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Decree regulates credit rating firm operations

Update: October, 01/2014 - 08:06

According to the decree, credit rating firms must have a legal capital of VND15 billion (US$707,500), excluding the legal capital of other businesses that credit rating firms are allowed to operate. — Photo dddn

HA NOI (VNS) — The Decree 88/2014/ND-CP, issued last week to regulate the operations of credit rating firms, does not allow the use of State capital to establish credit rating firms.

The decree says that organisations and individuals are not allowed to use State capital for setting up credit rating companies.

According to the decree, credit rating firms must have a legal capital of VND15 billion (US$707,500), excluding the legal capital of other businesses that credit rating firms are allowed to operate.

The contribution of capital for the establishment of credit rating firms must be in line with the Law on Enterprises, the decree says, adding that organisations and individuals who own five per cent of a credit rating firm's charter capital are not allowed to contribute capital or hold shares of other credit rating firms.

In addition, credit rating firms are not allowed to give capital to other credit rating firms.

Regarding the operational fields of these firms, the decree says that credit rating firms are not allowed to operate in accounting, auditing, securities and banking sectors.

The decree aims to ensure the independence, objectiveness, honesty, transparency and compliance with established regulations of the credit rating firms.

The decree will come into effect on November 15. — VNS

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