Tiếng Việt| THE STATE SECURITIES COMMISSION | SOCIALIST REPUBLIC OF VIETNAM |
| No.31/1999/QD-UBCK6 | Hanoi, October 12, 1999 |
PRESIDENT OF THE STATE SECURITIES COMMISSION
Pursuant to the Ordinance on Inspection dated April 1, 1990;
Pursuant to Decree No.15/CP dated March 2, 1993 by the Government concerning tasks, powers and responsibilities of ministries and ministerial level bodies;
Pursuant to Decree No.75/CP dated November 28, 1996 by the Government concerning the establishment of the State Securities Commission;
Pursuant to Decree No.48/1998/ND-CP dated July 11, 1998 by the Government relating to securities activities and the stock market;
Pursuant to Decree No.61/1998/ND-CP dated August 15, 1998 by the Government concerning the inspection and supervision of enterprises;
According to the proposal of the Chief Inspector of the State Securities Commission;
DECIDES
Article 2: The decision becomes effective 15 days after the date of signing.
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PRESIDENT OF THE STATE SECURITIES COMMISSION
Le Van Chau
ON THE INSPECTION AND SUPERVISION OF SECURITIES ACTIVITIES AND THE STOCK MARKET
(issued in connection with Decision No.31/1999/QD-UBCK6 dated October 12, 1999 by the President of the State Securities Commission)
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a) Organisations issuing shares listed in the collective stock market;
b) The Stock Exchange Centre;
c) Securities companies, securities investment funds, investment fund management companies, members of securities depository, and supervising banks;
d) Entities involved in securities transactions; and
e) Organisations and individuals associated with securities activities and the stock market.
2. Areas of inspection and supervision include:
a) The issuance of shares;
b) Securities transactions;
c) Stock exchange, registration, clearing and settlement and depository; and
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Responsibilities of supervisors and inspectors:
1. The Inspectorate of the State Securities Commission must operate under the direct management of the commission. It is entrusted with responsibility of inspecting and supervising the implementation of policies and legal documents as well as the operations of the Stock Exchange Centre, organisations and individuals associated with the issuance, exchange and providing of securities services.
2. Functional departments of the State Securities Commission are responsible for supervising operations of organisations which are issuing, trading and exchanging stocks and individuals who are operating in the fields of securities in accordance with inforce regulations and laws and within their powers and responsibilities.
3. The Stock Exchange Centre has responsibility for and powers of conducting the inspection and supervision of securities transactions of the Stock Exchange Centre.
4. Organisations providing securities services are responsible for regularly self-supervising their implementation of in-force regulations and laws associated to their business.
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Functional departments of the State Securities Commission, the Inspectorate of the State Securities Commission and the Stock Exchange Centre are responsible for regularly conducting the supervision effectively.
1. Analysing applications for issuing and listing securities;
2. Supervising and analysing the obedience of regulations on the disclosure of information;
3. Analysing the transferability of shares and bonds;
4. Analysing the payable capabilities of principles and dividends of shares and bonds;
5. Considering serious damages, such as stopping production, changing business lines, and separating or merging companies which influence prices of saleable shares and bonds of companies; and
6. Foreseeing trends of securities issued and listed.
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The supervision of operations of the Stock Exchange Centre includes the following activities:
1. Analysing the selling and buying of securities as well as the fluctuation of prices and securities sale volume to discover signs of disorder in securities transactions;
2. Conducting the supervision aimed at the discovery of insider trading or market and price manipulating trading activities;
3. Examining the possession of domestic and foreign investors;
4. Investigating rumours influencing market prices; and
5. Foreseeing developing trends in the market.
1. Maintenance of liquidity capital and assets;
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3. Trading performances;
4. Equity capital;
5. State Budget's obligatory;
6. Evaluations of management and organising results of organisations trading and providing securities services; and
7. Supervisions of the application of regulated conditions when granting operation licences.
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a) The accuracy, adequacy and legitimacy of applications for issuing and listing securities;
b) The accuracy, adequacy and punctuality of the information disclosure;
c) Mortgage assets (if any) and guarantee of the issuance;
d) The obedience of safety conditions in accordance with in-force regulations;
e) The establishment of funds used to pay principals and interests of bonds; and
f) Damages and corrective measures.
