Thông tư 06/2013/TT-NHNN

CIRCULAR

GUIDING THE TRADING OF GOLD BULLION IN DOMESTIC MARKET OF THE STATE BANK OF VIETNAM

Pursuant to the Law on the State Bank of Vietnam No. 46/2010/QH12 of June 16, 2010;

Pursuant to the Law on Credit Institutions No. 47/2010/QH12 of June 16, 2010;

Pursuant to Decree No. 96/2008/ND-CP of August 26, 2008 of the Government defining the functions, tasks, powers and organizational structure of the State Bank of Vietnam;

Pursuant to Decree No. 86/1999/ND-CP of August 30, 1999 of the Government of the State management of foreign exchange reserves;

Pursuant to Decree No. 24/2012/ND-CP of April 3, 2012 of the Government on management of gold trading activities;

Pursuant to Decision No. 16/2013/QD-TTg of March 4, 2013 of the Prime Minister on the purchase and sale of gold bullion in the domestic market of the State Bank of Vietnam;

At the proposal of Director of Foreign Exchange Management Department;

The Governor of the State Bank of Vietnam issues Circular guiding activities of trading of gold bullion in the domestic market of the State Bank of Vietnam,

Chapter 1.

GENERAL PROVISION

Article 1. Scope of regulation and subject of application

This Circular guides the purchase and sale of gold bars between the State Bank of Vietnam (hereinafter referred to as the State Bank) with the credit institutions or enterprises granted license for trading of gold bullion.

Article 2. Explanation of terms

In this Circular, the terms below are construed as follows:

1."Transaction representative of credit institution and enterprise" is the legal representative of the credit institution and enterprise in the trading and sale of gold bullion with the State Bank.

2. “Direct trading of gold bullion" is a form of trading in which the State Bank decides and announces the price, quantity and partner making purchase and sale of gold bullion.

3. “Trading of gold bullion through tender” is a form of trading in which the State Bank carries out tender to determine the partner, price and amount of gold bullion to be sold and purchased.

4.  “Tender by price” is a form of tender which the members taking part in the tender offering different bidding price to determine the price and volume of gold bullion of winning the tender.

5. “Tender by volume” is a form of tender which the participating members register the bid volume to determine bid winning volume at the price announced by the State Bank.

6. “Batch of gold bullion” is volume unit in the trading of gold bullion between the State Bank with the credit institution and enterprises. The quantity of a batch of gold bullion is decided and announced by the State Bank before the time of transaction

Chapter 2.

ESTABLISHING TRADING RELATION OF GOLD BULLION BETWEEN THE STATE BANK AND CREDIT INSTITUTION AND ENTERPRISES

Article 3. Dossier and procedures for establishment of trading relation of gold bullion with the State Bank

1. Credit institutions or enterprises trading in gold bullion and wishing to participate in trading gold bullion with the State Bank shall submit directly or send by post 01 (one) set of dossier to register the establishment of trading relation of gold bullion to the State Bank (Exchange). The dossier includes:

a) Application for establishment of trading relation of gold bullion with the State Bank (under the form provided in Appendix 1);

b) Certificate of enterprise registration or certificate of business registration (certified copy);

c) Registration document of signature sample of the transaction representative of credit institutions or enterprises (under the form provided in Appendix 2);

d) Authorization document of credit institutions or enterprises to the transaction representative in case he/she is the authorized representative.

2. Within 05 (five) working days from the date of receiving complete and valid dossiers, the State Bank (Exchange) shall notify the credit institutions or enterprises in writing confirming the establishment of trading relations of gold bullion with credit institutions or enterprises (under the form provided in Appendix 3). In case of refusal of establishment of trading relation of gold bullion, the State Bank (Exchange) shall notify in writing to the credit institutions or enterprises and specify the reason.

3. In case the contents of the documents are changed specified at Point a, Point b, Clause 1 of this Article, within 5 (five) working days from the date of the change, the credit institutions or enterprises must notify in writing to the State Bank (Exchange) together with the relevant documents.

Article 4. Transaction representative of credit institutions or enterprises

1. The transaction representative of credit institutions or enterprises is the legal representative of credit institutions or enterprises or the authorized representative.

