What is securities transfer in case of changing the investor's account number due to negligence when opening an account at the Vietnam Securities Depository Center?

What is securities transfer in case of changing the investor's account number due to negligence when opening an account at the Vietnam Securities Depository Center?

Pursuant to Clause 4, Article 23 of the Securities Operations Regulations issued with Decision 114/QD-VSD in 2021 regulating securities transfer in case of changing the investor's account number due to negligence when opening an account at the Vietnam Securities Depository Center are as follows:

4. Securities transfer in case the investor's account number is changed due to negligence when opening an account for the investor; due to the investor changing foreign ownership ratio or changing nationality leading to a change from domestic investor to foreign investor and vice versa; due to change in foreign ownership ratio, it is no longer an economic organization with foreign investment capital as prescribed in Clause 1, Article 143 of Decree No. 155/2020/ND-CP and vice versa; due to the fund management company transferring the investment trust portfolio of the domestic entrusting customer to another depository member. Records include:

a. Request letter/official dispatch from the investor (in the account owner's name) clearly stating the reason for the transfer request, list of securities and arising rights (if any), request for transfer, commitment to take responsibility related to fund transfer (not applicable in case of negligence when opening an account for investors);

b. Official dispatch of the depository participant on the transfer of securities to the investor. In case of negligence when opening an account for the investor, the depository participant must commit to take responsibility related to the transfer;

c. Request for securities transfer (Form 21/LK of this Regulation) prepared by depository participant of the transferring party (02 copies in case of transfer with the same depository participant, 03 copies in case of transfer with different depository participants);

d. Copy of document proving the investor's account opening (in case of negligence when opening an investor's account);

D. Written request/approval of the customer to entrust the fund management company to transfer the customer's investment trust portfolio to another depository member (in case the fund management company transfers the investment trust portfolio);

e. Relevant documents to explain and clarify information in the dossier (if necessary);

In case of securities transfer due to change from domestic investor to foreign investor, from economic organization to economic organization with foreign investment capital as prescribed in Clause 1, Article 143 of Decree No. 155/ 2020/ND-CP leads to exceeding the maximum foreign ownership ratio as prescribed by law, VSD notifies the depository participants to request investors and economic organizations to sell the amount of securities in excess of ownership before make the transfer.

What are order and procedures for transferring securities due to adjusting information about securities types at the Vietnam Securities Depository Center?

According to Clause 5, Article 23 of the Securities Operations Regulations issued with Decision 114/QD-VSD in 2021 regulating the order and procedures for transferring securities due to adjusting information about securities types at the Vietnam Securities Depository Center the following:

5. The order and procedures for transferring securities due to adjusting information about the type of securities, adjusting errors in the number of securities owned, adjusting information due to changing the representative of the owner of State capital are carried out in accordance with the provisions of VSD's Regulations on securities registration and ownership transfer.

What are other transfer cases after being approved by the State Securities Commission at the Vietnam Securities Depository Center?

Clause 6, Article 23 of the Securities Operations Regulations issued with Decision 114/QD-VSD in 2021 regulates other cases of transfer after being approved by the State Securities Commission at the Vietnam Securities Depository Center as follows:

6. Other cases of transfer after approval by the State Securities Commission. Profile include:

a. Approval letter from the State Securities Commission;

b. Request for securities transfer (Form 21/LK of this Regulation) is prepared by the depository participant of the transferring party (02 copies in case of transfer with the same depository participant, 03 copies in case of transfer with different depository participants).

Best regards!