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a) The volume of securities issued publicly;
b ) Price index and transactional volume of securities with doubtful signs;
c) Statistics and documents of intermediary companies and main investors involved in the securities transations;
d) Definitions of causes triggering daily changes in prices and securities sales volume; and
e) Analysing relations and information:
* Relations between insiders of shares issuing organisations and collective investors;
* Relations among large investors concerning accounts, prices and securities sales volume;
* The selling and buying of collective securities, large securities sales volume; and large scale transactions, and
* Securities transactions with signs of violation.
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1. Inspections of the operational nature of securities:
* The obedience of regulations on opening and managing securities transaction accounts of customers;
* The appropriateness of the brokerage and private business professions;
* The obligatory of catching information related to customers; and
* The obedience of regulations on brokerage and private business.
2. Inspections of unfair actions:
* The collection of charges and fees by customers surpassing regulated levels;
* Timely and completely sending notices on recognising transactional results to customers;
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* Actions that force, incite and mobilise customers to the speculation of securities.
3. Inspections of financial powers:
* The portion of the net liquidity capital counted at the time of inspection which will be compared with those of previous periods;
* Portions of investment capital contributions which will be compared with the regulated levels;
* Investment quality of private business securities; and
* Income sources from trading, brokerage, private business and issuing guarantee;
4. Inspections of accounting activities:
* Opening book-entry systems, and archiving documents and book-keeping systems;
* The legitimacy of the book-keeping systems; and
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5. Inspections of inside operation controls:
* The obedience of regulations on the inside operation controls;
* Quality and efficiency of the inside operation controls; and
* Co-operative relations between inside operation controls with outside auditing activities and Sate-owned securities management bodies.
Main regulations are as follows:
a) Quality of inside operation controls and supervisions of members as regulated;
b) The obedience of regulations on the settlement of obstacles, complaints and accusations; and
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2. The director of the Stock Exchange Centre is authorised to determine the examinations on all securities transactions of the Stock Exchange Centre.
3. Decisions on inspections and examinations are required to include all legal bases, contents, requirements, areas and terms of inspection and examinations, as well as the powers and responsibilities of the Inspectorate.
4. Inspected and examined organisations must know in advance the inspection and examination at least seven days, before the decisions on inspections and examination are announced, excluding sudden cases.
5. Term of inspections:
a) The term of inspections cannot exceed 30 days:
a) In case of necessity, those who are authorised to determine the inspection are eligible to extend the term which, however, cannot exceed 30 days; and
b) The term of inspections is within the date of announcing the decision on inspections to the inspected organisation and the date of announcing results of the inspection.
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a) The term of examinations cannot exceed five days from the date of announcing the decision on examinations; and
b) In case of necessity, those who are authorised to determine the examination are eligible to extend the term of examinations which, however, cannot exceed regulated levels for each examination.
STIPULATIONS ON MAKING REPORTS
Inspectors of the State Securities Commission are required to monthly send the President of the State Securities Commission reports on the directions and implementations of results of inspections and supervisions; and annually and quarterly send the President of the State Securities Commission and the State Chief Inspector reports on results of inspections, supervisions, and settlements of complaints and accusations.
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PRESIDENT OF THE STATE SECURITIES COMMISSION
Le Van Chau
- 1 Decree No. 144/2003/ND-CP of November 28th, 2003, on securities and securities markets.
- 2 Decree of Government No.48/1998/ND-CP of July 11, 1998 on securities and securities market
- 3 Decree No.15-CP of Government, relating to duties, powers and responsibilities for State Mangement of Ministries, ministerial Agencies.
- 1 Decree No. 144/2003/ND-CP of November 28th, 2003, on securities and securities markets.
- 2 Decision No. 163/2003/QD-TTg of August 05, 2003, approving the strategy on development of Vietnam's securities market till 2010
- 3 Decree of Government No. 17/2000/ND-CP of May 26, 2000 on organization and operation of The Securities Inspectorate
- 4 Decree of Government No.48/1998/ND-CP of July 11, 1998 on securities and securities market