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The Vietnam Stock Exchange and the Vietnam Securities Depository and Clearing Corporation (VSDC) are only allowed to invest outside of enterprises in the field of securities and the stock market.
The Government has just issued Decree No. 59/2021/ND-CP stipulating several specific contents on financial management mechanism and performance evaluation for the Vietnam Securities Depository and Clearing Corporation.
According to the Decree, the Vietnam Stock Exchange and the Vietnam Securities Depository and Clearing Corporation are only allowed to invest outside of enterprises in the field of securities and the stock market. The format and authority of outward investment of the Stock Exchange of Vietnam and the Vietnam Securities Depository and Clearing Corporation shall comply with the provisions of the law on management, using state capital in the production of businesses and enterprises.
Revenue and expenses of the Vietnam Stock Exchange and the Vietnam Securities Depository and Clearing Corporation
Revenue and expenses of the two above-mentioned entities are managed according to the provisions of Article 30 of Decree No. 91/2015/ND-CP on investment of State capital in enterprises and management and use of capital and assets at enterprises, along with the guiding, amending, supplementing and replacing documents (if any). In which, the revenue of the Vietnam Stock Exchange include: Revenue from professional activities; revenue from service provision activities; revenue and income from capital investment activities in subsidiaries.
Revenue of Vietnam Securities Depository and Clearing Corporation includes revenue from professional activities and revenue from service provision. In addition to revenue from financial activities and other incomes as prescribed by law on management and use of State capital invested in production and business at enterprises, Vietnam Securities Depository and Clearing Corporation shall be accounted into revenue from financial activities for interest on deposits arising from the payment of dividends, principal and interest on government debt instruments, government-guaranteed bonds, and local government bonds, other securities and exercise the right to buy securities.
Financial management regulations
Regarding financial management regulations with subsidiaries of the Stock Exchange of Vietnam, the Decree clearly states that, based on the provisions of this Decree, the law on financial management and performance evaluation of State-owned enterprises and relevant legal regulations, the Vietnam Stock Exchange promulgates the Regulation on financial management and the Regulation on supervision and evaluation of the performance of subsidiaries.
Regulations on the financial management of subsidiaries include the following basic contents: Charter capital, capital mobilization and external capital investment; investment, construction, procurement of fixed assets, asset management.
Revenue of a subsidiary of the Vietnam Stock Exchange includes Revenue from professional activities (listing activities, securities trading, derivatives trading, bond bidding, securities auction, transfer of ownership of securities not through the trading system and other professional activities); Revenue from service provision (services providing information, technology infrastructure for the stock market, and other services); financial income and other income.
Subsidiaries of the Stock Exchange of Vietnam are allowed to account in revenue from financial activities for interest on deposits related to securities auction activities; expenses of the subsidiary; distribution of profit after tax and setting up of funds; Other contents as required by management.
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