Discount 5% for Government bonds, 30% to 40% for remaining securities in margin securities in Vietnam?
In the future, what will be the discount rate for margin securities in Vietnam in securities trading?
Pursuant to Article 8 Decision 61/QD-VSD in 2022 on the Regulation on clearing and settlement of derivatives transactions at the Vietnam Securities Depository Center stipulates the discount rate for margin securities in Vietnam as follows:
"Article 8. Discount rate of margin securities
1. The discount rate when determining the value of margin securities, except for securities at the ex-rights date, shall be applied as follows:
a. 5% for for Government bonds, government-guaranteed bonds
b. 30% for securities included in the list of securities constituting the VN30 and HNX30 index
c. 40% for the remaining securities
2. For the case of adjustment of the reference price at the ex-dividend date as prescribed by the Stock Exchange, after the end of the transaction on the working day immediately preceding the ex-dividend date, the discount rate for margin securities mentioned in Clause 1 of this Article shall be adjusted according to the formula specified in Appendix 4 issued with this Regulation. fund before the date of making the adjustment to ensure that the value of the escrow deposit is valid in accordance with regulations.
3. VSD may change the discount rate for margin securities mentioned in Clause 1 of this Article based on the liquidity and risk of each type of securities. In case of changing the discount rate of margin securities, VSD will send a written notice to the clearing member at least 01 working day before the effective date of application."
Regulations on the VN30 index in the discount rate What is the discount for margin securities in Vietnam?
Decision 714/QD-SGDHCM in 2020 on Rules for Building and Managing the HOSE-Index Version 3.0 issued by the Ho Chi Minh City Stock Exchange:
The VN30 Index is an index built from the ground up. The basket of component stocks of VNAllshare, including 30 companies with the top market capitalization and liquidity that meet the conditions for determining the VN30 basket as follows:
- The component stocks of the VNAllshare index will be considered for selection. based on the trading volume_KL. Stocks with trading volume_KL less than 100,000 shares will be removed from the consideration list.
- The remaining stocks after step 4.3.1.a will be considered and selected based on the trading volume:
+ Stocks that are a component of the VN30 index in the previous period with a trading value of less than VND 9 billion will be removed from the list. review.
+ Stocks that are not part of the VN30 index in the previous period with a trading value of less than VND 10 billion will be excluded from the consideration list.
+ In case the minimum number of stocks is not enough, 50 stocks are selected in order of decreasing value until the minimum number is reached. In case there are 2 or more stocks with equal value, the positions of these stocks are ranked in order of priority on value of value.
- The remaining stocks after step 4.3.1 .b will be sorted in descending order of value. In case there are 2 or more stocks with equal value, the positions of these stocks are ranked in order of priority in terms of trading value_KL.
- Stocks are selected into VN30 basket in order of priority as follows
+ Exclude stocks subject to warning within 3 months from the data closing date or from the data closing date to the official application date of the index basket. new number.
+ Stocks ranked 20th or more: always selected in the VN30 basket.
+ Stocks in positions 21 to 40: Prioritize stocks already in the list of constituent stocks of the VN30 basket last period, then consider new stocks so that the number of stocks in the basket is equal to 30 stocks. .
e. List of reserve stocks
+ 05 stocks with the largest value after determining the VN30 basket in step 4.3.1.d will be selected into the list of reserve stocks in descending order of value, used to replace them. in the event that one or more component stocks of VN30 are removed from the index basket during the period. (Refer to Section 8 - Adjustments during the period for component stocks of the index)
+ Stocks will be removed from the VN30 basket provision list if in the period fall under warning, control or special control during the period. , suspend the transaction.
How is the margin securities discount rate determined?
Pursuant to Appendix 4 attached Decision 61/QD-VSD in 2022 on the Regulation on clearing and settlement of derivatives transactions at the Vietnam Securities Depository, providing for the discount rate for margin securities in Vietnam at the ex-right date. is determined as follows:
In which,
H : discount rate applied at the ex
Ht-1: discount rate applied at the next trading day before the
Ptc: Reference price Projected at ex-dividend date
PC-1: Closing price on the trading day immediately preceding the ex-
dividend date Ptc is determined by the following formula:
In which:
I1: Ratio of capital increase according to the issue of rights. buy securities
I2: Rate of capital increase due to securities bonus
I3: Capital increase rate due to issue of dividends in securities
TTHck: Value of bonus in securities
Divck: Value of dividends in securities
TTHt: Value bonus in cash
Divt: Value of dividends/earnings in cash
Pr1: Price of securities sold to the holder of the right to buy securities
Pr2: Price of securities calculated for the person who is rewarded with securities
Pr3: The securities price calculated for the person who receives the dividend in securities.
Decision 61/QD-VSD in 2022 takes effect from June 1, 2022.
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