Charter of VNX Organization and Operation Adopted

10:09:05 AM | 13/4/2021

The Ministry of Finance recently issued Decision 757/QD-BTC on promulgating the Charter on Organization and Operation of the Vietnam Stock Exchange (VNX).

VNX is a one-member limited liability company wholly owned by the government and is governed by the Law on Securities, the Law on Enterprises, the Law on Management and Use of State Capital invested in production and business in enterprises, relevant legal provisions and this charter.

VNX has a legal status, corporate seal, bank accounts in Vietnamese dong and foreign currencies opened at domestic commercial banks and the State Treasury. VNX will adopt the independent accounting regime.

The legal representative of VNX is its general director or a person assigned by the owner's representative agency to be the general director or the person assigned to be in charge of execution.

VNX will hold 100% of the registered capital of the Hanoi Stock Exchange (HNX) and the Hochiminh Stock Exchange (HSX).

VNX and its subsidiaries are established to run the securities trading market in accordance with the law on securities; ensure the progress of securities trading at the Stock Exchanges in a public, fair, orderly, secure and effective manner; and protect legitimate rights and interests of stock investors.

VNX’s registered charter is VND3 trillion, according to the Prime Minister’s Decision 37/2020/QD-TTg dated December 23, 2020 on the establishment, organization and operation of the Vietnam Stock Exchange.

VNX will take over the investment capital in its wholly-owned subsidiaries to organize the stock market in accordance with the Law on Securities, Decision 37/2020/QD-TTg and this Charter. It will invest in projects and companies engaged in securities and the equity market, invest in other economic entities to develop information technology infrastructure and develop securities services within its jurisdiction for the development of the Vietnamese stock market upon the receipt of approval of relevant authorities.

Any change to VNX’s registered capital is made in line with the law. VNX's working capital includes equity, mobilized capital and other lawful capital sources.

As for its wholly-owned subsidiary companies, VNX has the right to decide on establishment, registered starting capital, objectives, duties and lines of business after consulting its superior; and to adjust registered capital in the course of operation, reorganization, ownership transformation, dissolution and bankruptcy of subsidiary companies after consulting the superior.

VNX also develops and issues regulations on stock listing, stock trading, information disclosure, VNX members, and other professional regulations involved in organization and operation of the stock market; issue trading supervision criteria; and approve and cancel VNX membership.

Source: Vietnam Business Forum