2. Each credit institution or enterprise is permitted to register a maximum of 03 (three) transaction representatives.

3. In case the transaction representative of the credit institutions or enterprises is the authorized representative, the authorization document must be signed by the legal representative. The scope of authorization shall include the minimum contents as follows: signing and receiving documents and performing relevant duties during the process of tender (for the form of tender), receiving announcement of sale and purchase price of gold bullion, signing application for registration of trading of gold bullion, receiving announcement of volume of gold bullion to be sold and purchased (for direct trading), signing confirmation document of trading of gold bullion with the State Bank.

4. When changing transaction representative, the credit institutions or enterprises must notify in writing to the State Bank (Exchange) together with authorization document (in case of authorization) and registration document of sample signature of the new transaction representative of the new transaction. The change of transaction representative is only valid from the time the State Bank (Exchange) receives notice, together with the relevant documents.

5. Each credit institution or enterprise is allowed to appoint only 01 (one) transaction representative in the list registered to participate in a transaction of trading of gold bullion with the State Bank.

6. The transaction representative of credit institutions or enterprises upon participating in transaction must present identity card or passport.

Article 5. Suspension of transaction and cancellation of trading relation of gold bullion

1. The State Bank shall suspend the trading of gold bullion with credit institutions or enterprises for 03 (three) months from the time of detection of one of the following violations:

a) The credit institutions or enterprises violates obligation of signing to certify the transaction under process of trading of gold bullion with the State Bank.

b) The credit institutions or enterprises violates obligation of payment, delivery and receiving of gold bullion by transaction confirmation with the State Bank for 03 (three) times

c) The credit institutions or enterprises violates 03 (three) times regulations on information and report in this Circular.

d) The credit institutions or enterprises are subject to administrative sanctioning in gold trading activities

2. The State Bank shall suspend the transaction of trading of gold bullion with credit institutions during these credit institutions are under the state of special control.

3. The State Bank shall cancel transactions of trading of gold bullion with credit institutions or enterprises in the following cases:

a) The credit institutions or enterprises have been revoked their license for establishment and operation or certificate of business registration, certificate of enterprise registration.

b) The credit institutions or enterprises have been revoked their license for trading of gold bullion

4. The credit institutions or enterprises must not re-establish trading relation of gold bullion with the State Bank within 01 (one) year from the date of cancellation of trading relation of gold bullion. Dossier and procedures for re-establishment of trading relation of gold bullion with the State Bank of the credit institutions or enterprises shall comply with the procedures specified in Article 3 of this Circular.

Chapter 3.

TRADING OF GOLD OF THE STATE BANK

Article 6. Type of gold bullion to be traded

The State Bank shall trade in gold bullion with content of 99,99%, type of 01 (one) tael produced by the State Bank or permitted for production in the periods.

Article 7. Form of trading of gold bullion.

1. Direct trading of gold bullion;

2. Trading of gold bullion through tender by price or by volume

Article 8. Transaction documents

Trading of gold bullion each time between the State Bank with the credit institutions or enterprises is shown by the following documents:

1. For direct trading:

a) Announcement of trading of gold bullion, announcement of trading price of the State Bank.

b) Application for registration of trading of gold bullion of the credit institutions or enterprises;

c) Announcement of trading volume of gold bullion of the State Bank;

d) Confirmation document of transaction

2. For trading through tender

a) Announcement of tender, sale and purchase price (for tender by volume), floor price and ceiling price (for tender by price) of the State Bank.

b) Tender offer of the credit institutions or enterprises;

c) Announcement of tender result;

d) Văn bản xác nhận giao dịch Confirmation document of transaction

Article 9. Transaction account

1. The credit institutions or enterprises shall make a deposit and payment to the State Bank through an account notified by the State Bank.

2. The State Bank shall return the deposit and make payment to the credit institutions or enterprises through accounts registered by the credit institutions or enterprises upon the establishment of trading relations of gold bullion.

Article 10. Deposit

1. The credit institutions or enterprises must make a deposit in order to secure obligation of confirmation and implement the trading of gold bullion with the State Bank.

2. The value of deposit of credit institutions or enterprises upon trading of gold with the State Bank is calculated by the following formula:

Deposit value = Deposit ratio x Reference price x Reference volume

In which:

Deposit ratio: Ratio in percent (%);

Reference price: Calculated in VND/tael;

Reference volume: is the minimum volume of gold bullion traded (for direct trading), the minimum volume of gold bullion bid of a credit institution or enterprise (for tender), or volume of gold bullion which the credit institutions or enterprises have registered the trading (for direct trading) or volume of gold bullion bid of each credit institution or enterprise (for tender).

