How long can the Vietnam Securities Depository and Clearing Corporation suspend depository members?
- What is the time limit for issuance of the certificate of securities depository registration in Vietnam?
- How long can the Vietnam Securities Depository and Clearing Corporation suspend depository members?
- What to do when the certificate holder fails to rectify the violations by the end of the suspension period?
What is the time limit for issuance of the certificate of securities depository registration in Vietnam?
Pursuant to Article 59 of the 2019 Law on Securities in Vietnam on the time limit for issuance of the certificate of securities depository registration as follows:
Time limit for issuance of the certificate of securities depository registration in Vietnam
1. Within 15 days from the receipt of the satisfactory application, State Securities Commission shall decide whether to issue the certificate of securities depository registration, or reject the application and provide explanation in writing.
2. Within 12 months from the issuance date of the certificate, the certificate holder shall complete the procedures for depository member registration at Vietnam Securities Depository and Clearing Corporation and initiate the securities depository operation.
Thus, from the date of receipt of the satisfactory application for securities depository registration, within 15 days the State Securities Commission shall issue a Certificate of securities depository registration.
At the same time, within 12 months from the issuance date of the certificate, the certificate holder shall complete the procedures for depository member registration at Vietnam Securities Depository and Clearing Corporation and initiate the securities depository operation.
How long can the Vietnam Securities Depository and Clearing Corporation suspend depository members?
How long can the Vietnam Securities Depository and Clearing Corporation suspend depository members?
Pursuant to Clause 1, Article 60 of the 2019 Law on Securities in Vietnam provides for this content as follows:
Suspension of securities depository operation, revocation of the certificate of securities depository registration
1. Vietnam Securities Depository and Clearing Corporation will suspend a depository member for up to 90 days if such member:
a) Regularly fails to fulfill its obligations specified in this Law and Vietnam Securities Depository and Clearing Corporation’s charter; or
b) Causes heavy damage to its clients.
Thus, Vietnam Securities Depository and Clearing Corporation will suspend a depository member for up to 90 days if such member:
- Regularly fails to fulfill its obligations specified in this Law and Vietnam Securities Depository and Clearing Corporation’s charter; or
- Causes heavy damage to its clients.
What to do when the certificate holder fails to rectify the violations by the end of the suspension period?
According to the provisions of Clause 2, Article 60 of the 2019 Law on Securities in Vietnam as follows:
Suspension of securities depository operation, revocation of the certificate of securities depository registration
…
2. State Securities Commission will revoke the certificate of securities depository registration from a securities company, commercial bank or foreign branch banks if:
a) The certificate holder fails to rectify the violations mentioned in Clause 1 of this Article by the end of the suspension period;
b) The securities depository operation is not initiated within 12 months from the issuance date of the certificate;
b) The certificate holder has its license for establishment and operation revoked;
d) The certificate holder no longer exists or is converted as prescribed by the Law on Enterprises;
dd) The certificate holder wishes to terminate its securities depository operation and the termination is accepted by State Securities Commission;
e) The requirements for registration of securities depository operation specified in Article 57 of this Law are not fully satisfied.
3. After the certificate of securities depository registration is revoked, the depository member shall finalize its securities depository account in accordance with regulations of Vietnam Securities Depository and Clearing Corporation.
Thus, if the certificate holder fails to rectify the violations by the end of the suspension period, State Securities Commission will revoke the certificate of securities depository registration from depository members.
In addition, when a securities company, commercial bank or foreign branch banks falls into one of the following cases, the certificate of registration of securities depository registration will be revoked:
- The certificate holder fails to rectify the violations mentioned in Clause 1 of this Article by the end of the suspension period;
- The securities depository operation is not initiated within 12 months from the issuance date of the certificate;
- The certificate holder has its license for establishment and operation revoked;
- The certificate holder no longer exists or is converted as prescribed by the Law on Enterprises;
- The certificate holder wishes to terminate its securities depository operation and the termination is accepted by State Securities Commission;
- The requirements for registration of securities depository operation specified in Article 57 of this Law are not fully satisfied.
At the same time, after the certificate of securities depository registration is revoked, the depository member shall finalize its securities depository account in accordance with regulations of Vietnam Securities Depository and Clearing Corporation.
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