projects, invest outside enterprises in the field of securities and stock market, contribute capital with other economic organizations to develop information technology infrastructure, and develop securities services within the scope of functions and tasks of the Stock Exchange of Vietnam in order to develop the securities market after the owner's representative agency approves the policy; for cases related to securities operations in accordance with the provisions of the securities law, the Vietnam Stock Exchange collects professional opinions from the State Securities Commission before submitting it to the owner's representative agency for opinions. The management of investment projects and investments outside the enterprise shall comply with the provisions of law;

- Rent, lease, mortgage, pledge, liquidate, trade, and sell assets in accordance with the law;

- Research and propose to the owner's representative agency mechanisms and policies related to financial activities and investment, capital, and asset management of the Stock Exchange of Vietnam and its subsidiaries.

(2) Right to professional activities

- Develop and promulgate regulations on securities listing, securities trading, information disclosure, and members of the Vietnam Stock Exchange and other professional regulations related to the organization and operation of the securities trading market; promulgate transaction supervision criteria; promulgate transaction supervision reporting norms applicable to members of the Vietnam Stock Exchange after being approved by the State Securities Commission;

- Approve and cancel the membership of the Vietnam Stock Exchange; manage, supervise, examine, and handle violations of members in accordance with the securities law; and act as a mediator at the request of members when disputes arise related to securities trading activities; request state management agencies to provide information related to members of the Stock Exchange of Vietnam, listing organizations, and trading registration organizations to serve information disclosure in accordance with the law;

- Direct the subsidiary to organize and operate the securities trading market in accordance with the law, Decision 37/2020/QD-TTg, and amendments, supplements, and replacement documents (if any);

- Supervise the Hanoi Stock Exchange and the Ho Chi Minh City Stock Exchange to implement the regulations on professional activities specified at Point a of this Clause and perform the supervisory duties according to the provisions of Point b, Clause 3 and Point b, Clause 4, Article 2, Decision 37/2020/QD-TTg; general supervision of securities trading activities on the Stock Exchanges in accordance with the provisions of law; supervise information disclosure activities of listing organizations, trading registration organizations and investors subject to information disclosure, perform the task of monitoring the compliance with obligations of members of the Vietnam Stock Exchange according to the provisions of the securities law;

- Formulate plans to develop information technology systems, new technologies, and new products; directly implement or assign Hanoi Stock Exchange and Ho Chi Minh City Stock Exchange to implement;

- Support the development of the stock market through training, propaganda, and knowledge dissemination;

- Manage and supervise the subsidiary in accordance with the provisions of the securities law, the law on enterprises, the law on management and use of state capital invested in production and business at the enterprise, and this Charter;

- Provide services on market information and information related to securities listed and registered for trading; technology infrastructure development services for the stock market; and other related services;

- International cooperation on securities and the stock market with Stock Exchanges around the world and international organizations;

- Collect money for securities service provision and other revenues as prescribed by law;

- Research and propose to competent state management agencies the amendment and promulgation of mechanisms and policies related to securities activities;

- Exercise other rights as prescribed in the Law on Securities, the Law on Enterprises, and other legal documents.

(3) Rights of the Stock Exchange of Vietnam to a subsidiary company in which 100% of the charter capital is held by the Vietnam Stock Exchange

- Decide on establishment, charter capital upon establishment, objectives, tasks, and business lines of the subsidiary after consulting the owner's representative agency; adjust the charter capital during operation, reorganization, ownership conversion, dissolution, and request bankruptcy of the subsidiary after consulting the owner's representative agency;

- Approve and amend the charter of the subsidiary to ensure compliance with the Charter of the Vietnam Stock Exchange after consulting the owner's representative agency;

- Approving the 5-year investment and development strategy and plan and the annual business plan of the subsidiary to ensure it is consistent with the strategy, investment and development plan, and business plan of the Stock Exchange of Vietnam; directing subsidiaries and coordinating among subsidiaries in formulating and organizing the implementation of strategies, development investment plans, and business plans;

- Issue the Regulation on Financial Management and the Regulation on Supervision and Assessment of the Performance of the subsidiary; guide the organization of labor, salary, and bonus management for managers and employees working at the subsidiary to ensure consistency with the financial management mechanism, performance evaluation, the salary regime of the Stock Exchange of Vietnam, and the provisions of law; promulgate the Regulation on Operation of the Supervisory Board at the subsidiaries;

- Approve plans for capital mobilization, investment projects, construction, purchase, and sale of fixed assets valued at more than 50% of the equity of the subsidiary as recorded in the annual financial statements or the subsidiary's quarterly financial statements at the time closest to the time of capital mobilization, the time of project decision, or a lower rate than specified in the subsidiary's charter, except for the cases specified at point e of this clause;

- Approve the plan for outward investment of the subsidiary after consulting the owner's representative agency; approve investment projects to build infrastructure and information technology for subsidiaries; and change the organizational model of securities trading, registration, depository, and settlement on the stock market after consulting the owner's representative agency. In cases related to securities operations, according to the provisions of the securities law, the Vietnam Stock Exchange shall seek professional opinions from the State Securities Commission before submitting it to the owner's representative agency for opinions.

- Review and give opinions on the annual financial plan of the subsidiary to serve as a basis for monitoring and evaluating the business performance of the subsidiary; approve financial statements, distribute profits, and set aside annual funds for subsidiaries;

- Decide on planning, appointment, re-appointment, resignation, relief from duty, transfer, rotation, reward, discipline, resignation, and retirement of the company's president and general director of the subsidiary. after the owner's representative agency comments;

- Decide on planning, appointment, re-appointment, resignation, relief from duty, transfer, rotation, reward, discipline, resignation, and retirement for controllers of subsidiaries;

- Approve the policy on planning, appointment, re-appointment, resignation, dismissal, transfer, rotation, and termination of jobs for the position of Deputy General Director, Chief Accountant of the subsidiary; have approved opinions on the organizational structure of specialized and professional departments of the subsidiary;

- Manage and supervise the subsidiary in accordance with the law on enterprises, the law on management and use of state capital invested in production and business at the enterprise, as stipulated in this Charter, and the Charter on organization and operation of the subsidiary.

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE