Adjustment of Information for Investors at the Vietnam Securities Depository: What are the Steps?
How is the update of securities trading account information for investors carried out?
The update of opening and closing securities trading account information for investors is stipulated in Article 8, the Securities Operation Regulations issued with Decision 114/QD-VSD 2021 as follows:
- Depository Members (TVLK) are responsible for daily updating the opening and closing of securities trading accounts carried out during the day at TVLK to VSD in the form of electronic documentation (Form 03A/LK and 03B/LK of the Securities Operation Regulations issued with Decision 114/QD-VSD 2021)
- The update of investor information stipulated in Clause 1 of this Article must be completed before the investor performs transactions such as depositing, withdrawing, transferring, buying/selling securities, etc. During business processing, if it is found that the investor's information is not available on VSD's system, VSD will notify TVLK, and TVLK must complete the update of investor information on the same day it receives the notification from VSD (no later than 4:00 PM daily).
- VSD confirms the information about the investor updated by TVLK on VSD's system at 8:30 AM, 11:30 AM, and 4:30 PM on working days. VSD's confirmation information is sent to TVLK in the form of electronic documentation.
- In case of closing the investor's securities trading account to transfer securities to another TVLK, VSD will only confirm the account closure information on the system after completing the securities transfer, including any additional securities arising (if any) due to the exercise of rights before the account settlement.
What steps are included in the adjustment of information for investors at the Vietnam Securities Depository?
According to Article 9 of the Securities Operation Regulations issued with Decision 114/QD-VSD 2021 regarding the adjustment of information about investors at the Vietnam Securities Depository:
- During the process of updating the information on account closures and business processing on the VSD system, if it is found that there are discrepancies in the identifying information of the investor but other related information such as name, nationality, type of investor differs, the handling will be as follows:
+ VSD sends a Notification regarding the verification of investor information (Form 04/LK of the Securities Operation Regulations issued with Decision 114/QD-VSD 2021) to TVLK;
+ TVLK must send VSD a confirmation of the accuracy of the investor's information accompanied by documents such as copies or scanned barcode (QR code) prints displaying the identifying information of the investor as stipulated in Clause 2, Clause 3, Article 7 of the Securities Operation Regulations issued with Decision 114/QD-VSD 2021).
- If TVLK finds discrepancies between the investor information managed at TVLK and the information on VSD's system, or the investor changes registered information, TVLK sends a dossier requesting the adjustment of the investor's information to VSD. The dossier includes:
+ Official Dispatch requesting adjustment of the investor's information prepared by TVLK (Form 05/LK of the Securities Operation Regulations issued with Decision 114/QD-VSD 2021) (02 copies);
+ Copies or scanned barcode (QR code) prints displaying the identifying information of the investor as stipulated in Clause 2, Clause 3, Article 7 of the Securities Operation Regulations issued with Decision 114/QD-VSD 2021 (not applicable for address adjustments).
+ Within 01 working day from the date of receiving the complete and valid dossier, VSD adjusts the investor's information (if there are discrepancies) and sends a written notification of the adjustments to TVLK.
+ In case of foreign investors, economic organizations with foreign capital as stipulated in Clause 1, Article 143 of Decree 155/2020/ND-CP, or issuers of depository receipts abroad having changes in information, TVLK prepares the dossier according to the regulations on registration of securities trading codes for foreign investors of VSD.
On what principle does VSD manage information for Vietnamese individual investors with multiple nationalities?
Clause 3, Article 7 of the Securities Operation Regulations issued with Decision 114/QD-VSD 2021 stipulates the principles for managing information for Vietnamese individual investors with multiple nationalities as follows:
- In the case of overseas Vietnamese who have obtained foreign nationality but still hold Vietnamese nationality, they will be registered as domestic investors, using a valid passport issued by the competent Vietnamese authority as identifying information.
- If the investor chooses foreign nationality instead of Vietnamese nationality, they must use the securities trading code as identifying information.
- In case the investor previously registered foreign nationality when opening an account at TVLK and wants to re-register as a domestic individual with Vietnamese nationality, the information adjustment will be carried out at VSD according to the type of domestic investor, and they cannot use the previously issued securities trading code along with the deposited account (if any).
- If the investor previously registered Vietnamese nationality when opening an account at TVLK and wants to re-register as a foreign individual with foreign nationality, they must register a securities trading code to adjust the information at VSD according to the type of foreign investor and cannot use the previously issued deposited account (if any).
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