Prepare procedures and operations to immediately apply the revised Circular

Removing "Pre-funding" obstacles: Prepare procedures and operations to immediately apply the revised Circular

According to Chairwoman of the State Securities Commission Vu Thi Chan Phuong, the units are coordinating to develop related technical procedures for synchronous implementation immediately after the Circular amending 4 Circulars takes effect.

Deputy Minister of Finance Nguyen Duc Chi speaks at the Conference

Recently, Deputy Minister of Finance Nguyen Duc Chi chaired a conference to discuss the draft Circular amending and supplementing a number of articles of the circulars regulating securities transactions on the securities trading system; clearing and settlement of securities transactions; activities of securities companies and information disclosure on the stock market.

At the Conference, Vice Chairman of the State Securities Commission (SSC) Bui Hoang Hai presented the main contents of the Draft Circular amendment and shared more information on two key issues in the Draft Circular.

First, regarding the criteria of not requiring sufficient funds when placing orders to buy shares of foreign investors (pre-funding) , this regulation applies to institutional foreign investors. Individual foreign investors still apply the margin level as per current regulations. The Draft Circular specifically stipulates the method of placing orders, receiving orders, and the mechanism for handling when foreign investors lack money. In particular, to manage risks for the payment system and the payment connection process between parties, the Draft Circular also stipulates that securities companies assess payment risks, customer creditworthiness and payment levels of each securities company to determine the limit for receiving orders to buy shares.

Second, regarding the criteria for ensuring equal access to investment activities of foreign investors, the Draft Information stipulates that listed organizations and public companies are responsible for disclosing information (CBTT) in Vietnamese and English according to a specific roadmap, subject and information disclosure.

Also at the Conference, Mr. Duong Ngoc Tuan - Deputy General Director of Securities Depository and Clearing Corporation also presented the securities transaction clearing and settlement process at VSDC when applying the mechanism of not having enough money before the transaction for foreign institutional investors.

Regarding the process of development and preparation for implementation, Chairwoman of the State Securities Commission Vu Thi Chan Phuong said that under the close direction of the Ministry of Finance, the State Securities Commission has promptly developed, consulted with relevant ministries and branches, and held many working sessions and discussions with market members, experts, and international organizations to complete the Draft. During the process of developing the Draft, the Chairwoman of the State Securities Commission said that this agency has carefully considered and reviewed to ensure fairness for all investors and market members when participating in the stock market.

Ms. Vu Thi Chan Phuong - Chairwoman of the State Securities Commission updated the process of developing and preparing to implement the revised Circular.

To meet the criteria for pre-funding requirements according to the rating agencies' upgrade standards, Ms. Vu Thi Chan Phuong said that the solution of not requiring sufficient pre-funding is a short-term solution. In the long term, the central clearing partner (CCP) model will still be implemented. "Currently, the units are coordinating to build related technical business processes for synchronous implementation as soon as the Circular takes effect," the head of the State Securities Commission also emphasized.

At the discussion session, the Conference received many consensus opinions from representatives of ministries, member securities companies, custodian banks, and designated payment banks.

Concluding the Conference, the Deputy Minister of Finance highly appreciated the consensus from representatives of ministries, sectors and market members, payment banks, depositories, depository corporations, securities companies, and related organizations.

"The drafting agency should promptly synthesize and complete the Draft Circular and prepare the operational procedures to apply it immediately after the Circular is signed and issued," Mr. Nguyen Duc Chi also emphasized the tasks in the coming time.

Source: https://baodautu.vn/go-vuong-pre-funding-san-sang-quy-trinh-nghiep-vu-de-ap-dung-ngay-thong-tu-sua-doi-d220912.html