A new draft decree from the Ministry of Finance (MoF) will see tighter supervision of the country's bourses and the Vietnam Securities Depository Centre (VSD).
The draft "Guidelines for the financial management and evaluation of performance of stock exchanges and VSD" will replace Circular 29/2010 which provides current guidelines for the regulatory and commercial functions of each market.
The new decree marks the first time the Ministry of Finance (MoF) has set criteria for managing the performance of both national bourses and the VSD.
The criteria will include revenue and profit targets, debt, compliance with tax codes, financial reporting and professional performance, including transaction volumes for each exchange and the number of securities registered at the VSD each year.
Evaluations will be based on comparisons between targets set by MoF and actual performance. In periods of market volatility, stress factors will be excluded from the criteria to provide an objective assessment.
Performance will be classified into three grades: A (exceeding targets), B (achieving targets) and C (failing to meet targets).
The MoF is consulting with market participants on the new draft. If adopted, it will take effect from January 1 next year.-VNA
The draft "Guidelines for the financial management and evaluation of performance of stock exchanges and VSD" will replace Circular 29/2010 which provides current guidelines for the regulatory and commercial functions of each market.
The new decree marks the first time the Ministry of Finance (MoF) has set criteria for managing the performance of both national bourses and the VSD.
The criteria will include revenue and profit targets, debt, compliance with tax codes, financial reporting and professional performance, including transaction volumes for each exchange and the number of securities registered at the VSD each year.
Evaluations will be based on comparisons between targets set by MoF and actual performance. In periods of market volatility, stress factors will be excluded from the criteria to provide an objective assessment.
Performance will be classified into three grades: A (exceeding targets), B (achieving targets) and C (failing to meet targets).
The MoF is consulting with market participants on the new draft. If adopted, it will take effect from January 1 next year.-VNA
