Circular No. 95/2020/TT-BTC guiding the surveillance of securities trading on the securities market

CIRCULAR

Guiding the surveillance of securities trading on the securities market

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Pursuant to the Law on Securities dated November 26, 2019;

Pursuant to the Government’s Decree No. 87/2017/ND-CP of July 26, 2017 on 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 trading of listed securities, and registration of trading on the 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;

b) The Vietnam Stock Exchange;

c) The subsidiary companies of the Vietnam Stock Exchange, including the Hanoi Stock Exchange, the Ho Chi Minh Stock Exchange (hereinafter referred to as the Stock Exchanges);

d) The Vietnam Securities Depository and Clearing Corporation;

dd) Trading members (excluding special trading members on the derivatives market and on the government bond market).

2. Subject to surveillance are institutions and individuals involved in securities trading and providing services relating to securities trading on the securities market, including:

a) Listed institutions, institutions registered for trading;

b) Trading members, special trading members;

c) Members of the Vietnam Securities Depository and Clearing Corporation, including depository members and clearing members;

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

dd) The Stock Exchanges, the Vietnam Securities Depository and Clearing Corporation, when providing services related to securities trading, clearing and payment;

e) Investors participating in securities trading;

g) Supervisory banks and commercial banks providing the service of opening securities investment deposit accounts;

h) Other related entities.

Article 3. Interpretation of terms

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

1. Securities trading means the securities purchase and sale carried out via the trading system of the Stock Exchanges.

2. Abnormal trading means transactions subject to warning according to the system of surveillance criteria issued by the Vietnam Stock Exchange.

3. Suspected trading means an extraordinary transaction analyzed and determined by the Stock Exchange as a suspicious transaction affecting movements of price or volume of one or more securities in a certain period, potentially violating the law on securities trading.

4. Violating trading is a transaction violating the law on securities trading as determined by the State Securities Commission.

5. Indicators for reporting on trading supervision applicable to trading members is the content formulated by the Vietnam Stock Exchange, guiding trading members in performing the securities trading surveillance.

6. Rumor means information related to listed institutions, institutions registered for trading, 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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