Circular No. 115/2017/TT-BTC dated October 25, 2017 of the Ministry of Finance on guiding the surveillance of securities trading on the securities market

CIRCULAR
Guiding the surveillance of securities trading on the securities market^[1]

Pursuant to the June 29, 2006 Law on Securities;

Pursuant to the November 24, 2010 Law Amending and Supplementing a Number of Articles of the Law on Securities;

Pursuant to the Government’s Decree No. 58/2012/ND-CP of July 20, 2012, detailing and guiding a number of articles of the Law on Securities and the Law Amending and Supplementing a Number of Articles of the Law on Securities;

Pursuant to the Government’s Decree No. 60/2015/ND-CP of June 26, 2015, amending and supplementing a number of articles of Decree No. 58/2012/ND-CP of July 20, 2012, detailing and guiding a number of articles of the Law on Securities and the Law Amending and Supplementing a Number of Articles of the Law on Securities;

Pursuant to the Government’s Decree No. 42/2015/ND-CP of May 5, 2015, prescribing derivatives and the derivatives market;

Pursuant to the Government’s Decree No. 87/2017/ND-CP of June 26, 2017, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

At the proposal of the Chairman of the State Securities Commission;

The Minister of Finance promulgates the Circular guiding the surveillance of securities trading on the securities market.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Circular guides the surveillance of securities trading on the organized securities market.

Article 2. Subjects of application

This Circular applies to the following watchdogs and entities subject to surveillance:

1. Watchdogs:

a/ The State Securities Commission (SSC);

b/ The Stock Exchanges (SEs);

c/ The Vietnam Securities Depository (VSD).

2. Subject to surveillance are institutions and individuals involved in securities trading and providing securities trading-related services, including:

a/ Listed institutions, institutions registered for trading;

b/ Trading members and derivative trading members (below collectively referred to as trading members);

c/ Depository members of the Vietnam Securities Depository (below referred to as depository members);

d/ Securities investment fund management companies, securities investment funds and securities investment companies;

dd/ SEs and VSD, when providing securities trading-related services;

e/ Securities companies, commercial banks and foreign bank branches permitted to carry out derivatives clearing and trading payment (below referred to as clearing members);

g/ Individual investors and institutional investors (below collectively referred to as investors);

h/ Supervisory banks and commercial banks providing the service of opening securities investment deposit accounts;

i/ Other related entities.

Article 3. Interpretation of terms

In this Circular, the terms below are construed as follows:

1. Organized securities market means a location or form of information exchange for gathering orders to purchase, sell and trade in listed securities, and register trading on the SEs, including also the derivatives trading market (below referred to as the securities market).

2. Listed institution or institution registered for trading means an institution that has its securities listed or registered for trading on an SE.

3. Securities trading means the purchase and sale of securities listed or registered for trading on the SEs carried out by the VSD in accordance with the securities law via the trading system of the SEs and other cases of securities ownership transfer.

4. Insider trading means acts defined in Clause 1, Article 70 of the Government’s Decree No. 58/2012/ND-CP of July 20, 2012, detailing and guiding the implementation of a number of articles of the Securities Law and the Law Amending and Supplementing a Number of Articles of the Securities Law (below referred to as Decree No. 58/2012/ND-CP).

5. Securities market manipulation trading means acts defined in Clause 2, Article 70 of Decree No. 58/2012/ND-CP.

6. Abnormal trading means transactions subject to abnormality warning according to the surveillance criteria set out and applied by the SEs to identify abnormally traded securities after obtaining approval of the SSC.
        7.  m information spread by a group of persons or an individual or institution on a matter related to securities or securities trading on the securities market, which may be true or untrue but cannot be verified at the time of spreading.

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