Circular 74/2009/tt-Btc: Guide To Stock Trading

Original Language Title: Thông tư 74/2011/TT-BTC: Hướng dẫn về giao dịch chứng khoán

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now for only USD$20 per month, or Get a Day Pass for only USD$4.99.
CIRCULAR Guide to stock trading _ _ _ _ _ _ _ _ _ _ _ _ securities pursuant to the law No. 70/2006/QH11 was passed by Congress on June 29, 2006;
Pursuant to Decree No. 118/2008/ND-CP on November 27, 2008 of the Government functions, tasks, powers and organizational structure of the Ministry of finance;
The Ministry of finance guidelines on trading on the stock market as follows: chapter I GENERAL PROVISIONS article 1. Scope this circular guides the operation of the stock exchange listed companies, registration of transactions and public investment funds on the stock exchange (SGDCK).
Article 2. Explain the term In this circular, the terms below are interpreted as follows: 1. the company is trading member of stock are SGDCK to approve membership for the transaction.
2. The trading system is a computer system used for stock trading activities at SGDCK.
3. the command transfer system is the system of execution of the transfer order of investors from the trading member to SGDCK.
4. price range is limited to fluctuations in securities prices specified in the transaction is calculated according to the percentage (%) in comparison with the reference price.
5. The reference price is the price as the basis to calculate SGDCK oscillations in the stock price of the transaction.
6. order matching method is the method the transaction because the transaction system implementation based on a match of commands to buy and sell orders for securities. Order matching method includes determine and continuous order matching.
7. the agreed method is the method of transaction in which members trading deals with each other about the conditions of the transaction and be trading members enter information into the system to record the results of the transaction.
8. Buying securities margin (margin) is buying securities of clients have used the company's loan stocks and use the securities in your account and securities purchased with borrowed money to pledge.
9. Internal information is information related to the company or our funds have not yet been announced that if published could have a major influence on the company's stock price or mass Fund.
10. internal transactions are transactions using inside information to buy and sell securities to beneficial (or avoid profiting, down the hole) for the implementation of the transaction, people know insider information or third persons.
11. The transactions manipulated the stock market is that one or more individuals, organizations make or collusion with another make, directly or indirectly, placing orders, transaction or disclosure, in order to create information dispersal of supply, demand, liquidity, performance reviews to artificially for one or more types of securities.
Chapter II SPECIFIC PROVISIONS of article 3. Stock trading organization 1. SGDCK held the securities according to the method and order matching method. Order matching method on the transaction system to follow the principle of price and time priority.
2. SGDCK organized stock exchange listing, register transactions on SGDCK through SGDCK's trading system, except for the following cases: a) of cases specified in point b of paragraph 1 article 4 circular 43/2009/TT-BTC on 25/3/2010 of the Minister of finance amend, supplement the registration regulation , custody, clearing and stock payments attached to decision No 87/2007/QD-BTC dated 22 October 2007 by the Minister of finance.
b) auction sale of State stake in listed institutions, public company;
c) other transfer cases through central securities depository (TTLKCK) after the State Securities Committee (STATE SECURITIES COMMISSION) approved.
3. SGDCK issued regulations guiding stock after being approved by the STATE SECURITIES COMMISSION. Regulation of securities trading guidelines specific provisions about: trading time; The trading method; How to determine the reference price; Stock price range; The type of transaction command; The Edit command, cancel the transaction and other related content.
4. SGDCK Hanoi held securities and trading in securities of the company not yet listed on SGDCK, except for the cases stipulated in points a, b and c of Paragraph 2 of this Article.
5. TTLKCK stock code level for the stock is traded on the SGDCK.
Article 4. Suspend stock 1. Suspend SGDCK securities transactions throughout the system in the case: a) the trading system or the system of command transfer SGDCK problems;
b) in the event of unforeseen events affecting the market's trading activity as a natural disaster, fire;
c) STATE SECURITIES COMMISSION to stop trading to stabilize the market;
d) SGDCK cases deemed necessary to protect the interests of investors, after being approved by the STATE SECURITIES COMMISSION.
2. The suspension of transactions each type of specific securities follow trading regulation of SGDCK.
3. SGDCK to report when the STATE SECURITIES COMMISSION decided to suspend trading specified in point a, b Account 1 and Account 2 things.
Article 5. Price range 1. SGDCK price range rules after being approved by the STATE SECURITIES COMMISSION;
2. where necessary to ensure market stabilization, STATE SECURITIES COMMISSION decided to adjust the amplitude of price fluctuations.
Article 6. Bug fixes after the transaction, the transaction and cancel the transaction 1. TTLKCK is responsible for promulgating the guidelines the following fixes for trading securities and registration of transactions on SGDCK after being approved by the STATE SECURITIES COMMISSION.
2. SGDCK is responsible for issuing regulations on the establishment and cancellation of stock after being approved by the STATE SECURITIES COMMISSION.
Article 7. Stock investors investors to open stock trading accounts at securities firms to execute securities transactions on SGDCK and is responsible for providing complete, accurate information when opening a trading account.
Investors are only allowed to open a trading account in each of the company's securities, except for the following cases: a) escrow account of investors;
b) Fund management company must open a separate account for the company itself and stock investment funds by fund management companies managing in each securities firm where the Fund management company to open an account and must clearly state this in the account opening agreement. The case made portfolio management, the Fund management company must open two (2) trading accounts stood at fund management company of securities companies on behalf of investors trust, including one (1) account for fiduciary investments in water and one (1) account for fiduciary investments abroad.
c) foreign investors as foreign securities firms established under foreign law is opening a trading account securities segregated in the company stock to stock management of Government owned companies (proprietary trading) and accounts for customers (broker) of foreign securities companies.
d) insurance company 100% foreign-owned operations in Vietnam when taking stock must open two (2) trading account in the company stock: one (1) investment accounts from equity sources and is subject to the foreign ownership rate, one (01) investment accounts from premium income and not subject to rate the Department ownership of foreign investors.
3. The opening of stock trading account securities practitioners was made according to the provisions in paragraph 2 to article 81, the Securities Law.
4. The case for investors to open stock trading accounts at securities firms ranging in account opening records in the new securities company must specify the number of accounts opened and the code number of your account in the securities company.
5. foreign investors just open a trading account after registration and was granted TTLKCK stock code.
6. STATE SECURITIES COMMISSION issued guidelines manual account code for stock investors. The securities company where investors open accounts are responsible for keeping the information about account holders, stock information and the certificate from the relevant minimum 10 years from the date the transaction arise.
7. Investors must ensure the Monetary Fund rate or stock in the transaction. The STATE SECURITIES COMMISSION guidelines the escrow rates with money or stock after the Ministry of finance approved.
8. The transfer of securities, registration of transactions must be made via SGDCK. The transfer referred to in Paragraph 2 of article 3 of this circular was made through TTLKCK and to publish information on the SGDCK.
9. Securities firms make stock purchase, fund the odd batch of investors as the price agreement or the odd batch transaction organizations for clients under the guidance of the STATE SECURITIES COMMISSION.
Article 8. Stock in the transaction: 1. Investors made the reverse transaction (buy, sell) the same types of securities in the trading day, when the following conditions are met: a) using an open account at a securities company to make both buying and selling order;
b) Just be buying (or selling) a type of securities if the selling order (or purchase) of securities of the same type before it was done and the transaction commands must meet the requirement of depositing rate as defined in paragraph 7, article 7 of this circular.
c) stock company, depository banks is responsible for checking the validity of the purchase/sale orders of investors.
2. The investor was not allowed: a) transaction that does not result in the change of ownership of securities;
b) simultaneously place orders to buy and sell the same stocks in each match of commands on the same account or a different account which stands the name property.
Article 9. Authorized trading account 1. When investors open accounts can stock transaction authorised in the following cases:

