Circular No. 115/2017/TT-BTC guiding the supervision of securities transactions on the securities market

                                           

   

 CIRCULAR

||| Guidelines for supervising securities transactions on the securities market

Pursuant to the Securities Law dated June 29, 2006;

Pursuant to the Law Amending and Supplementing Certain Provisions of the Securities Law dated November 24, 2010;

Pursuant to Decree No. 58/2012/NĐ-CP dated July 20, 2012 of the Government detailing and guiding the implementation of certain provisions of the Securities Law and the Law amending and supplementing certain provisions of the Securities Law;

Pursuant to Decree No. 60/2015/NĐ-CP dated June 26, 2015 of the Government amending and supplementing certain provisions of Decree No. 58/2012/NĐ-CP dated July 20, 2012 of the Government detailing and guiding the implementation of certain provisions of the Securities Law and the Law amending and supplementing certain provisions of the Securities Law;

Pursuant to Decree No. 42/2015/NĐ-CP dated May 5, 2015 of the Government providing for derivative securities and the derivative securities market;

Pursuant to Decree No. 87/2017/NĐ-CP dated July 26, 2017, issued by the Government, stipulating 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 issues this Circular guiding the supervision of securities transactions on the securities market.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular guides the supervision of securities transactions on the organized securities market.

Article 2. Applicability

This Circular applies to the following supervisory subjects and objects:

1. Supervisory subjects:

a) State Securities Commission (hereinafter referred to as SSC);

b) Stock Exchange (hereinafter referred to as HOSE);

c) Vietnam Securities Depository Center (hereinafter referred to as VSDC).

2. Supervised objects include organizations and individuals participating in the trading process and providing services related to securities trading, including:

a) Listed and registered issuers;

b) Trading members and derivatives trading members (hereinafter referred to as TM);

c) Members of the Vietnam Securities Depository Center (hereinafter referred to as MVD);

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

e) HOSE and VSDC when providing services related to securities trading;

f) Securities companies, commercial banks, foreign bank branches implementing securities derivatives settlement and payment (hereinafter referred to as SP);

g) Individual investors and institutional investors (hereinafter referred to as IN);

h) Monitoring banks and commercial banks providing services for opening securities investment deposit accounts;

i) Related entities.

Article 3. Explanation of Terms

In this Circular, the following terms shall be understood as follows:

1. Organized securities market is a place or form of information exchange to aggregate buy and sell orders and securities trading of listed and registered securities on the stock exchange, including the securities derivatives trading market (hereinafter referred to as SM).

2. Listed and registered issueris an organization with securities listed and registered on the stock exchange.

3. Securities transaction is the act of buying and selling securities through the stock exchange's trading system and other cases of transferring ownership of listed and registered securities on the stock exchange carried out by the Vietnam Securities Depository Center in accordance with securities laws.

4. Internal transaction refers to acts defined in Clause 1, Article 70 of Decree No. 58/2012/NĐ-CP dated July 20, 2012 of the Government detailing and guiding the implementation of certain provisions of the Securities Law and the Law amending and supplementing certain provisions of the Securities Law (hereinafter referred to as Decree No. 58/2012/NĐ-CP).

5. Market manipulation transaction SM refers to acts defined in Clause 2, Article 70 of Decree No. 58/2012/NĐ-CP.

6. Abnormal transaction refers to transactions falling within the abnormal warning criteria of the monitoring criteria system issued and applied by the stock exchange to determine securities with abnormal transactions after approval by the State Securities Commission.

7. Rumor is information from a group of people, an individual, or an organization about an issue related to securities or securities transactions occurring on the securities market that may be true or not, but at the time the rumor is released, there is no basis for verification.

Chapter II

ORGANIZATION OF SUPERVISION OF SECURITIES TRANSACTIONS

Section 1

SUPERVISION OF SECURITIES TRANSACTIONS

BY THE STATE SECURITIES COMMISSION

Article 4. Responsibilities and Authorities of the Securities Commission

1. Lead and coordinate with relevant agencies and units to develop and submit to competent authorities for issuance legal documents on securities trading supervision.