Deposit ratio, reference price and reference volume shall be announced by the State Bank before each time of trading organization.

Article 11. Plan for trading of gold bullion of the State Bank

1. Foreign Exchange Management Department shall coordinate with the Department of Monetary Policy and the Exchange to prepare and present the head of executive committee of foreign exchange reserves for approval in order to submit it to the Governor for approval of the gold bullion trading plan to interfere into gold market in each period.

2. Plan for trading of gold bullion includes the contents:

a) Time of interference;

b) Type of gold bullion to be traded;

c) Total volume of gold bullion to be traded for interference; Volume of gold bullion of a batch for trading. The maximum or minimum volume of gold bullion in a transaction with a partner; price step, bidding volume step;

d) Form of trading;

e) Expected subject of trading;

g) Principle to determine the trading (for direct trading); principle to determine the purchase and sale price (for the form of tender by volume), Principle to determine the floor and ceiling price (for tender by price)

h) Deposit ratio, reference volume and principle to determine the reference price;

i) The principle and ground to determine the price and fluctuation of gold price to decide to stop the trading in case of direct trading or cancel the tender.

k) The trading of gold on accounts in foreign countries or purchasing gold from foreign countries for import of gold or making sale of gold to foreign countries to correspond to the volume of gold traded for interference.

3. After the plan for trading of gold bullion has been approved, the Exchange shall coordinate with Department and Administration concerned of the State Bank for implementation.

Article 12. Process of trading of gold bullion of the State Bank

1. The process of trading of gold bullion of the State Bank directly between the State Bank with credit institutions or enterprises as follows:

a) The State Bank (Exchange) announces the trading of gold bullion;

b) The credit institutions or enterprises make deposit;

c) State Bank (Exchange) checks and notifies the capacity for participating in trading of the credit institutions or enterprises;

d) The State Bank (Exchange) announces trading price;

e) The credit institutions or enterprises register volume of trading;

g) State Bank announces the stoppage of trading (if any);

h) The State Bank (Exchange) determines and announces volume of trading to each institution or enterprise;

i) Determination of trading;

k) Payment, delivery and receiving gold bullion.

l) Deposit processing;

2. Process of trading of gold bullion through the form of tender between the State Bank the institutions or enterprises as follows:

a) State Bank (Exchange) announces the tender of trading of gold bullion;

b) The institutions or enterprises make a deposit;

c) Checking and announcing tender capacity of the institutions or enterprises;

d) State Bank (Exchange) announces trading price (for tender by volume) or floor ceiling and/or ceiling floor (for tender by price);

e) The institutions or enterprises submit their tender offer of trading of gold bullion;

f) The State Bank evaluates the tender;

g) The State Bank announces cancellation of tender (if any);

h) The State Bank (Exchange) announces the tender result;

i) Confirmation of transaction;

j) Payment, delivery and receiving of gold bullion;

k) Deposit processing.

3. Contents specified at Point a, b, c, d, e, g, h, i, Clause 1 and Point a, b, c, d, e, g, h, i, k, Clause 2 of this Article shall comply with provisions of the Process of trading of gold bullion of the State Bank of Vietnam State Bank issued by the Governor.

Article 13. Confirmation of transaction

Within 30 (thirty) minutes from the time of announcing volume, trading price with each institution or enterprise (for direct trading) or announcing tender result (for tender), the transaction representative of the institutions or enterprises may trade in gold bullion (for direct trading) or tender winning (for tender) must sign to certify the trading of gold bullion with the State Bank.

Article 14. Announcement of transaction result.

The Exchange shall notify in writing the Foreign Exchange Management, Department of Finance and Accounting, the Issue and Vault Department on the trading results of gold bullion with each credit institution and enterprise after signing to certify the transaction.