a) transaction authorization in writing to the company or Bank Securities depository transactions instead. When the transaction is authorized, the company/depository bank securities on behalf of investors made trades and must comply with the regulations on transactions, securities payments disclosure obligations, and responsible to the investors about the authorized content;
b) transaction authorization in writing to the individual instead of the transaction must ensure:-Has confirmed the local government authorized or certified in accordance with the law;
-Authorized contracts must specify the scope of the authorization;
-A person authorized is not done dealing with yourself or with your third person is authorized.
2. securities company employees are not allowed to receive authorized by investors.
3. Investors to open stock trading accounts are obliged to report large shareholder on the total number of securities in the accounts and the disclosure of information under the provisions of the law.
Article 10. Stock trading funds 1. The organization listed, registration organization of transactions acquired, sold stock funds on SGDCK made under the provisions of the law. SGDCK issued specific instructions about rules of transaction stock funds after being approved by the STATE SECURITIES COMMISSION.
2. in case of selling off stock funds, the company must report the STATE SECURITIES COMMISSION at least seven (7) days before the date of the transaction.
3. The organization listed, registration organization of transactions was the acquisition of odd-lot shares investor to do stock funds. The organization listed, organizations registered in the stock buy back transaction batches of travellers must ensure funds bought stock funds as stipulated by law and must not restrict the term odd lot shares sold were bought to do stock funds.
Article 11. Stock escrow transactions 1. Securities firms made escrow transactions after the report with the STATE SECURITIES COMMISSION.
2. Investors who wish to perform escrow transaction to open escrow account at a securities company where investors to open stock trading accounts. In every securities firm where investor to open a trading account, investors are only allowed to open one (1) escrow account. Securities companies have to manage separate escrow account of the investors with the other account.
3. Securities trading margin allowed is stocks, investment fund certificates are listed on the SGDCK meet the requirements on securities trading margin allowed under the provisions of the STATE SECURITIES COMMISSION. The securities company has the obligation to publicize the list of securities that the company perform escrow transactions.
4. the securities company has the obligation to report periodically, the report at the request of the escrow transaction operations with the STATE SECURITIES COMMISSION, SGDCK and TTLKCK.
5. In case of need, to ensure the safety of the operation of the stock market, the STATE SECURITIES COMMISSION can ask the securities company to temporarily stop trading margin.
6. STATE SECURITIES COMMISSION specifies the escrow transaction business for securities firms.
Article 12. The case of the securities being managed SGDCK specifies conditions, measures, the duration of application of measures for the stock trading case on SGDCK in an been warnings, control, suspension of transactions and trading suspension after being approved by the STATE SECURITIES COMMISSION.
Article 13. Prohibited transactions 1. Prohibited transactions include: insider trading, market manipulation and trading transactions prohibited under the provisions of other laws;
2. The violations of securities transactions are processed in accordance with the law.
Article 14. Reporting and monitoring 1. SGDCK, TTLKCK implement reporting stock situation with the STATE SECURITIES COMMISSION.
2. SGDCK, TTLKCK subject to supervision of the STATE SECURITIES COMMISSION on stock transactions.
Chapter III IMPLEMENTATION article 15. Terms of implementation 1. The STATE SECURITIES COMMISSION is responsible for the promulgation of regulations for specific instructions. The SGDCK, the TTLKCK is responsible for enacting the Statute guidelines, business processes and monitoring compliance with the trading activities of members after being approved by the STATE SECURITIES COMMISSION.
2. This circular effect since 01/08/2011.
3. The amendments and supplements to this circular by the Minister of finance decides to./.