2. Issue procedures for the Securities Commission's securities trading supervision; regulations on cooperation in securities trading supervision work between the Securities Commission, Stock Exchanges, and Securities Depositories.

3. Approve the system of criteria for securities trading supervision developed by the Stock Exchange and the thresholds for margin usage ratios and position limits per investor account established by the Securities Depository.

4. Develop and implement annual securities trading supervision plans.

5. Supervise securities trading activities on the securities market to detect, prevent, and handle insider trading, market manipulation trading, and other violations of securities trading laws.

6. Monitor investors' compliance with securities trading laws.

7. Require supervised entities to report, explain, and provide information and documents related to securities trading.

8. Timely issue appropriate warnings for transactions and behaviors showing signs of violation to prevent illegal acts in securities trading by supervised entities.

9. Compile supervision reports and reports serving supervision work of the Stock Exchange, Securities Depository, Trading Members; request the Stock Exchange, Securities Depository, Trading Members, and Trading Brokers to cooperate to promptly identify, analyze, assess, and conduct inspections and handling when necessary for entities involved in abnormal securities trading as prescribed by law.

10. Lead and coordinate with relevant units in inspecting supervised entities as stipulated in Clause 2 Article 2 of this Circular.

11. Report annually or upon request from the Ministry of Finance to the Ministry of Finance on the results of securities trading supervision work.

Article 5. Contents of Supervision by the Securities Commission

The contents of supervision by the Securities Commission include:

1. Based on supervision reports, reports serving supervision work of the Stock Exchange, Securities Depository, Trading Members, and other information sources, conduct in-depth analysis to detect market manipulation trading, insider trading, other prohibited trading, and violations of securities and securities market laws related to securities trading activities to take timely measures to prevent and handle them.

2. Supervise the Stock Exchange's activities in organizing and supervising securities trading occurring on the securities market within its supervisory scope as stipulated in Section 2 Chapter II of this Circular.

3. Supervise the Securities Depository's activities in managing and supervising margin usage ratios per investor account, Trading Brokers; position limits for investors participating in derivative securities trading as stipulated in Section 3 Chapter II of this Circular.

4. Supervise domestic institutional investors' and foreign investors' securities trading to promptly detect unusual developments that may cause psychological effects on individual retail investors.

5. Supervise the provision of services related to securities trading by entities specified in points b, c, d, đ, e, h, i Clause 2 Article 2 of this Circular.

Article 6. Methods for Securities Trading Supervision by the State Securities Commission

1. Based on trading data provided by the Stock Exchange, conduct analysis, evaluation, and handle according to regulations for securities transactions with unusual signs.

2. Monitor securities trading based on information from the following sources:

a) Reports on supervision and reports serving supervisory work of the Stock Exchange, the Securities Depository Center, and the Securities Trading Center;

b) Reports of listed organizations and those registered for trading;

c) Reports and reflections of organizations and individuals participating in trading on the securities market;

d) Information from mass media and rumors;

đ) Other information sources.

3. Conduct irregularity checks on supervised entities through the detection of abnormal trading signs reported by the Stock Exchange, the Securities Depository Center, the Securities Trading Center, and organizations and individuals participating in trading and providing securities trading services on the securities market.

Section 2

SUPERVISION OF SECURITIES TRANSACTIONS

OF THE STOCK EXCHANGE

Article 7. Rights and Responsibilities of the Stock Exchange

1. Issue procedures for supervision to ensure effective supervision work; issue a system of monitoring criteria for securities trading on the Stock Exchange as stipulated in Article 9 of this Circular after being approved by the State Securities Commission.

2. Establish a database system to serve supervision work, including contents prescribed in Article 11 of this Circular.

3. Supervise trading activities and provide related services within the securities trading market organized by the Stock Exchange in accordance with the law.

