What is adjustment of information about investors at Vietnam Securities Depository Center?

What is adjustment of information about investors at Vietnam Securities Depository Center?

Pursuant to Article 9 of the Regulation on Securities Activities issued together with Decision 114/QD-VSD in 2021, regulating the adjustment of information about investors at the Vietnam Securities Depository Center as follows:

1. In the process of updating account opening and closing information and processing transactions on the system at VSD, if it is discovered that an investor has the same identification information of the owner but other relevant information as their name, nationality and type of investor are incorrect, the following actions shall be taken:

a. VSD sends a Notice on the inspection of information of investors ( Form 04/LK of this Regulation) to VSD;

b. The VSD must send the VSD to confirm the accuracy of the investor's information together with documents proving that it is a copy of the document or a scanned print of the barcode (QR code) showing the identification information of the investor specified in Clause 1 of this Article. Clauses 2 and 3, Article 7 of this Regulation.

2. In case the affiliate detects that there is a discrepancy between the information about the investor managed at the affiliate with the information on the VSD's system, or the investor changes the registered information, the affiliate shall send a dossier of request for adjustment. Adjust investor's information for VSD. Records include:

a. The official letter requesting adjustment of information of the investor made by the General Counsel ( Form 05/LK of this Regulation: 02 copies);

b. Copies of papers or barcodes (QR codes) showing the investor's identification information as prescribed in Clauses 2 and 3, Article 7 of this Regulation (not applicable to the case of address adjustment). 

3. Within 01 working day from the date of receipt of the complete and valid dossier, VSD will correct the investor's information (if there is any deviation) and send a written notice of the adjustment contents to VSD.

4. In the case of foreign investors and foreign-invested economic organizations specified in Clause 1, Article 143 of Decree No. 155/2020/ND-CP, the overseas depository certificate issuer has change information, the VSD prepares a dossier according to VSD's Regulation on registration of securities trading codes of foreign investors.

What are general regulations on opening accounts for organizations opening accounts directly at Vietnam Securities Depository Center?

According to Article 10 of the Regulation on Securities Activities issued together with Decision 114/QD-VSD in 2021, general regulations on opening accounts for organizations opening accounts directly at Vietnam Securities Depository Center are as follows:

1. Organizations that open accounts directly at VSD include organizations specified in Clause 1, Article 165 of Decree No. 155/2020/ND-CP .

2. VSD provides services related to depository, clearing and settlement of securities transactions, exercise of rights, and transfer of securities ownership to VSD on the basis of a contract signed between the two parties ( Form 34/LK of this Regulation). For the State Treasury, the State Capital Investment and Trading Corporation, the Foreign Depository Center, VSD provides services on the basis of a written agreement between the two parties.

What are regulations on securities deposited at VSD in Vietnam?

In Article 11 of the Regulation on Securities Activities issued together with Decision 114/QD-VSD in 2021, the general provisions on securities deposited at VSD are as follows:

1. Securities deposited at VSD are securities that have been registered by the issuer at VSD.

2. Securities deposited at VSD are classified into freely transferable securities and conditional transferable securities (restricted transfer). The management of securities is carried out as follows:

2.1. For securities registered at VSD and traded on the Stock Exchange according to the announcement of the Stock Exchange:

a. Freely transferable securities shall be recorded into the trading securities account and securities depository customers may conduct transactions for these securities in accordance with the provisions of law;

b. Conditionally transferable securities are recorded in the temporarily suspended securities account and securities depository customers can only trade these securities when VSD adjusts the transfer conditions of the underlying securities based on the written request of the issuer together with relevant documents for proof.

2.2. For securities registered at VSD but not yet trading date as notified by the Stock Exchange:

a. Freely transferable securities are recorded into securities accounts awaiting trading and securities depository customers can only trade these securities from the date the securities complete the procedures to be traded on the Stock Exchange;

b. Conditionally transferable securities are recorded to the securities account temporarily suspended pending trading. Securities depository customers are only allowed to trade for this type of securities when VSD adjusts the transfer conditions of the securities based on the written request of the TCH and the securities complete the procedures to be traded on the Stock Exchange.

2.3. For securities registered at VSD but not yet listed/registered for trading on the Stock Exchange:

a. Are freely transferable securities recorded into the trading securities account of public companies that are not listed/registered for trading on the Stock Exchange;

b. Conditionally transferable securities are recorded into the securities account temporarily suspended from trading of the public company, which is not listed/registered for trading on the Stock Exchange.

2.4. VSD shall base on VSD's confirmation of depositing securities for depository in the List of securities owners requesting securities depository to manage conditional transferable securities on the account temporarily suspended from trading or pending for trading of customers at VSD until there is a notice from VSD to adjust the transfer conditions of securities.

2.5. On the first trading day of securities according to the announcement of the Stock Exchange and VSD, VSD shall base on the Confirmation of depositing securities pending for trading and the list of securities owners or the list of securities allocation details according to VSD in case of allocation of additional registered securities made by VSD to account for securities from the account pending/suspended from trading to the trading/suspended account.

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