What are regulations on securities trading payment documents in Vietnam?

What are regulations on securities trading payment documents in Vietnam?

Pursuant to Article 9 of the Regulations on Clearing and Settlement Activities for Securities Trading at the Vietnam Securities Depository Center issued together with Decision 109/QD-VSD in 2022, securities trading payment documents are regulated as follows:

1. The payment documents for money and securities applied in electronic form in this Regulation are specified in detail in Appendix 01 attached to this Regulation. In necessary cases, VSD or Members, Direct Account Opening Organizations may request to convert electronic documents to paper documents in accordance with the provisions of the law on electronic transactions in financial activities.

VSD electronic documents when converted to paper documents will be stamped with the following symbols:

VIETNAM SECURITIES DEPOSITORY AND CLEARING CORPORATION

DOCUMENTS CONVERTED FROM ELECTRONIC DOCUMENTS

Full name:

Signature:

Converted time:

2. In case the Member or Organization opening a direct account cannot send or receive payment documents in the form of electronic documents as prescribed in these Regulations because the connection has not been completed or the electronic communication port/online communication port is disconnected from the VSD, the process of sending and receiving information on this list will be done via the email address with the digital signature xacnhan-kqgd@vsd.vn of VSD and the email address that Members and Organizations opening direct accounts have registered with VSD.

What are regulations on securities trading payment settlement regulations in Vietnam?

Pursuant to Article 10 of the Regulations on Clearing and Settlement Activities for Securities Trading at the Vietnam Securities Depository Center issued together with Decision 109/QD-VSD in 2022, securities trading payment settlement regulations in Vietnam are regulated as follows:

1. After completing the settlement of securities transactions, VSD will send an electronic confirmation of the completion of securities transactions to Members via the electronic communication portal/online communication portal and to Direct Account Opening Organizations via email.

2. Members must allocate money and securities to customers immediately after VSD completes the settlement of securities and the paying bank completes the payment of money, and ensure that the allocation is completed before 1:00 PM on the settlement date for shares, mutual fund certificates, and guaranteed warrants, and before 3:00 PM on the settlement date for corporate bonds; and at the same time, notify VSD of the implementation results no later than 4:30 PM on the settlement date. Members send a notification of the results of the allocation to VSD in the form of an electronic document via the electronic communication portal.

What is the mechanism for supporting securities trading payment money in Vietnam?

Pursuant to Article 12 of the Regulations on Clearing and Settlement Activities for Securities Trading at the Vietnam Securities Depository Center issued together with Decision 109/QD-VSD in 2022, the mechanism for supporting securities trading payment money in Vietnam are regulated as follows:

1. Principles for determining whether a Member is temporarily unable to pay money:

a. The cutoff time for the balance of the money deposit account for securities trading settlement of the Member at the paying bank to determine the ability to pay is 10:00 AM on the settlement date for corporate bond transactions and for share, mutual fund certificate, and guaranteed warrant transactions.

b. After the time mentioned above, Members who do not have enough balance to fulfill the obligation to pay for the relevant securities transactions are considered to be temporarily unable to pay money and VSD will automatically take measures to address the shortage of money according to the mechanism and procedures for supporting money specified in Clause 2 of this Article.

2. Mechanism for supporting money for Members in case of temporary inability to pay money for securities transactions:

2.1. Using money borrowed from the Settlement Support Fund: The Member who is unable to pay is eligible to receive a maximum support of VND 25 billion/member in the following cases:

a. In case there is 01 Member who is unable to pay money for share, mutual fund certificate, guaranteed warrant, and corporate bond transactions with a total shortage of VND 25 billion or less;

b. In case there are 02 or more Members who simultaneously fail to pay money for share, mutual fund certificate, guaranteed warrant, and corporate bond transactions on the same settlement date with a total shortage of VND 30 billion or less.

2.2. Mechanism for using money borrowed from the paying bank:

a. In case there is 01 Member who is unable to pay money for share, mutual fund certificate, guaranteed warrant, and corporate bond transactions with a total shortage of more than VND 25 billion;

b. In case there are 02 or more Members who simultaneously fail to pay money for share, mutual fund certificate, guaranteed warrant, and corporate bond transactions on the same settlement date with a total shortage of more than VND 30 billion.

3. Securities transactions that are short of money for payment after applying the support mechanism as specified in Clause 2 of this Article and cannot be resolved will be delayed in settlement time according to the provisions of Article 17 of this Regulation.

Best regards!