What are regulations on payment of debt instrument principal and interest at Vietnam Securities Depository (VSD)?

What are regulations on payment of debt instrument principal and interest at Vietnam Securities Depository (VSD)?

Pursuant to Article 7 of the regulations on performance of corporate actions for holders of securities at Vietnam Securities Depository issued together with the Decision 109/QĐ-VSD in 2021 stipulating payment of debt instrument principal and interest at Vietnam Securities Depository (VSD) as follows:

1. At least 06 business days before the record date, VSD shall send the Notice of record date (which is made using Form 01/THQ) to DMs, direct account holders, relevant Stock Exchanges (“SE”) and issuers, and publish it on its website.

2. Within 01 business day after the record date, VSD shall send the List of holders of deposited debt instruments receiving interest and principal payment (which is made using Form 02A/THQ) in the form of electronic document to the relevant DMs and direct account holders.

3. DMs and direct account holders shall check and compare information about securities holders on the List provided by VSD with their managed information and provide VSD with written confirmation (using Form 03/THQ) in the form of electronic document by 10:30 AM of the second business day after the record date.

If a DM or direct account holder disagrees with any information on the list of deposited securities holders, it must provide VSD with a document stating false information or discrepancies and cooperate with VSD in modifying information. Immediately after information has been modified, VSD shall provide the DM or direct account holder with the modified list of securities holders in the form of electronic document.

4. Within 02 business days after the record date, VSD shall provide the relevant issuer with the following documents:

a. The written request for payment of debt instrument interest and principal (using Form 04/THQ).

b. The list of securities holders receiving payment of debt instrument interest and principal (using Form 05A/THQ).

5. No later than 11:00 AM of the payment date, the relevant issuer must fully transfer money for paying debt instrument interest and principal to deposited securities holders to the deposit account notified by VSD. In case of late transfer of money, the issuer must send a written notice stating reasons for such late transfer to VSD by 15:00 PM of the payment date. Based on the issuer’s notice or in case VSD receives no notice from the issuer, VSD shall inform relevant DMs and direct account holders.

6. On the payment date, VSD shall transfer money to deposit accounts of relevant DMs and direct account holders (unless the issuer fails to fulfill its obligation as specified in Clause 5 of this Article). Within the same day when receiving money from VSD, the relevant DMs shall allocate money to holders of deposited debt instrument whose names appear on the List of securities holders receiving payment of debt instrument interest and principal.

7. In case of payment of debt instrument interest and principal at maturity, for those debt instruments deposited to serve open market operations at the State Bank of Vietnam (“SBV”), VSD shall pay debt instrument interest and principal to holders upon receipt of confirmation from the SBV’s Operations Center that the holder has fulfilled obligations with the SBV or at the request of the SBV’s Operations Center according to agreements between VSD and the SBV’s Operations Center.

What are regulations on swap and repurchase of debt instrument by negotiation at Vietnam Securities Depository (VSD)?

Pursuant to Clause 1 Article 8 of the regulations on performance of corporate actions for holders of securities at Vietnam Securities Depository issued together with the Decision 109/QĐ-VSD in 2021 stipulating swap and repurchase of debt instrument by negotiation at Vietnam Securities Depository (VSD) as follows:

1. Swap and repurchase of debt instrument by negotiation

a. At least 05 business days before the date of the debt instrument swap/repurchase, the issuer shall send a written notice to VSD of the information related to the debt instrument swap/repurchase. Such notice shall be made according to Clause 1 Article 14 of the Circular No. 110/2018/TT-BTC (in case of swap) and Clause 1 Article 7 of the Circular No. 110/2018/TT-BTC (in case of repurchase). Within 01 business day from the date of receipt of the issuer’s notice, VSD shall publish information about the issuer’s notice of debt instrument swap/repurchase on VSD’s website.

b. Blockade of debt instruments to be swapped/repurchased

- After the deadline for submission of application for debt instrument repurchase/swap, VSD shall blockade outstanding debt instruments to be swapped/repurchased on depository accounts of debt instrument holders at the request of the issuer.

- Within 01 business day from the receipt of the issuer’s request, VSD shall blockade debt instruments to be swapped/repurchased and send written confirmation of the blockade to the issuer (using Form 06A/THQ) and to relevant DMs where investors' debt instruments are deposited (using form 06B/THQ) so that DMs perform corresponding blockade of debt instruments.

c. In case of successful swap/repurchase

The issuer shall send a written notice of swap/repurchase results to VSD. Such notice shall be made according to the Circular No. 110/2018/TT-BTC.

d. In case of unsuccessful swap/repurchase

- The issuer shall send a written request to VSD for termination of blockade of debt instruments to be swapped/repurchased on depository accounts of debt instrument holders.

- Within 01 business day from the receipt of the issuer’s request, VSD shall release the debt instruments which have been blockaded to serve the swap/repurchase, and send written confirmation of such release to the issuer and relevant DMs where investors' debt instruments are deposited to perform corresponding release (using form 06C/THQ).

What are regulations on swap and repurchase of debt instruments through bidding at Vietnam Securities Depository (VSD)? 

Pursuant to Clause 2 Article 8 of the regulations on performance of corporate actions for holders of securities at Vietnam Securities Depository issued together with the Decision 109/QĐ-VSD in 2021 stipulating swap and repurchase of debt instrument by negotiation at Vietnam Securities Depository (VSD) as follows:

2. Swap/repurchase of debt instruments through bidding

a. Upon the completion of the bidding session for swap/repurchase, the SE shall send a notice of bidding results to VSD. Such notice shall be made according to the Circular No. 110/2018/TT-BTC.

b. Blockade of debt instruments to be swapped/repurchased

Within 01 business day from the receipt of the SE’s notice of bidding results, VSD shall blockade debt instruments to be swapped/repurchased and send written confirmation of the blockade to the issuer (using Form 06A/THQ) and to relevant DMs where investors' debt instruments are deposited (using form 06B/THQ) so that DMs perform corresponding blockade of debt instruments.

Best regards!