On 25 October 2017, Circular No. 115/2017/TT-BTC (“Circular 115”) guiding the supervision of trading on securities market was issued and will replace Circular No. 13/2013/TT-BTC (“Circular 13”) as from 08 December 2017.
Circular 115 stipulates on strengthening the supervision of State agencies as well as expanding the scope of supervisees in the securities transactions to ensure the sustainable and transparent development of the market, namely:
1. Regarding supervisee, in comparison with Circular 13, Circular 115 has supplemented the following subjects:
(i) Trading members and derivatives dealers;
(ii) Securities companies, commercial banks and branches of foreign bank which are allowed to offset and settle derivative transactions (“Offset Member”); and
(iii) Individual investors, organizational investors (“Investors”).
2. Regarding supervisors, the Vietnam Securities Depository (“VSD”) shall be a supervisor simultaneously with the State Securities Commission and the Stock Exchange in the domain of:
(i) Supervising custody members and Offset Members in complying with the legislation on securities and securities market when carrying out professional activities related to registration, depository, offsetting and settlement of stocks;
(ii) To monitor the rate of using collateral assets in each account of the Investor, the Offset Member; and
(iii) Supervising the position limits of Investors when participating in derivatives security transaction.
VSD shall monitor the case of breaching the rate of using collateral by the Investors, Offsetting Members and the position limit of the Investors when participating in derivatives security transaction based on data source from:
(i) Position and deposit data of the Offsetting Member and the Investor;
(ii) Periodical reports, reflected information from Offsetting Member and others participating in the derivatives security market;
(iii) Sources on the mass media; and
Upon the occurrence of abnormal signs, VSD may request organizations, individuals being supervisees to provide information and explanations for further clarification, at the same time coordinating with the State Securities Commission to periodically or irregularly inspect the subjects under the supervision scope of VSD.