4. Monitor daily, multi-day, periodic trading developments; analyze, evaluate, and be responsible for identifying signs of market manipulation, insider trading, and trading behaviors specified in Clause 3, Article 70 of Decree No. 58/2012/NĐ-CP.

5. Supervise the disclosure of information and reporting systems currently in force related to securities trading of the Securities Trading Center, listed organizations, those registered for trading, securities investment fund management companies, public securities investment funds, securities investment companies, and investors.

6. Review information on mass media and rumors related to abnormal trading.

7. Require the Securities Trading Center, relevant organizations, and individuals to explain and provide information and documents related to securities trading to support securities trading supervision work.

8. Carry out inspections of the Securities Trading Center in accordance with Article 12 of this Circular; coordinate with the State Securities Commission to conduct regular or irregular inspections of entities under the Stock Exchange's supervision scope.

9. Handle violations of securities trading regulations by the Securities Trading Center according to the Stock Exchange's rules, and recommend the State Securities Commission to handle violations of securities trading regulations according to the law.

10. Prepare and submit to the State Securities Commission periodic, irregular, and requested reports on securities trading supervision of supervised entities.

11. Coordinate with the Securities Depository Center to ensure safe and efficient operations of trading, settlement, and securities trading derivatives transactions in accordance with Clause 3, Article 11 of Decree No. 42/2015/NĐ-CP dated May 5, 2015, of the Government on securities derivatives and the securities derivatives market, and other related legal documents.

Article 8. Content of Securities Trading Supervision by the Stock Exchange

1. The Stock Exchange shall implement supervision to prevent and detect securities trading activities and behaviors that violate laws on securities trading, including:

a) Internal trading behavior;

b) Behavior manipulating the securities market;

c) Behavior specified in Clause 3, Article 70 of Decree No. 58/2012/NĐ-CP;

d) Other violations of securities trading laws as prescribed by the law on securities and the securities market.

2. Supervise securities trading, information disclosure, and reporting related to listed and over-the-counter traded securities of listed organizations, over-the-counter traded organizations, securities trading intermediaries, fund management companies, public investment funds, securities companies, major shareholders, investors holding five percent or more of a closed-end fund's certificates, internal persons of listed and over-the-counter traded organizations, internal persons of closed-end listed funds, and related parties, authorized information disclosers, and investors in accordance with current regulations.

Article 9. Criteria for Securities Trading Supervision

1. The Stock Exchange shall establish and promulgate a system of criteria for supervising securities trading of listed and over-the-counter traded securities on the Stock Exchange to serve as the basis for conducting intra-day and multi-day trading supervision after approval by the State Securities Commission.

2. The content and specific parameters within the system of securities trading supervision criteria must be defined and adjusted periodically to suit the trading situation on the securities market and ensure effective securities trading supervision.

Article 10. Methods of Securities Trading Supervision by the Stock Exchange

1. Online monitoring of intra-day trading of listed and over-the-counter traded securities through the Stock Exchange's surveillance system to identify abnormal trading.

2. Multi-day trading supervision based on one or more of the following sources:

a) Securities trading database;

b) Reports and information provided by securities trading intermediaries, listed and over-the-counter traded organizations, organizations and individuals participating in the securities market; information disclosed by investors in accordance with the law on securities and the securities market;

c) Information related to securities settlement and payment received from the Central Depository Corporation;

d) Information from mass media and rumors;

đ) Other information sources.

3. Requesting relevant organizations and individuals to provide information and explanations to clarify signs of abnormal trading.

4. Conducting inspections of securities trading intermediaries in accordance with Article 12 of this Circular.

5. Cooperating with the State Securities Commission to conduct regular or irregular inspections of entities under the Stock Exchange's supervision.

Article 11. Database System for Securities Trading Supervision

The Stock Exchange is responsible for establishing a database system to support securities trading supervision work. The minimum contents of the database system must include:

1. Data on the results of securities trading.

2. Lists and information about entities under the Stock Exchange's supervision that have violated securities and securities market laws and Stock Exchange regulations.

