Who are the trading members in privately placed bonds under the law in Vietnam?

Who are the trading members in privately placed bonds under the law in Vietnam?

Pursuant to Clause 1, Article 11 of Circular 30/2023/TT-BTC, trading members in privately placed bonds include trading members and special trading members that have been approved by VNX in accordance with regulations of the Law on securities.

- Trading members that are securities companies are allowed to buy and sell privately-placed bonds for their clients and for themselves. Eligibility requirements, required documentation and procedures for registration and cancellation of membership, and suspension of trading of privately-placed bonds of trading members shall comply with the provisions on trading members laid down in the Decree 155/2020/ND-CP;

- Special trading members are allowed to buy and sell privately-placed bonds for themselves only. Eligibility requirements, required documentation and procedures for registration and cancellation of membership, and suspension of trading of privately-placed bonds of special trading members shall comply with the provisions on special trading members engaging in trading of the Government’s debt instruments laid down in the Decree 155/2020/ND-CP.

Who are the trading members in privately placed bonds under the law in Vietnam? (Internet image)

Responsibilities of trading members in privately-placed bonds in Vietnam

Pursuant to Clause 2, Article 11 of Circular 30/2023/TT-BTC, trading members in privately-placed bonds of VNX shall:

- Comply with Clause 6 Article 4 of this Circular before inputting orders into the trading system;

- Ensure that they and their clients (if acting as trading members) have sufficient funds and bonds before conducting transactions, and check the validity and legitimacy of trading orders in accordance with regulations of law;

- Ensure the accuracy and adequacy of information on transactions entered into the trading system;

- Retain and protect confidentiality of accounts and trading dossiers of their clients in accordance with regulations of law;

- Provide information on their accounts and on accounts of their clients at the request of competent authorities;

- Submit periodical reports, ad hoc reports and other reports as required in Clause 3 of Article 11 of Circular 30/2023/TT-BTC and HNX’s regulations on trading members in privately-placed bonds.

Reporting by trading members in privately-placed bonds in Vietnam

According to Clause 3, Article 11 of Circular 30/2023/TT-BTC, reporting by trading members:

- Trading members in privately-placed bonds shall submit monthly, quarterly, biannual and annual reports to VNX;

- A trading member in privately-placed bonds shall submit ad hoc reports to VNX and/or HNX within 24 hours after it detects any transactions considered as securities and securities market-related offences prescribed in Article 12 of the Law on Securities and in other cases prescribed by laws;

- Where necessary and for the purpose of protecting investors’ interests, SSC, VNX and HNX may request trading members to provide information on privately-placed bonds. Trading members shall provide requested information in an adequate, accurate and timely manner, in the form and by the deadline requested by SSC, VNX or HNX.

Mai Thanh Loi

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