Quyết định 563/QD-NHNN

DECISION

PROMULGATING THE PROCESS OF GOLD BAR PURCHASE OR SALE 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 the Government’s Decree No. 96/2008/ND-CP of August 26, 2008, defining the functions, tasks, powers and organizational structure of the State Bank of Vietnam;

Pursuant to the Government’s Decree No. 24/2012/ND-CP of April 03, 2012 on management of gold business activities;

Pursuant to the Decision No. 16/2013/QD-TTg of March 04, 2013 of the Prime Minister on purchase and sale of gold bars in domestic market of the State bank of Vietnam;

Pursuant to the Circular No. 06/2013/TT-NHNN of March 12, 2013 of the State bank of Vietnam, on guiding purchase or sale of gold bars in domestic market of the State Bank of Vietnam  

At the proposal of Director of Foreign Exchange Management Department,

DECIDES:

Article 1. To promulgate together with this Decision the Process of gold bar purchase or sale of the State Bank of Vietnam

Article 2. This Decision takes effect on March 18, 2013.

Article 3. Chief of Office, Director of Foreign Exchange Management Department and Head of units under the State Bank of Vietnam, credit institutions, enterprises of gold bar purchase or sale, relevant organizations and individual shall implement this Decision./.

PROCESS OF

GOLD BAR PURCHASE OR SALE OF THE STATE BANK OF VIETNAM
(Promulgated together with the Decision No. 563/QD-NHNNof March 18, 2013, of the State bank of Vietnam)

SECTION 1. GENERAL PROVISIONS

Article 1. Scope of regulation

This Process specifies the direct purchase or sale of gold bars and the purchase or sale of gold bars through bidding between the State bank of Vietnam (the State bank) and credit institutions, enterprises as prescribed in the Circular No. 06/2013/TT-NHNN of March 12, 2013 of the Governor of the State bank guiding the purchase or sale of gold bars in domestic market of the State bank of Vietnam (hereinafter abbreviated to “the Circular No. 06/2013/TT-NHNN”)

Article 2. General principle

The purchase or sale of gold bars between the State bank and credit institutions, enterprises is implemented on the basis of compliance with provisions of the Circular No. 06/2013/TT-NHNN this Process and the approved plan on gold bar purchase or sale.

SECTION 2. THE PROCESS OF GOLD BAR PURCHASE OR SALE THROUGH BIDDING

Article 3. Notification of gold bar bidding

Not later than in adjacent working day preceding day which the State bank holds bidding, the Transaction bureau shall send notification of bidding (set according to form in Annex 1) by fax to credit institutions, enterprises have set the relation in purchase or sale gold bars with the State bank under the registered fax numbers.

Article 4. Transfer of advance deposit

Not later than 17: 00 of adjacent working day preceding day which the State bank holds the gold bar bidding, credit institutions, enterprises must transfer advance deposit into account of the State bank in according to the notification of bidding.

Article 5. Examination and notification of bid qualification of credit institutions, enterprises

1. Within 01 (one) hour after the State bank begins bidding, the Transaction bureau shall examine the advance deposit of credit institutions, enterprises on accounts under notification of the State bank and examine personal identification papers of transaction representative of credit institutions, enterprises.

2. The advance deposit of a credit institution or enterprise is valid for participating in bidding when it is more than or equal to the deposit value calculated according to the formula: Deposit value = Rate of deposit x Referenced price x Minimal bid volume of gold bars.

3. A credit institution or enterprise is not qualified to participate in gold bar bidding with the State bank in the following cases:

a) It is in duration of temporary suspension of transaction relation or it is canceled transaction relation.

b) Its representative fail to present his/her personal identification papers in accordance with regulation;

c) The personal identification papers are invalid;

d) The participant is not the  transaction representative who has been registered by itself;

e) It fails to abide by regulation on deposit as prescribed in clause 2 this Article.

4. The Transaction bureau shall notify in writing to credit institutions or enterprises that are not qualified to participate in gold bar bidding with the State bank, of which clearly stating reason.

Article 6. Notification of price

The Transaction bureau shall notify to the transaction presentatives of credit institutions, enterprises of ceiling prices, floor prices (if any) for bidding under prices, (according to form set in Annex 2a) or purchase price, sale price for bidding under volume (according to form set in Annex 2b).

Article 7. Submission of joining-bid card

Within 30 (thirty) minutes after the Transaction bureau notify prices as prescribed in Article 6 of this Process, the transaction representatives of credit institutions, enterprises shall full fill contents of joining-bid card (according to form set in Annex 3a for bidding under price, according to form set in Annex 3b for bidding under volume) and submit their joining-bid cards.

Article 8. Closure and opening of bidding

1. The State bank (the Transaction bureau) shall close bidding at time ending time limit of submission of joining-bid cards. After closing bidding, the State bank (the Transaction bureau) shall refuse receipt of joining-bid cards of credit institutions and enterprises.