3. Reports and information related to securities trading disclosed through the Stock Exchange's information disclosure system; reports and information already reported to the State Securities Commission.

4. Data related to investor securities trading accounts.

Article 12. Inspection of Securities Trading Members of the Stock Exchange

1. Inspect compliance with regulations, rules, and procedures related to securities trading, as well as member regulations issued by the Stock Exchange.

2. Inspect compliance with regulations on listing and information disclosure, as well as securities trading by listed organizations and organizations registered for securities trading on the Stock Exchange.

3. Based on the inspection results as stipulated in Clause 1 and 2 of this Article, the Stock Exchange shall be responsible for:

a) Handling according to the Stock Exchange's regulations in cases where violations related to securities trading by trading members are discovered;

b) Reporting the inspection results and handling measures to the State Securities Commission;

c) Recommending the State Securities Commission to handle violations by trading members when such actions exceed the authority of the Stock Exchange.

Article 13. Periodic Trading Surveillance Reports

1. Within two working days at the beginning of the following week, the Stock Exchange shall be responsible for sending the weekly trading surveillance report to the State Securities Commission, including:

a) Trading orders book, daily results of securities trading; periodic information during trading days as prescribed in Clause 2, Article 33 of Circular No. 155/2015/TT-BTC dated October 6, 2015, issued by the Minister of Finance guiding the disclosure of information on the securities market (hereinafter referred to as Circular No. 155/2015/TT-BTC), in accordance with the content specified in Form No. 01 Appendix I attached to this Circular;

b) Weekly results of securities trading surveillance work as specified in Form No. 02 Appendix I attached to this Circular.

2. Within ten working days at the beginning of the following month, the Stock Exchange shall be responsible for sending the monthly trading surveillance report to the State Securities Commission in accordance with the content specified in Form No. 03 Appendix I attached to this Circular.

3. Within twenty working days at the beginning of the next year, the Stock Exchange shall be responsible for sending the annual trading surveillance report to the State Securities Commission in accordance with the content specified in Form No. 04 Appendix I attached to this Circular.

4. The reports prescribed in Clauses 1, 2, and 3 of this Article shall be prepared in both document form and electronic data file format. Specifically, the report prescribed in point a of Clause 1 of this Article only needs to be sent in electronic data file format. These reports shall be sent in electronic data file format if both the State Securities Commission and the Stock Exchange apply electronic signature programs. The Stock Exchange shall be responsible for retaining reported information in accordance with the provisions of the law.

Article 14. Unusual Trading Surveillance Reports

1. When signs of violations as prescribed in Clause 1, Article 8 of this Circular are detected, the Stock Exchange shall be responsible for sending unusual reports to the State Securities Commission within twenty-four (24) hours from the time the Stock Exchange discovers the matter or receives reports requesting the disclosure of unusual information related to securities trading.

2. For the unusual reports mentioned in Clause 1 of this Article, the Stock Exchange shall be responsible for preparing separate analysis reports for each case, providing evaluation opinions, and proposing handling solutions within its authority or recommending handling in cases exceeding its authority.

Article 15. Trading Surveillance Reports Upon Request

1. The Stock Exchange shall be responsible for sending reports upon receiving written requests from the State Securities Commission.

2. The reports sent to the State Securities Commission as prescribed in Clause 1 of this Article must be presented in both document form and electronic data file format in accordance with the content and deadlines requested by the State Securities Commission.

Section 3

 SUPERVISION BY THE VIETNAM SECURITIES DEPOSITORY CENTER

Article 16. Responsibilities and Authorities of the Central Counterparty (TTLKCK)

1. Establish rules and procedures for securities settlement activities to ensure effective supervision of these operations.

2. Manage and supervise the maintenance of margin levels; determine and adjust position limits for clearing members and investors as prescribed.

