Officially establish Vietnam Securities Depository and Clearing Corporation from Vietnam Securities Depository?
Has there been a decision to establish Vietnam Securities Depository and Clearing Corporation?
On December 16, 2022, the Prime Minister of Vietnam issued Decision 26/2022/QD-TTg on the establishment, organization and operation of the Vietnam Securities Depository and Clearing Corporation.
According to that, in Article 1 of Decision 26/2022/QD-TTg on the establishment, organization and operation of Vietnam Securities Depository and Clearing Corporation as follows:
- Establishing Vietnam Securities Depository and Clearing Corporation on the basis of converting the Vietnam Securities Depository.
- Vietnam Securities Depository and Clearing Corporation is a State-owned enterprise organized and managed in the form of a single-member limited liability company in which 100% of charter capital is held by the State; has legal status, has its own seal; may open accounts in Vietnam dong and foreign currencies at the State Treasury and domestic commercial banks, foreign bank branches; independent accounting, implementing financial regimes, statistical reporting, accounting, auditing, information disclosure, and financial obligations as prescribed by law.
+ International transaction name: Viet Nam Securities Depository and Clearing Corporation.
+ Abbreviated name: VSDC.
+ Vietnam Securities Depository and Clearing Corporation has its head office in Hanoi and a branch in Ho Chi Minh City.
- Vietnam Securities Depository and Clearing Corporation inherits all rights and responsibilities of the Vietnam Securities Depository in accordance with the law; exercise the rights and perform the obligations as prescribed in the Law on Securities, the Law on Enterprises, the Law on the management and use of state capital invested in production and business at the enterprise and relevant provisions of law; carry out enterprise registration according to the provisions of the Law on Enterprises.
Officially establish Vietnam Securities Depository and Clearing Corporation from Vietnam Securities Depository?
What are the functions and duties of the Vietnam Securities Depository and Clearing Corporation?
The functions of the Vietnam Securities Depository and Clearing Corporation are specified in Clause 1, Article 2 of Decision 26/2022/QD-TTg, specifically as follows:
- Vietnam Securities Depository and Clearing Corporation has the function of organizing the registration, depository, clearing and settlement of securities;
- Supervising the activities of registration, depository, clearing and settlement of securities transactions on the stock market in accordance with the provisions of the securities law;
- Perform other functions and duties as prescribed by law and the Charter of organization and operation of Vietnam Securities Depository and Clearing Corporation.
The tasks of the Vietnam Securities Depository and Clearing Corporation are specified in Clause 2, Article 2 of Decision 26/2022/QD-TTg, specifically as follows:
The Vietnam Securities Depository and Clearing Corporation has the following main tasks:
- Developing and organizing the implementation of strategies, plans for investment and development, 5-year production and business plans and annual production and business plans after being approved by competent authorities according to regulations.
- Promulgating regulations on securities registration, depository, clearing and settlement, member regulations of Vietnam Securities Depository and Clearing Corporation and other professional regulations after being approved by the State Securities Committee; building operating procedures and risk management for each business.
- Providing securities registration, custody, clearing and settlement services; register security interest for securities that have been centrally registered at the Vietnam Securities Depository and Clearing Corporation at the request of customers; providing other services specified in the Charter of the Vietnam Securities Depository and Clearing Corporation; issue domestic securities codes and international securities identifiers for securities registered in the central bank.
Vietnam Securities Depository and Clearing Corporation; approve, change, cancel securities registration at the Vietnam Securities Depository and Clearing Corporation.
- Providing information related to the ownership of securities by the holder of securities in a public company, the issuer at the request of the public company, the issuing organization and the competent authority in accordance with the law.
- Approving and canceling the membership of Vietnam Securities Depository and Clearing Corporation; suspending securities depository activities of depository members, suspending clearing and settlement of securities transactions of clearing members; revoke the certificate of depository member and the certificate of clearing member.
- Supervising the activities of registration, depository, clearing and settlement of securities transactions; supervise foreign investors' ownership ratio in accordance with the law on securities and securities market; supervise the compliance with obligations of members of the Vietnam Securities Depository and Clearing Corporation.
- Ensuring material and technical foundations and databases for securities registration, depository, clearing and settlement activities. Take measures to protect the database and keep the original documents on registration, depository, clearing and settlement of securities in accordance with the law on accounting and statistics.
- Confidentiality of information related to customer ownership; refuse to blockade, hold, extract assets, extract or copy securities ownership information of customers without the consent of customers, except for cases at the request of competent authorities or request of providing information from auditors performing audits of financial statements of Vietnam Securities Depository and Clearing Corporation, and financial statements of depository members in accordance with law.
- Coordinating in propagating and disseminating knowledge about securities and the stock market to investors.
- Providing information and coordinating with the Vietnam Stock Exchange and its subsidiaries in securities operations and competent authorities in the investigation, prevention, against violations of the law on securities and securities market.
- Separately manage client's assets, client's assets with assets of Vietnam Securities Depository and Clearing Corporation; separately manage assets of payment support funds, clearing funds, and risk prevention funds in accordance with law; may use payment support sources in case a member of the Vietnam Securities Depository and Clearing Corporation is temporarily insolvent as prescribed by law.
- Acting for the benefit of securities depositors and securities owners; compensate customers for damage in case of failure to perform obligations, causing damage to the customers' legitimate rights and interests, except for force majeure cases.
- Receive, manage and effectively use, preserve and develop the State capital according to the financial mechanism for the Vietnam Securities Depository and Clearing Corporation.
- Report and propose to the State Securities Commission on measures to respond to and remedy incidents, events and fluctuations affecting the securities registration, depository, clearing and settlement activities of the Corporation. Vietnam Securities Depository and Clearing; violations by members of the Vietnam Securities Depository and Clearing Corporation.
- Other duties as prescribed by law and the Charter of Vietnam Securities Depository and Clearing Corporation.
How much is the charter capital of Vietnam Securities Depository and Clearing Corporation?
Pursuant to Article 3 of Decision 26/2022/QD-TTg, the charter capital of Vietnam Securities Depository and Clearing Corporation is VND 1,000 billion, which is determined by the equity of the Vietnam Securities Depository according to the financial statements at the time prior to the date on which the Vietnam Securities Depository and Clearing Corporation was granted the Certificate of Enterprise Registration.
- The adjustment of charter capital of Vietnam Securities Depository and Clearing Corporation shall comply with the provisions of law on management and use of state capital invested in production and business in enterprises.
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