2. Within 10 (ten) minutes after closing bidding, the State bank (the Transaction bureau) shall open bidding.

Article 9. Implementing consideration of bidding and defining result of bidding

Within 01 (one) hour) after openning the bidding, the the State bank (Transaction bureau) shall synthesize figures of bid, consider the bidding and define result of bidding as follows:

1. Examine validity of joining-bid cards and make list of valid and invalid joining-bid cards and synthesize figures of bid. A joining-bid card is invalid in the following cases:

a) A credit institution, or enterprise is not qualified to participate in gold bar bidding but it still file the joining-bid card.

b) One of contents filled in the joining-bid card is improper with regulation such as the price of bid is higher than ceiling price (in case the State bank has notified ceiling price) or lower than floor price (in case the State bank has notified floor price); volume of bid is higher than the maximum level or lower than the minimal level which each credit institution, or enterprise is allowed to bid; filling price and volume in improper with price step and volume step; writing more than a price level; figures in numbers and in words are not consistent; repairing, erasing contents filled in the joining-bid card; failing to write full content of the joining-bid card, etc.

c) The joining-bid card is submitted after time of bid closure.

2. Examine validity of advance deposit in case the referenced volume to calculate the deposit value is the estimated volume of bid. The advance deposit of a credit institution or enterprise is invalid when it is less than the valid deposit value calculated according to the formula: Valid deposit value = rate of deposit x referenced price x volume of gold bars for bid.

3. Principles of bid consideration for bidding under volume:

a) If total bid volume of credit institutions, enterprises joining in bidding is equal or less than the total volume estimated for purchase or sale by the State bank, the volume winning bid of each credit institution, enterprise will be equal the bid volume of itself.

b) If total bid volume of credit institutions, enterprises joining in bidding exceeds the total volume estimated for purchase or sale by the State bank, the volume winning bid of credit institutions, enterprises will be defined under principle of begining from the highest bid volume to lower one until the State bank purchase or sell all maximum volume estimated for purchase or sale. If at the lowest volume level of winning bid, there are by many credit institutions and enterprises make bid for purchase or sale with the same volume, the remaining volume in need for purchase or sale will be divided evenly for such credit institutions and enterprises.   If volume of winning bid have odd, it will be rounded down for even block. 

4. Principles of bid consideration for bidding under price:

a) Principle of bid consideration is consider according to the descending order from the highest price winning bid to the lowest price winning bid at which the State bank may sell the maximum estimated volume for sale (in case the State bank sells gold bars) or consider according to the ascending order from the lowest price winning bid to the highest price winning bid at which the State bank may buy the maximum estimated volume for purchase (in case the State bank hold bidding to purchase gold bars). If at the lowest price winning bid (in case the State bank sells gold bars) or at the highest price winning bid (in case the State bank buys gold bars), there are many credit institutions, enterprises make bid with a same price level, the volume winning bid of each such credit institution or enterprise will be defined under the direct proportion between the remaining volume needs buy or sell and the bid volume of each such credit institution or enterprise.  If volume of winning bid have odd, it will be rounded down for even block.

b) Price winning bid of each credit institution, enterprise is bid price of itself.

Article 10. Cancellation of bidding

Before time of notification of prices or notification of bidding result, if gold price's changes exceed the changes of prices in the approved plan on purchase or sale gold bars, the Transaction bureau may cancel bidding and notify to credit institutions, enterprises joining in bidding. 

Article 11. Notification of bidding result

After defining the bidding result, the State bank (The Transaction bureau) shall notify in writing:

1. Synthesized result of bidding (made according to form in Annex 4).

2. The result of bid winning for each credit institution, enterprise which has valid joining-bid card through its transaction representative (made according to Annex 5).

3. Refarding invalid joining-bid card, notify to each credit institution, enterprise which has invalid joining-bid card through its transaction representative (made according to Annex 6).

Article 12. Signing the written confirmation on transaction of gold bar purchase or sale

Within 30 (thirty) minutes after the State bank (the Transaction bureau) notify the bidding result, the transaction representatives of credit institutions, enterprises winning bid must sign a written confirmation on transaction of gold purchase or sale with the State bank (the Transaction bureau) (made according to the form in Annex 7).

SECTION 3. PROCESS OF DIRECT GOLD BAR PURCHASE OR SALE

Article 13. Notification of gold bar purchase or sale

Not later than in adjacent working day preceding day which the State bank holds transaction of purchase or sale of gold bars, the Transaction bureau shall send notification of gold bar purchase or sale (set according to form in Annex 8) by fax to credit institutions, enterprises have set the relation in purchase or sale of gold bars with the State bank under the registered fax numbers.

Article 14. Transfer of advance deposit

Not later than 17: 00 of adjacent working day preceding day which the State bank holds purchase or sale of gold bars, credit institutions, enterprises must transfer advance deposit into account of the State bank in according to the notification of purchase or sale of gold bars.

Article 15. Examination of qualification to join in transaction of credit institutions, enterprises

1. Within 01 (one) hour after the State bank begins holding purchase or sale of gold bars, the Transaction bureau shall examine the advance deposit of credit institutions, enterprises on accounts under notification of the State bank and examine personal identification papers of transaction representative of credit institutions, enterprises.

