What are conditions for having right to withdraw deposited assets of Offsetting members at the Vietnam Securities Depository Center?

What are conditions for having right to withdraw deposited assets of Offsetting members at the Vietnam Securities Depository Center?

Pursuant to Clause 1, Article 11 of the Regulation on offsetting and settlement of derivative securities transactions at the Vietnam Securities Depository issued with Decision 61/QD-VSD in 2022 stipulating conditions for offsetting members at the Vietnam Securities Depository Center to have the right to withdraw deposited assets as follows:

1. Offsetting members are entitled to withdraw deposited assets when meeting the following conditions:

a. The rate of use of margin assets after withdrawal is below the level 3 warning threshold specified in Clause 1, Article 13 of this Regulation;

b. The number of withdrawn securities must be less than or equal to the number of deposited securities on the member's depository account (in case of withdrawal of deposited assets in securities).

c. The account requesting withdrawal is not in a state of suspended trading due to violating the margin usage threshold, violating position limits or being insolvent.

What is deposit withdrawal at Vietnam Securities Depository?

According to Clause 2, Article 11 of the Regulation on offsetting and settlement of derivative securities transactions at the Vietnam Securities Depository issued with Decision 61/QD-VSD in 2022 regulating deposit withdrawals at the Vietnam Securities Depository is as follows:

2. Withdrawal of deposit

The Offsetting member sends VSD a request to withdraw margin, detailing the amount of margin to be withdrawn according to each investor's margin account from 08:00 to 16:00 working days. Pursuant to the provisions of Points a and c, Clause 1 of this Article, VSD shall check the deposit withdrawal request of Offsetting members. In case the deposit withdrawal request is invalid, VSD sends a telegram to notify the Offsetting member and clearly states the reason. In case of valid deposit withdrawal request:

a. VSD instructs Payment bank for derivatives transactions to transfer money to Offsetting members, and at the same time separately manage the deposit amount requested to withdraw so that it is not included in the value of valid deposited assets when determining the asset utilization rate. margin of that Offsetting member.

b. Based on VSD's instructions, Payment bank for derivatives transactions will transfer margin money from the member's margin deposit account to the margin withdrawal receiving account that the Offsetting member has registered and send a telegram to VSD.

c. Based on the debit message from Payment bank for derivatives transactions, VSD will write down the value of the money on the corresponding margin account and notify the relevant offsetting members.

What is withdrawal of deposited securities at the Vietnam Securities Depository? 

In Clause 3, Article 11 of the Regulation on offsetting and settlement of derivative securities transactions at the Vietnam Securities Depository issued with Decision 61/QD-VSD in 2022 regulating withdrawal of deposited securities in Vietnam Securities Depository Center as follows:

3. Withdraw deposited securities

The Offsetting member sends VSD a request to withdraw deposited securities, detailing the code and quantity of deposited securities to be withdrawn according to each investor's depository account from 08:00 to 16:00 working days. Pursuant to the provisions of Clause 1 of this Article, VSD shall check the Offsetting member's request to withdraw deposited securities. In case the request to withdraw deposited securities is invalid, VSD sends a telegram to notify the Offsetting member and clearly states the reason. In case of a valid request to withdraw deposited securities, VSD transfers securities from the member's depository account to the investor's depository account and notifies the relevant offsetting member.

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