Under the draft, the market regulators are the State Securities Commission (SSC), the Viet Nam Stock Exchange and its member companies – the Ho Chi Minh and Ha Noi stock exchanges, and the Viet Nam Securities Depository and Settlement Corporation and its member units. Active commercial banks on the derivatives and government bond markets are not included.
Following reports by trading members and market regulators mentioned above, the SSC will investigate and penalise any actions that break the regulations on securities trading.
The highest-level market regulator will also analyse the data to find and prevent possible violations.
The Viet Nam Stock Exchange, the two stock bourses, the Viet Nam Securities Depository and Settlement Corporation and its member units will be supervised by the SSC when conducting trading, depositing and settlement activities.
The SSC will work with the Viet Nam Stock Exchange, the two bourses and the Viet Nam Securities Depository and Settlement Corporation to analyse and forecast activities that may have an impact on the local stock market to protect investors and stabilise the market.
Sources of information may come from the reports developed by the Viet Nam Stock Exchange, the two bourses and the Viet Nam Securities Depository and Settlement Corporation.
Listed companies and investment funds are also required to submit daily reports to the SSC. In addition, traders and investors are also able to report suspicious activities on the market.
Other sources of information include media reports and speculation. According to the Ministry of Finance, speculation is unidentified information/events related to the listed company/investment fund.
Under the draft circular, organisations and individuals are obliged to provide the SSC and other market regulators with the required information when asked.
Commercial banks that provide settlement services for investors must provide necessary information of the accounts if demanded by the SSC and other regulatory agencies.
In addition, banks must report trading data of investment funds to the SSC and other market regulators in accordance with existing rules. If any organisation or investor refuses to work with the market regulators, they will be penalised accordingly to regulations.