3. Require organizations and individuals under the supervision of the Central Counterparty (TTLKCK) related to securities settlement activities to report, explain, provide information and documents for supervisory purposes.

4. In case of detecting unusual signs in transactions or indications that investors or clearing members have lost their ability to settle, the Central Counterparty (TTLKCK) shall issue warnings, request clearing members to explain and provide relevant documents and information, promptly report to the Securities Commission (UBCKNN), and simultaneously notify the Stock Exchange (SGDCK).

5. Timely inform the Stock Exchange (SGDCK) of cases violating the margin usage ratio and position limit violations.

6. Fully retain all information as stipulated in Article 20 of this Circular and share transaction-related information with the Stock Exchange (SGDCK) for its market surveillance work.

7. Implement the contents regarding cooperation between the Stock Exchange (SGDCK) and the Central Counterparty (TTLKCK) as prescribed in Article 29 of Decree No. 42/2015/NĐ-CP dated May 5, 2015 of the Government on derivative securities and the derivative securities market.

8. Coordinate with the Securities Commission (UBCKNN) to conduct regular or irregular inspections of entities within the scope of the Central Counterparty's (TTLKCK) supervision.

9. Handle cases of violation within its authority, report to the Securities Commission (UBCKNN) for handling according to the law when exceeding its authority.

10. Prepare and submit periodic, irregular, and requested reports to the Securities Commission (UBCKNN) for supervisory purposes as prescribed in Article 25 of this Circular.

Article 17. Supervision Content of the Central Counterparty (TTLKCK)

1. Monitor trading members and clearing members in compliance with laws and regulations on securities and the securities market in implementing business activities related to registration, custody, settlement, and securities payment.

2. Monitor the margin usage ratio for each investor and clearing member account.

3. Monitor the position limits of investors participating in derivative securities transactions.

Article 18. Supervision Criteria at the Central Counterparty (TTLKCK)

1. The Central Counterparty (TTLKCK) establishes and promulgates margin usage ratio thresholds and position limits for each investor and clearing member account in its operational rules after approval by the Securities Commission (UBCKNN).

2. The content and thresholds of supervision must be defined and adjusted periodically to suit market conditions and ensure effective supervision at the Central Counterparty (TTLKCK).

Article 19. Supervision Methods of the Central Counterparty (TTLKCK)

1. Monitor cases of margin usage ratio violations by investors and position limit violations based on one or more data sources and information including:

a) Position and margin data of clearing members and investors;

b) Periodic reports and information reflecting from clearing members and other participants in the derivative securities market;

c) Information from mass media;

d) Other sources of information.

2. Request organizations and individuals under the supervision of the Central Counterparty (TTLKCK) to provide information and explanations to clarify unusual signs.

3. Coordinate with the Securities Commission (UBCKNN) to conduct regular or irregular inspections of entities within the scope of the Central Counterparty's (TTLKCK) supervision.

Article 20. Data Storage for Surveillance Work

TTLKCK shall be responsible for storing complete information on:

1. The daily end-of-day position quantity according to the investor's account, clearing member; daily profit and loss value, position value according to the clearing member, initial margin value, required margin value, collateral asset value and portfolio according to each investor's and clearing member's account.

2. Information related to the investor's position limit.

3. List and information about entities within the scope of TTLKCK's surveillance that violate securities laws and regulations and derivative securities market regulations, as well as TTLKCK's regulations related to clearing and settlement of derivative securities.

4. Data regarding the handling of clearing members at TTLKCK due to violations of the collateral asset usage ratio, position limit violations.

5. Data related to the clearing and settlement activities of derivative securities transactions of clearing members and investors.

Article 21. Periodic Surveillance Reports

1. Within the first ten working days of the following month, TTLKCK shall be responsible for sending monthly periodic reports to the Securities Commission (UBCKNN) including:

- Report on the handling of violations against clearing members (Form No. 06 Appendix II);

- Report supporting member clearing firms that have lost their ability to pay (Form No. 07 Appendix II).

