What is management of securities depository accounts of depository members at Vietnam Securities Depository?

What is management of securities depository accounts of depository members at Vietnam Securities Depository?

Pursuant to Article 6 of the Regulation on Securities Activities issued together with Decision 114/QD-VSD in 2021, providing for management of securities depository accounts of depository members at Vietnam Securities Depository as follows: 

1. VSD manages the securities depository account of VSD at VSD according to the provisions of Article 16 of Circular 119/2020/TT-BTC .

2. Every month, VSD sends the Depository Account balance information of depository members (Form 01/LK of this Regulation) in the form of an electronic document to the depository account on the first working day of the following month. depository members is responsible for confirming the accuracy of data in accordance with regulations on reporting regime of depository members in the Regulation on depository members issued by VSD.

3. In case of necessity, the affiliates may request the conversion of electronic documents into paper documents in accordance with the law on electronic transactions in financial activities.

VSD's electronic documents when converted to paper documents are stamped with the following symbols:

What are principles of management of securities ownership information by investors at the Vietnam Securities Depository?

According to Article 7 of the Regulation on Securities Activities issued together with Decision 114/QD-VSD in 2021, principles of management of securities ownership information by investors at the Vietnam Securities Depository are as follows: 

1. VSD manages securities ownership information of investors based on:

a. Information about investors is recorded on VSD's system on the basis of information provided by depository members when opening a trading account, adjusting information for investors at the request of depository members and information of other organizations. Issuer (hereinafter referred to as TCH) provided in the securities registration dossier includes: full name, identification information of securities owner, type of investor, nationality, contact address, number securities trading account symbol;

b. Information about securities owned by investors is recorded by VSD on VSD's system based on the register of securities holders of the joint stock company managed by VSD and updated information on the basis of transactions. arising as payment for securities transactions, custody, transfer of securities and transfer of ownership of securities for transactions outside the securities trading system in accordance with current law.

2. Information to identify securities owners as prescribed at Point a, Clause 1 of this Article is the number and date of issuance of valid papers issued by a Vietnamese or foreign competent authority to the holder. securities are recorded by VSD to track, identify and manage information on securities owners on VSD's system.

a. For domestic individuals: ID card number/citizen identification number and date of issue;

b. For domestic organizations and business households: Number of establishment decision/Certificate of business registration/Certificate of business household registration or other equivalent document and date of issue;

c. For organizations that are VSD's affiliates: The number of VSD's affiliate certificates and the date of issue;

d. For foreign investors and foreign-invested economic organizations specified in Clause 1, Article 143 of Decree No. 155/2020/ND-CP dated December 31, 2020 of the Government detailing the implementation a number of articles of the Law on Securities (hereinafter referred to as Decree 155/2020/ND-CP), issuers of depository certificates in foreign countries: Securities trading code and date of issue;

D. For the agency representing the owner is the ministries, ministerial-level agencies, agencies attached to the Government; People's Committees of provinces and centrally run cities: Number of establishment decision/ decision on divestment/ decision to appoint a representative of state capital at the enterprise and date of signing the decision;

3. In case the investor is a Vietnamese individual with multiple nationalities, VSD monitors and manages the investor's identifying information on the following principles:

a. In case a Vietnamese residing abroad who has naturalized foreign nationality but still holds Vietnamese nationality may register as a domestic investor and use the valid passport number issued by a competent authority of Vietnam for identification information;

b. In case the investor does not choose Vietnamese nationality but chooses foreign nationality, the securities trading code shall be used as identification information;

c. In case an investor who previously registered for foreign nationality when opening an account at depository members wants to re-register as a domestic individual with Vietnamese nationality, adjust information at VSD according to the type of domestic investor. and must not use the securities trading code and the previously issued depository account (if any).

d. In case an investor who previously registered for Vietnamese nationality when opening an account at depository members wants to re-register as a foreign individual with foreign nationality, he/she shall register for a securities trading code to adjust information at VSD is according to the type of foreign investor and cannot use the previously issued depository account (if any).

4. Every month, VSD sends each customer information on securities ownership of each customer ( Form 02/LK of this Regulation) in the form of an electronic document to the broker on the first working day of the following month. In case of necessity, the affiliates may request VSD to convert electronic documents into paper documents according to the provisions of Clause 3, Article 6 of this Regulation.

5. depository members is responsible for comparing information on owning securities of itself and each customer at depository members with information on owning such securities at VSD to ensure a detailed balance on the securities depository account. at depository members must match the data of securities ownership at VSD as prescribed in Clauses 3, 4, Article 16 of Circular 119/2020/TT-BTC and confirm the accuracy of the data in accordance with regulations on reporting regime Report of depository members in the Regulation on depository members issued by VSD.

What is implementation of updating information on opening and closing securities trading accounts of investors at Vietnam Securities Depository? 

In Article 8 of the Regulation on Securities Activities issued together with Decision 114/QD-VSD in 2021, general provisions on updating information on opening and closing securities trading accounts of investors at Vietnam Securities Depository as follows:

1. Depository members is responsible for daily updating information on opening and closing securities trading accounts of investors made during the day at depository members for VSD in the form of electronic documents (Form 03A/LK and 03B/LK of the Regulations ).

2. The update of information of the investor specified in Clause 1 of this Article must be completed before the investor conducts deposit, withdrawal, transfer, securities buying/selling transactions, etc. In the course of business processing, if it is discovered that information about an investor is not available on VSD's system, VSD shall notify the supervisory authority and the consultant must complete the update of investor information on the day of receiving the notice from VSD (no later than 16:00 daily).

3. VSD confirms investor information updated by depository members on VSD's system at 8:30, 11:30 and 16:30 on working days. VSD's confirmation information is sent to depository members in the form of an electronic document.

4. In case an investor's securities trading account is closed to transfer securities to another affiliate, VSD will only confirm the account closing information on the system after completing the securities transfer, including additional securities (if any) due to exercise of rights before the time of account settlement.

Best Regards!