Article 15. Time limit for payment, delivery and receiving of gold bullion

1. Trường hợp Ngân hàng Nhà nước bán vàng miếng In case the State Bank sells gold bullion:

a) The credit institutions or enterprises must pay full amount to purchase gold bullion certification according to transaction confirmation to the payment account of the State Bank within the working day following the signing day of the confirmation document of transaction.

b) At the end of the signing day of transaction confirmation and at the end of the working day following the signing day of transaction confirmation, the Exchange makes a list of credit institutions or enterprises that have fully paid the amount of money for purchase of gold bullion during the day and notifies in writing to the Department of Finance and Accounting, the Issue and Vault Department to perform the procedures for delivery of gold bullion for the credit institutions or enterprises as defined at Point (c) of this Clause.

c) In the working day following the signing day of transaction confirmation, the State Bank (the Issue and Vault Department) shall deliver gold to the credit institutions or enterprises that have fully paid the amount of money for purchase of gold to the State Bank in the signing day of transaction confirmation; In the following second working day after the signing day of transaction confirmation, the State Bank (the Issue and Vault Department) shall deliver gold to the credit institutions or enterprises that have fully paid the amount of money for purchase of gold to the State Bank in the working day following the signing day of transaction confirmation.

d) In case the delivery of gold is different from the time limit specified at Point b and c, Clause 1 of this Article, the State Bank shall notify the credit institutions or enterprises in the announcement of trading of gold bullion or in the tender notice.

2. In case the State Bank purchases gold bullion:

a) The credit institutions or enterprises shall deliver gold bullion to the State Bank within 01 (one) working day after the signing day of confirmation document of transaction

b) Right after the end of delivery and receiving of gold bullion, the Issue and Vault Department) shall notify in writing to the Exchange for making payment to the credit institutions or enterprises.

c) The State Bank (Exchange) shall make payment to the credit institutions or enterprises within 01 (one) working day after the end day of delivery and receiving of gold bullion.

Article 16. Processing deposit of the credit institutions or enterprises

1. The State Bank shall not refund deposit and notify in writing the credit institutions or enterprises in case the credit institutions or enterprises permitted for trading of gold bullion with the State Bank (for direct trading) or winning tender (for tender) violate their obligations under Article 13, Point a, Clause 1 and Point a, Clause 2, Article 15 of this Circular.

2. Except for the cases specified in Clause 1 of this Article, the State Bank (the Exchange) shall refund deposit to the credit institutions or enterprises through accounts registered by the credit institutions or enterprises with the State Bank in the following period:

a) In the transaction day for the case the State Bank stops the trading or cancels the tender and the case the credit institutions or enterprises are not permitted for trading or has not won tender.

b) In the working day following the transaction day for the credit institutions or enterprises purchasing gold bullion of the State Bank.

c) In 02 (two) working day following the transaction day for the credit institutions or enterprises selling gold bullion of the State Bank.

Article 17. Delivery and receiving of gold bullion

The delivery and receiving of gold bullion in the trading of gold bullion between the State Bank with the credit institutions or enterprises are done at the location as announced by the State Bank and prescribed by the State Bank.

Article 18. Unforeseen events or objective obstacles.

1. In case the parties cannot perform obligations to confirm the transaction, payment, delivery and receiving of gold within the prescribed time limit due to unforeseen events or objective obstacles, then the time of occurrence of the unforeseen events or objective obstacles may not included in the time limit specified in Article 13 and 15 of this Circular.

2. The parties shall notify the other parties immediately of the unforeseen events or objective obstacles.

Chapter 4.

RESPONSIBILITIES OF THE CREDIT INSTITUTIONS OR ENTERPRISES PERMITTED FOR TRADING OF GOLD BULLION WITH THE STATE BANK AND RESPONSIBILITIES OF THE UNITS UNDER THE STATE BANK

Article 19. Responsibilities of the credit institutions or enterprises permitted for establishing the trading relation of gold bullion with the State Bank.

1. Ensuring the quality and quantity of gold bullion sold to the State Bank;

2. Ensuring the safety for the gold upon transport from or to the storage of the State Bank;

3. Making payment and delivering gold in full and on time as stipulated in this Circular when purchasing and selling gold with the State Bank;

4. Taking responsibilities for the authentication of competence of the transaction representative in the trading of gold bullion with the State Bank; Taking responsibilities for the obligation arising from the behaviour done by the transaction representative and from the trading of gold bullion confirmed by the transaction representative with the State Bank as stipulated in this Circular;

5. Taking responsibilities for the truthfulness, accuracy and legality with respect to documents and dossiers sent to the State Bank related to the trading of gold bullion with the State Bank;

6. In the case of division, separation, merger, consolidation, acquisition, transformation of legal form, dissolution, bankruptcy, the credit institutions or enterprises must notify in writing to the State Bank (Exchange) within 05 (five) working days from the date of the decision of the competent state agencies of the division, separation, merger, consolidation, acquisition, transformation of legal form, dissolution and bankruptcy.