2. The periodic reports specified in Clause 1 of this Article shall be prepared in the form of written documents and electronic data files (with the application of electronic signature programs).

Article 22. Unusual Surveillance Reports

1. TTLKCK shall be responsible for sending unusual reports to the Securities Commission when signs of violations of relevant regulations concerning margin requirements, position limits, clearing, and settlement of derivative securities transactions are detected.

2. Unusual reports sent to the Securities Commission shall be in the form of written documents and electronic data files within twenty-four (24) hours from the time TTLKCK detects the incident or receives unusual information disclosure requests related to securities with abnormal signs.

3. For unusual surveillance reports, TTLKCK shall be responsible for preparing the report, providing an evaluation opinion, and proposing a handling plan within its authority or recommending handling measures if it exceeds its authority.

Article 23. Surveillance Reports Upon Request

1. TTLKCK shall be responsible for submitting a report upon receiving a written request from the Securities Commission.

2. The reports sent to the State Securities Commission as prescribed in Clause 1 of this Article must be presented in both document form and electronic data file format in accordance with the content and deadlines requested by the State Securities Commission.

Chapter III

OBLIGATIONS OF SURVEILLANCE OBJECTS

Article 24. Obligations to Provide Information and Explain According to Requests of Organizations and Individuals Participating in Securities Trading and Providing Securities Trading Services

1. Organizations and individuals participating in securities trading and providing securities trading services shall have the obligation to provide, update in a timely, complete, and accurate manner all information, documents, and electronic data related to securities trading surveillance content as requested by the Securities Commission (UBCKNN), Stock Exchange (SGDCK), and TTLKCK; explain according to the requests of the Securities Commission and Stock Exchange regarding matters related to securities trading as stipulated by law; and disclose information in accordance with the provisions of the Securities Law and the Securities Market Law in the following cases:

a) Securities trading of organizations and individuals who are major shareholders as prescribed in Article 29 of the Securities Law and Circular No. 155/2015/TT-BTC;

b) Securities trading of organizations, individuals, and related parties intending to hold up to twenty-five percent (25%) of voting shares, fund certificates of listed or registered-for-trading organizations, closed-end funds; Securities trading of organizations, individuals, and related parties currently holding twenty-five percent (25%) or more of voting shares, fund certificates of listed or registered-for-trading organizations, closed-end funds as prescribed in Clause 1 of Article 32 of the Securities Law amended by Clause 11 of Article 1 of the Law Amending and Supplementing Certain Provisions of the Securities Law and guiding documents;

c) Securities trading of board of directors members, supervisory board members, General Director (Director), Deputy General Director (Deputy Director), Chief Financial Officer, Chief Accountant, Head of Finance and Accounting Department, internal persons of listed organizations, registered-for-trading organizations, internal persons of publicly traded investment funds, persons authorized to disclose information, and related persons as prescribed in Circular No. 155/2015/TT-BTC;

d) Commercial banks providing services to open securities investment accounts for investors shall be responsible for providing information on customer account balances as requested by the Securities Commission and competent authorities as prescribed by law;

đ) Supervising banks shall be responsible for providing data related to the investment and trading activities of investment funds under their supervision as requested by the Securities Commission and competent authorities as prescribed by law.

2. Organizations and individuals participating in securities trading on the securities market shall cooperate with the Securities Commission, Stock Exchange, and TTLKCK and other competent authorities as prescribed by law when requested.

3. In case organizations and individuals participating in securities trading and providing securities trading services do not cooperate with the authorities specified in Clause 2 of this Article, they will be handled according to the provisions of the law.

Article 25. Obligations of the Vietnam Securities Depository Center

The Vietnam Securities Depository Center (VSDC) shall have the obligation to store all information related to its business activities and implement reporting regimes regularly, irregularly, and upon request to the State Securities Commission (SSC) for market supervision purposes.

