In what form is Vietnam Securities Depository and Clearing Corporation organized?

In what form is Vietnam Securities Depository and Clearing Corporation organized?

According to Article 1 of Decision 26/2022/QD-TTg, there are regulations on establishment of Vietnam Securities Depository and Clearing Corporation on the basis of transformation of the Vietnam Securities Depository Center as follows:

1. 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, implementation of financial regulations, statistical reporting, accounting, auditing, information disclosure, and financial obligations as prescribed by law.

a) International transaction name: Viet Nam Securities Depository and Clearing Corporation.

b) Abbreviated name: VSDC.

c) The General Directorate of Vietnam Securities Depository and Clearing Company has its head office in Hanoi and a branch in Ho Chi Minh City.

2. The Vietnam Securities Depository and Clearing Corporation inherits all rights and responsibilities of the Vietnam Securities Depository Center 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.

According to this Article, 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;

In addition, the Vietnam Securities Depository and Clearing Corporation 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.

What are functions of Vietnam Securities Depository and Clearing Corporation?

According to Clause 1, Article 2 of Decision 26/2022/QD-TTg stipulating functions of Vietnam Securities Depository and Clearing Corporation as follows:

1. The General Directorate of Vietnam Securities Depository and Clearing Company has the function of organizing the registration, depository, clearing and settlement of securities; supervise the activities of registration, depository, clearing and settlement of securities transactions on the stock market in accordance with the provisions of the securities law; other functions and duties as prescribed by law and the Charter of organization and operation of Vietnam Securities Depository and Clearing Corporation.

2. Vietnam Securities Depository and Clearing Corporation has the following main tasks:

a) Formulate and organize 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.

b) To promulgate 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 Securities Trading Commission. approved by the State Securities Commission; building operating procedures and risk management for each business.

c) Providing securities registration, depository, 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 identification numbers for securities centrally registered at the Vietnam Securities Depository and Clearing Corporation; approve, change, cancel securities registration at the Vietnam Securities Depository and Clearing Corporation.

d) 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. authority in accordance with the law.

dd) 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.

e) 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.

g) Ensuring the physical, technical and database bases 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.

h) Confidentiality of information related to the customer's property; refuse to block, hold , extract assets, extract or copy information on securities ownership of customers without the consent of customers, except at the request of customers competent authority or request information from the auditor performing the audit of the financial statements of the Vietnam Securities Depository and Clearing Corporation, and the financial statements of the members in accordance with the law.

i) Coordinating in propagating and disseminating knowledge about securities and securities market to investors.

k) Provide information and coordinate with the Vietnam Stock Exchange and its subsidiaries in securities operations and competent authorities in investigation and prevention. and fight against violations of the law on securities and the securities market.

l ) Separately manage the client's assets, the client's assets from the assets of the 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.

m) Acting for the benefit of securities depositors and owners; Indemnify customers for damage in case of failure to perform their obligations, causing damage to the legitimate rights and interests of customers, except for force majeure cases.

n) Receive, manage and effectively use, preserve and develop State capital according to the financial mechanism for Vietnam Securities Depository and Clearing Corporation.

o) Report and recommend 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 Vietnam Securities Depository and Clearing Corporation; violations by members of the Vietnam Securities Depository and Clearing Corporation.

p) Other duties as prescribed by law and the Charter of Vietnam Securities Depository and Clearing Corporation.

Thus, the Vietnam Securities Depository and Clearing Corporation has function of organizing the registration, depository, clearing and settlement of securities; supervise the activities of registration, depository, clearing and settlement of securities transactions on the stock market in accordance with the provisions of the securities law; other functions as prescribed by law and the Charter on organization and operation of Vietnam Securities Depository and Clearing Corporation.

What is organizational management structure of Vietnam Securities Depository and Clearing Corporation?

Pursuant to Article 4 of Decision 26/2022/QD-TTg stipulating organizational management structure of Vietnam Securities Depository and Clearing Corporation as follows:

1. The organizational and management structure of Vietnam Securities Depository and Clearing Corporation includes: Board of members, General Director, Supervisory Board and professional departments and divisions.

2. The Chairman of the Board of members, the General Director of the Vietnam Securities Depository and Clearing Corporation shall be appointed or dismissed by the Minister of Finance at the proposal of the Board of members.

According to this Article, the organizational and management structure of Vietnam Securities Depository and Clearing Corporation includes: Board of members, General Director, Supervisory Board and professional departments and divisions.

Best Regards!