What is a securities transfer that is a valuable document at the Vietnam Securities Depository?

What is a securities transfer that is a valuable document at the Vietnam Securities Depository?

Pursuant to Article 21 of the Securities Operations Regulations issued with Decision 114/QD-VSD in 2021 regulating the transfer of securities as valuable papers at the Vietnam Securities Depository as follows:

1. VSD transfers securities from the customer's account, the depository participant's own account opened at the depository member/the organization that opens an account directly at VSD to the customer's account/the depository participant/the organization that opens an account directly's account opened at the State Bank and vice versa to serve valuable paper transactions in the currency market.

2. In case of transferring securities from depository participants/ organization that opens an account directly to the State Bank, the depository participant/ organization that opens an account directly on the transferring party submits documents to VSD, including:

a. Request for securities transfer (Form 25/LK of this Regulation) (03 copies);

b. Written request for securities transfer from investors (in case of transfer to customers of depository participants).

3. In case of transferring securities from the State Bank to the Depository Member/organization that opens an account directly, the State Bank sends VSD a Securities Transfer Request (Form 25/LK of this Regulation) (02 copies).

4. The transfer of securities as valuable papers between VSD and the State Bank's Exchange is carried out in the form of electronic documents. The validity of transferring securities as valuable papers is determined on the date VSD and the State Bank Exchange confirm the transaction on the system.

5. VSD's processing time for securities transfer documents is 01 working day from the date of receipt of complete and valid documents; Original transfer documents are transferred by VSD to the State Bank within 01 working day after the effective date of transfer.

What is transfer and revocation of the Certificate of depository member for final settlement as designated at the Vietnam Securities Depository?

According to Point 4.1, Clause 4, Article 22 of the Securities Operations Regulations issued with Decision 114/QD-VSD in 2021, regulating the transfer and revocation of the Certificate of depository member for final settlement as designated at the Vietnam Securities Depository are as follows:

4.1. At the end of the transfer period to finalize the account according to the customer's request specified in Clauses 1 and 2 of this Article, VSD will close the balance of securities owned by customers who have not yet finalized their accounts and of the depository participants themselves. (if any) and send it to the registered participant whose Certificate of registered participant is revoked for checking and comparison. The information VSD sends to depository member includes:

a. Information about the balance of securities owned by each customer opening an account at the revoked depository member (detailed by account);

b. Securities balance information on the customer's general account (detailed by stock code);

c. Securities balance information on the account owned by that participating participant according to each stock code (if any);

d. Information on rights related to arising shares has been determined by type of rights.

What does transfer file for revocation of the Certificate of depository member for final settlement as designated at the Vietnam Securities Depository include? 

At Point 4.3, Clause 4, Article 22 of the Securities Operations Regulations issued with Decision 114/QD-VSD in 2021 stipulates the transfer file to withdraw the Certificate of depository member for final settlement as designated at the Vietnam Securities Depository as follows:

4.3. Based on the confirmation of the revoked depository participant in Clause 4.2 of this Article, VSD transfers the securities of the remaining customers of the revoked depository participant to that customer's own account opened at another depository participant according to the written agreement, the account transfer contract between the depository member whose Certificate of depository member has been revoked and that depository member. The designated settlement transfer is only carried out for accounts with no disputes regarding assets and civil obligations between the customer and the revoked depository participant according to the revoked depository participant's commitment. The revoked depository member is obliged to notify the customer of the appointment of the depository participant to make the above-mentioned transfer.

Documents for final settlement transfer as specified include:

a. Request for securities transfer of depository participants whose Certificate of depository participants has been revoked (Form 26/LK of this Regulation) (03 copies);

b. A valid copy of the written agreement on the transfer of designated funds between the organization whose Certificate of Depository Member is revoked and the appointed Member or the written approval of the depository member of the State Securities Commission;

c. Documents disclosing information to customers about transferring designated funds to other participating members.

Best regards!