1. Within the first ten working days of each month, VSDC shall be responsible for sending the SSC monthly reports including:

a) Report on the situation of issuing securities codes (Form No. 01 Appendix II);

b) Report on error correction, error handling, delayed payment settlement, and cancellation of payment settlement (Form No. 02 Appendix II);

c) Statistics on securities transactions transferring ownership outside the stock exchange trading system (gifts, donations, inheritances, etc.) (Form No. 03 Appendix II);

d) Report on information and identity of securities trading accounts opened by investors at securities companies (Form No. 04 Appendix II);

đ) List of major shareholders of companies registering securities with VSDC (Form No. 05 Appendix II).

The monthly reports specified in points a and b of Clause 1 of this Article shall be prepared in both written form and electronic data files (with the application of electronic signature programs). For the reports specified in points c, d, and đ of Clause 1 of this Article, electronic data transmission shall be applied. VSDC shall be responsible for retaining reported information in accordance with the law.

2. Irregular reports: When detecting signs of violations related to activities such as error correction, delayed payment settlement, cancellation of payment settlement, transfer of ownership outside the trading system, shareholding ratios for investors, pledges, changes in share ownership, exercise of rights, violations by securities depository members, clearing members, organizations, and individuals using services provided by VSDC, VSDC shall be responsible for sending irregular reports to the SSC.

Irregular reports sent to the SSC shall be in written form and electronic data files within twenty-four (24) hours from when VSDC discovers the incident or receives reports requesting the publication of irregular information related to securities.

3. Reports upon request: VSDC shall be responsible for sending reports when it receives written requests from the SSC to serve market supervision purposes. Reports upon request sent to the SSC must be presented in written form and electronic data files according to the content and deadlines requested by the SSC.

4. VSDC shall be responsible for retaining reported information in accordance with the law.

5. In necessary cases, VSDC shall prepare regular or irregular reports as required by the Ministry of Finance.

Article 26. Obligations of Trading Members and Clearing Members

1. Obligation to cooperate in implementing market surveillance work of Trading Members and Clearing Members

a) Cooperate with the SSC, Stock Exchange, and VSDC in implementing securities trading surveillance work when requested;

b) Cooperate with the SSC in inviting investors to meet with inspection teams of the SSC related to abnormal transactions;

c) In case of discovering securities transactions violating regulations on securities and the securities market, they shall be responsible for reporting to the SSC.

2. Reporting obligations of Trading Members

a) Trading Members shall be responsible for implementing reporting systems serving securities trading surveillance within their functions and sending them to the SSC and Stock Exchange, including:

- Monthly report: Within the first five working days of each month, Trading Members shall be responsible for sending the Stock Exchange the monthly report according to the model in Appendix III of this Circular.

- Irregular report: Trading Members shall be responsible for reporting to the SSC and Stock Exchange within twenty-four (24) hours from when they discover transactions that appear to be prohibited transactions as stipulated in Article 9 of the Securities Law.

- Report upon request: Trading Members shall be responsible for sending the SSC and Stock Exchange reports upon request when receiving written requests from the SSC and Stock Exchange. Trading Members shall have the obligation to report fully, accurately, and promptly according to the content and deadlines requested in writing by the SSC and Stock Exchange.

b) Regular, irregular, and reports upon request specified in point a of this clause shall be presented in written form and electronic data files (if necessary).

Chapter IV

IMPLEMENTING PROVISIONS

Article 27. Effective Date

This Circular takes effect from December 8, 2017, and replaces Circular No. 13/2013/TT-BTC dated January 25, 2013, issued by the Minister of Finance on securities trading surveillance on the securities market.

Article 28. Implementation Organization

1. The State Securities Commission, Stock Exchange, Vietnam Securities Depository Center, trading members, clearing members, listed organizations, registered trading organizations, investment fund management companies, securities investment companies, and related organizations and individuals are responsible for implementing this Circular.

2. Amendments, supplements, and replacements of this Circular shall be decided by the Minister of Finance./.