VCN - The Ministry of Finance has issued Circular No. 115/2017/TT-BTC guiding the supervision of stock transactions on the securities market.
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This Circular replaces the Ministry of Finance's Circular No. 13/2013 / TT-BTC dated 25 January 2013 on supervision of stock transactions on the stock market. The circular takes effect from 8 December 2017.
This Circular defines the responsibilities and rights of the State Securities Commission (SSC) in issuing supervision procedures; coordination regulation between the SSC, the Stock Exchange and the Vietnam Securities Depository in order to detect and handle acts of internal transactions, acts of securities market manipulation and other prohibited transactions and acts of law violation in the field securities and securities market; and in requiring supervisors to report information and documents related to securities transactions.
In addition, commercial banks providing account opening services to investors are also responsible for providing information on account balances of investors; data related to securities investment and transactions of the investment fund under bank’s management at the request of the SSC and other competent agencies according to the provisions of law.
Organizations and individuals engaging in transactions on the securities market must cooperate with the SSC, the Stock Exchange and the Vietnam Securities Depository and competent agencies according to law upon request. Organizations or individuals who fail the cooperation will be handled according to the law.
The circular also regulates the rights and responsibilities of stock exchanges such as issuing supervision procedures to ensure efficiency; to monitoring securities transactions, providing services related to securities transaction in the market of the stock exchanges; reviewing information on the mass media and rumours related to abnormal transactions; making and sending regular and irregular reports to the SSC at the request on the subjects of supervision.
The Circular also defines the rights and responsibilities of the Vietnam Securities Depository (VSD) as follows: managing and monitoring the maintenance of depository level; Determining and adjusting limit and position for securities companies, commercial banks and foreign bank branches to clear and settle derivatives transactions (TVBT) and investors according to the law; Requesting organizations and individuals under its supervision and management relating to securities clearing and payment activities to report, explain and provide information and documents for the supervision.
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The supervision method of the VSD is based on data on position, depository of TVBT and investors; regular reports and information reflected by TVBT and participants of the derivatives securities market; information resources on the mass media and other information sources. The VSD has right to request organizations and individuals subject to the supervision of the VSC to provide information and explain their abnormal acts; coordinate with the SSC to regularly or irregularly check subjects of supervision of the VSD.
By Huong Giang/ Huyen Trang