Decree No. 17/2000/NĐ-CP On the organization and operation of the Securities Inspection Agency

DECREE

Regarding the organization and operation of Securities Inspection

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THE GOVERNMENT

Pursuant to the Government Organization Law dated September 30, 1992;

Pursuant to the Inspection Ordinance dated April 1, 1990;

At the proposal of the Chairman of the State Securities Commission, the Minister, Head of the Civil Service Organization Board of the Government, and the Chief Inspector of the State,

DECREE:

PART I

GENERAL PROVISIONS

Article 1. The Securities Inspection is a specialized state inspection in the securities and securities market sector, belonging to the organizational structure of the State Securities Commission, with its own seal.

Article 2. The purpose of the Securities Inspection's activities is to contribute to ensuring the safety, fairness, transparency, and effectiveness of the securities market operations, protecting the interests of the State, and the legitimate rights and interests of investors.

Article 3. The objects of the Securities Inspection include:

1. Organizations issuing securities for trading on centralized trading markets;

2. Securities Trading Centers, Stock Exchanges;

3. Securities companies; Issuer guarantors, Investment Fund Management Companies; Securities registration organizations, securities custody organizations, securities settlement organizations; Supervisory banks;

4. Securities business practitioners;

5. Organizations and individuals related to securities activities and the securities market.

Article 4. The scope of activities of the Securities Inspection includes:

1. Securities issuance activities;

2. Securities transactions;

3. Securities business, registration, settlement, custody activities;

4. Information disclosure.

Article 5. The activities of the Securities Inspection must comply with the law, ensuring accuracy, objectivity, transparency, democracy, and timeliness; no agency, organization, or individual may interfere illegally in the activities of the Securities Inspection.

Chapter II

DUTIES, POWERS AND ORGANIZATION OF THE SECURITIES INSPECTION

Article 6. The Securities Inspection has duties and powers:

1. Inspecting compliance with laws on securities and the securities market; implementation of regulations in securities issuance licenses, securities business operation licenses, securities business practitioner licenses;

2. Cooperating with units under the State Securities Commission in supervising securities issuance, business, and trading activities. Conducting inspections of organizations and individuals related to securities issuance, business, and trading activities to detect and prevent violations. Recommending the Chairman of the State Securities Commission to implement measures to ensure enforcement of laws on securities and the securities market;

3. Detecting, preventing, and imposing administrative penalties within its authority; recommending competent authorities to handle violations of laws on securities and the securities market;

4. Investigating, concluding, and recommending competent authorities to resolve complaints and reports related to securities activities and the securities market according to the Law on Complaints and Reports. Advising the Chairman of the State Securities Commission to direct preventive work and anti-corruption efforts in the securities industry;

5. Advising the Chairman of the State Securities Commission to direct inspection work for units under its management;

6. Performing other tasks and powers as stipulated in Article 8, Article 9 of the Inspection Ordinance dated April 1, 1990, and other tasks assigned by the Chairman of the State Securities Commission.

Article 7. When conducting inspections, it has the right to:

1. Request inspected entities and related parties to provide documents, evidence, and answer questions related to the inspection content;

2. Draft inspection records and recommend solutions;

3. Apply preventive measures and handle administrative violations according to the law;

4. Exercise other inspection powers as prescribed by law.

Article 8. When conducting inspections, the Securities Inspection has the responsibility to:

1. Present the inspection decision and the Inspector's card;

2. Follow the correct inspection procedures and processes without causing undue inconvenience, harassment, hindering securities issuance, business, and trading activities, and causing damage to the legitimate interests of organizations and individuals related to securities issuance, business, and trading activities;

3. Report the inspection results and recommended solutions to the Chairman of the State Securities Commission.

Article 9. The Securities Inspection shall only be established at the State Securities Commission. The operating regulations of the Securities Inspection shall be decided by the Chairman of the State Securities Commission, after reaching consensus with the Chief Inspector of the State and the Minister, Head of the Civil Service Organization Board of the Government.

Article 10. The Securities Inspection is subject to the direction of the Chairman of the State Securities Commission in performing inspection tasks related to securities activities and the securities market.

Article 11. The head of the Securities Inspection is the Chief Inspector, with Deputy Chief Inspectors assisting the Chief Inspector.

The appointment and removal of the Chief Inspector shall be proposed by the Chairman of the State Securities Commission to the State Auditor General for submission to the Prime Minister for decision.

The appointment and removal of other positions and ranks of securities inspectors shall be carried out in accordance with current laws on inspection.

Chapter III

DUTIES AND POWERS OF THE CHIEF INSPECTOR AND SECURITIES INSPECTORS

Article 12. The Chief Inspector of securities has the following duties and powers:

1. Directing and organizing the implementation of the duties and powers of the Securities Inspection as stipulated in Article 6 of this Decree;

2. Imposing administrative penalties and recommending administrative penalties for violations in the field of securities and the securities market in accordance with the law;

3. Implementing other powers as provided for in Article 15 of the Inspection Ordinance;

4. Performing other tasks assigned by the Chairman of the State Securities Commission.

Article 13. Securities inspectors must meet the standards of ranks and grades of civil servants in the state inspection sector.

Article 14. During the course of inspection, securities inspectors must perform their duties and powers as prescribed in the Inspection Ordinance and other legal documents that specify the duties and powers of securities inspectors.

Article 15. Securities inspectors are entitled to benefits, incentives, and technical equipment according to current laws.

Chapter IV

RELATIONSHIP BETWEEN SECURITIES INSPECTION AND RELATED AUTHORITIES

Article 16. The Securities Inspection is subject to the direction and guidance on organization and inspection operations by the State Inspection and maintains other relationships with the State Inspection in accordance with the law on inspection.

Article 17. During the process of inspecting activities related to issuance, trading, and dealing in securities, if the Securities Inspection discovers signs of violation of laws in other fields, it has the responsibility to notify the relevant inspection organizations to take appropriate measures.

When inspection organizations of Ministries, agencies at the level of ministries, government agencies, and local state inspection organizations conduct inspections and checks within their areas of state management and discover signs of violation of laws concerning securities and the securities market, they have the responsibility to notify the Securities Inspection.

Article 18. The Securities Inspection has the responsibility to coordinate with investigative agencies, People's Procuratorates, and People's Courts at all levels in combating crimes in the field of securities and the securities market in accordance with the law.

If during the inspection process, the Securities Inspection discovers organizations and individuals suspected of criminal offenses related to securities and the securities market, it must transfer the case file to the competent investigative agency.

Investigative agencies, when necessary, must cooperate with the Securities Inspection during the investigation of issues related to securities and the securities market.

Article 19. The Securities Inspection may use cooperating inspectors in its inspection activities in accordance with current laws on inspection.

Chapter V

REWARD AND VIOLATION HANDLING

Article 20. Civil servants of the Securities Inspection, cooperating inspectors, and the Securities Inspection organization who achieve outstanding results in inspection activities shall be rewarded in accordance with the law.

Article 21. Securities inspectors who violate legal provisions, fail to fulfill their responsibilities while performing their duties, or shield organizations and individuals from violations of laws concerning securities and the securities market and the provisions of this Decree shall be subject to disciplinary action or criminal prosecution depending on the severity of the violation, and if damage is caused, they must compensate according to the law.

Chapter VI

IMPLEMENTING PROVISIONS

Article 22. This Decree shall take effect fifteen days from the date of signature.

Article 23. The Chairman of the State Securities Commission shall provide guidance on the implementation of this Decree.

Article 24. Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of provincial and centrally governed city People's Committees are responsible for implementing this Decree.