7. After purchasing gold bullion from the State Bank, before 14h00 daily, the credit institutions or enterprises shall make a report to the State Bank (Foreign exchange management Department) on the use the gold bullion purchased from the State Bank in the preceding working day (under the form in Annex 4 together with this Circular). The report shall be ended when the credit institutions or enterprises use up the volume of gold bullion purchased from the State Bank.

8. Other responsibilities are specified in this Circular.

Article 20. Responsibilities of the Exchange

1. Coordinating with the Foreign exchange management Department to request the Governor of the State Bank to consider and suspend the trading or cancellation of trading of gold bullion with the credit institutions or enterprises as specified in Article 5 of this Circular; Notifying the credit institutions or enterprises of the State Bank’s decision on the suspension of the trading and cancellation of trading relation of gold bullion.

2. Performing payment obligation of trading of gold bullion.

3. Notifying in writing the credit institutions or enterprises of the non-refundable deposit.

4. Notifying and updating for the banking inspection and supervision agency, Foreign exchange management Department of the list of credit institutions or enterprises that have established their trading relation of gold bullion with the State Bank.

5. Coordinating with the Foreign exchange management Department and Monetary Policy Department make plans on trading of gold bullion of the State Bank.

6. Coordinating with the Foreign exchange management Department to determine the price of trading of gold bullion (for direct trading and tender by volume), floor and ceiling price (for tender by price) under the approved trading plan.

7. Other responsibilities as prescribed in this Circular.

Article 21. Responsibilities of Foreign exchange management Department

1. Assuming the prime responsibility and coordinating with units concerned to make plans on trading of gold bullion.

2. Notifying in writing the Exchange of the cases of violation of provision specified in Clause 7, Article 19 of this Circular.

3. Assuming the prime responsibility and coordinating with the Exchange to determine the trading price of gold bullion (for direct trading and tender by volume), floor and ceiling price (for tender by price) under the approved trading plan.

4. Implementing other duties as prescribed in this Circular.

Article 22. Responsibilities of the Monetary Policy Department

Coordinating with the Foreign exchange management Department and Exchange to make plan on trading of gold bullion of the State Bank in accordance with the objectives of monetary policy in each period.

Article 23. Responsibilities of the Issue and Vault Department

1. Assuming the prime responsibility and coordinating with the relevant units to regulate the amount of gold bullion in the storage of the State Bank to serve the trading of gold bullion of the State Bank.

2. Notifying in writing to the Exchange of the violation of obligation to deliver gold bullion of the credit institutions or enterprises as a basis for deposit processing specified in Article 16 of this Circular and for temporary transaction specified in Clause 1, Article 5 of this Circular.

3. Implementing other duties as prescribed in this Circular.

Article 24. Responsibilities of the Department of Finance and Accounting

1. Guiding the accounting of trading operation of gold in the domestic and international market of the State Bank, including the accounting of income and the related incurred costs.

2. Co-operating with the Issue and Vault Department to implement the export and transfer of gold in the storage of the State Bank.

Article 25.Responsibilities of the banking inspection and supervision agency

1. Notifying in writing to the Exchange of the information specified at Point d, Clause 1, Clauses 2 and 3, Article 5 of this Circular.

2. Performing the inspection and supervision of the trading of gold bullion of the credit institutions and enterprises with the State Bank as prescribed by law.

Chapter 5.

IMPLEMENTATION PROVISION

Article 26. Implementation effect and responsibility

1. This Circular takes effect on March 13, 2013.

2. The Chief of the Secretariat, Director of Foreign Exchange Management Department and heads of units of the State Bank, Director of State Bank branches in central-affiliated provinces and cities; Chairman of the Board, Chairman of the member Council, Chairman of the company, General Director (Director) of the credit institutions and enterprises trading in gold bullion with the State Bank and other relevant organizations and individuals are liable to execute this Circular.