This is the important content prescribed at the Circular No. 10/2017/TT-BTC dated February 06, 2017 of the Ministry of Finance on amending and supplementing a number of articles of the Circular No. 234/2012/TT-BTC dated December 28, 2012 of the Ministry of Finance on management of transactions in government bonds, government-backed bonds and municipal bonds.
In particular, from September 01, 2017, beside the cases that a member fails to maintain the satisfaction of membership eligibility requirements; member commits a serious or systematic violation against regulations on trading members in government bonds at Hanoi Stock Exchange in accordance with current regulations, security companies and commercial banks shall be terminated as the member of government bonds in Hanoi Stock Exchange when a member is dissolved, declared bankrupt or has its license for establishment and operation revoked; or an entity no longer exists after it is consolidated (consolidating enterprise), or merged (transferor enterprise), or divided (divided enterprise); or an entity is established after the merger (transferee enterprise) or partial division (divided enterprise) but it fails to meet all of membership eligibility requirements.
Another important content is the regulations on state fund management of State Treasuries. State Treasuries may conduct purchase transactions in the purchase and resale transactions in government bonds via the government bond trading system of Hanoi Stock Exchange provided the maximum period for purchase and resale transactions shall not exceed 03 months and State Treasuries must pay transaction-related service fees in accordance with prevailing laws. State Treasuries may use trading systems and services provided by Hanoi Stock Exchange and the Vietnam Securities Depository.
Also in accordance with this Circular, lending of government bonds shall be conducted upon the lending agreement between the parties and via the Hanoi Stock Exchange’s trading system or the securities lending system of the Vietnam Securities Depository provided only trading member who is also a bidder may borrow government bonds for sale in accordance with Hanoi Stock Exchange’s regulations; borrowing duration shall not exceed 180 days and the remaining duration of government bonds..
This Circular takes effect on September 01, 2017.
Source: http://english.luatvietnam.vn/default.aspx?tabid=720