2. The advance deposit of a credit institution or enterprise is valid for participating in purchase or sale when it is more than or equal to the deposit value calculated according to the formula: Deposit value = rate of deposit x referenced price x volume of gold bars registered for purchase or sale.

3. A credit institution or enterprise is not qualified to participate in purchase of sale of gold bars with the State bank in the following cases:

a) It is in duration of temporary suspension of transaction relation or it is canceled transaction relation.

b) Its representative fail to present his/her personal identification papers in accordance with regulation;

c) The personal identification papers of transaction representative are invalid;

d) The participant is not the transaction representative who has been registered by itself;

e) It has deposit that is invalid as prescribed in clause 2 this Article.

4. The Transaction bureau shall notify in writing to credit institutions or enterprises that are not qualified to participate in purchase or sale of gold bars with the State bank, of which clearly stating reason.

Article 16. Notification of price of gold bar purchase or sale

The Transaction bureau shall notify in writing the price of purchase or sale of gold bars of the State bank to the transaction representatives of credit institutions, enterprises participating in the transaction (made according to the form in Annex 9).

Article 17. Registration of gold bar purchase or sale

Within 30 (thirty) minutes, after the Transaction bureau notify the purchase or sale price, the transaction representatives of credit institutions, enterprises shall submit registration for purchase or sale of gold bars to the State bank (made according to the form in Annex 10).

Article 18. Consideration of purchase or sale and defining of purchase or sale result

Within 01 (one) hour after ending submission of registration for purchase or sale, the State bank (Transaction bureau) shall consider registration for purchase or sale and define the purchase or sale result as follows:

1. Examine validity of registration for purchase or sale and make a list of valid or invalid registrations and summarize figures of registration for purchase or sale. A registration is invalid in the following cases:

a) A credit institution, or enterprise is not qualified to participate in purchase or sale of gold bars but it still file the registration for purchase or sale.

b) One of contents filled in the registration for purchase or sale is improper with regulation such as the volume registered for purchase or sale is higher than the maximum level or lower than the minimal level which is allowed to register by every credit institution or enterprise; figures in numbers and in words are not consistent; repairing, erasing contents filled in the registration for purchase or sale; failing to write full content of the registration for purchase or sale, etc.

c) The advance deposit of a credit institution or enterprise is invalid when it is less than the valid deposit value calculated according to the formula: Valid deposit value = Rate of deposit x Referenced price x Volume of gold bars registered for purchase or sale.

d) Registration for purchase or sale is filed after time limit specified in Article 17 of this Process.

2. The State bank (transaction bureau) define volume of gold bars to purchase or to sell with each credit institution, enterprise on the basis of their registration for purchase or sale and the approved plan on purchase of sale of gold bars.

Article 19. Notification of stopping transaction of gold bar purchase or sale

Before notifying result of gold bar purchase or sale, if gold price's changes exceed the change level of price in the approved plan on purchase or sale of gold bars, the Transaction bureau may stop the purchase or sale transaction and notify to credit institutions, enterprises joining in purchase or sale.

Article 20. Notification of purchased or sold gold bar volume

The State bank (the Transaction bureau) shall notify in writing to the transaction representatives of volume of gold bars which the State bank purchases or sells with each credit institution, enterprise (made according to the form in Annex 11).

Article 21. Signing the written confirmation of transaction

Within 30 (thirty) minutes after the State bank (the Transaction bureau) notify the purchase or sale result, the transaction representatives of credit institutions, enterprises joining in purchase or sale must sign a written confirmation on transaction of gold purchase or sale with the State bank (the Transaction bureau) (made according to the form in Annex 7).

SECTION 4. IMPLEMENTATION ORGANIZATION

Article 22. Team carrying out bidding

1. The State bank shall establish a Team carrying out bidding in order to help the Transaction bureau in holding of bidding for gold bar purchase or sale through bidding according to the approved plan on gold bar purchase or sale.

2. Members of the Team carrying out bidding include: Representative of the Transaction bureau’s Department-level leaders is head of team and members are representatives of units such as the Transaction bureau, Department of foreign exchange management, Department of internal audit, Department of Finance and Accounting, Department of issuance and treasury, Department of Informatic and technology, Legal Department and representative of other units. The Governor shall decide specific memebers in each period on the basis of suggestion of Director of transaction bureau.

3. The specific tasks of members of the Team carrying out bidding shall be assigned by the head of Team.

Article 23. Team of bidding assistance

1. Director of Transaction bureau shall establish a Team of bidding assistance in order to implement affairs relating to the process of gold bar purchase or sale through bidding.

2. Members of the team of assistance are officers of the Transaction bureau. The Director of Transaction bureau shall decide quantity of members, tasks of each member in each period.

Article 24. Implementation organization 

The Transaction bureau shall implement the process of and procedures for gold bar purchase or sale of the State bank in accordance with the Circular No. 06/2013/TT-NHNN this Process and the approved plan on gold bar purchase or sale.

All attached forms are not translated herein.