A share auction at the Hanoi Stock Exchange. (Photo: vnmedia.vn)Hanoi (VNA) - The StateSecurities Commission (SSC) might suspend the operation of the two local stockexchanges and the Vietnam Securities Depository (VSD) if they cause investorsto lose legal benefits and rights.
The warning is included in a draft circular being developed by theMinistry of Finance to instruct the SSC to monitor and supervise the securitiesmarket.
The proposed circular authorizes the SSC to approve the policiesof the two exchanges and VSD that serve the operation of the securities market.
The SSC has to develop yearly inspection plans on the localexchanges and VSD and carry out surprise inspections of the three memberagencies.
The SSC will monitor and supervise the operation of the two localexchanges and VSD based on the monthly reports they are required to submitwithin the first 10 working days of the following month.
The SSC will also provide the local exchanges and VSD withcomplaints of individual and institutional investors and media reports abouttrading activities, and work with its three member agencies to manage theoperation of the securities market.
The local stock exchanges and VSD must report to the SSC abouttheir market management monthly and yearly, including the evaluation of theircompliance with legal policies on the operation of the securities market.
The two local exchanges and VSD must submit reports to the SSCwithin 72 hours of putting a stock on their warning list, control list andsuspension from trading.
The three member agencies are also required to do the same whensuspending a brokerage from trading, settlement and clearing activities, andrevoking the depository and clearing membership of the brokerage firm that isissued by the VSD.
Similar reports are also required to provide details about theviolations of the companies that trade shares on the stock market and registeras trading members for securities products in general, and derivatives productsin particular.
The three agencies also have to provide reports about disputesinvolving clearing and depository members, trading members, the two localexchanges and the VSD.
The finance ministry is collecting feedback on the draftcircular.-VNA
VNA
