What is time limit for issuing a reminder letter from the Vietnam Securities Depository?

What is time limit for issuing a reminder letter from the Vietnam Securities Depository?

In Clause 2, Article 6 of the Regulation on members clearing derivatives at the Vietnam Securities Depository, issued together with Decision 84/QD-VSD in 2022, there is time limit for issuing a reminder letter from the Vietnam Securities Depository is as follows:

2. Time limit for issuing reminders

a) For violations specified at Points a, b, d, dd, e and g, Clause 1 of this Article, VSD shall issue a written reminder to the clearing member for violations within 01 working day from the date of issue. date of the violation.

b) For violations specified at Point c, Clause 1 of this Article, VSD will summarize monthly and issue a written reminder to members to clear the violation no later than the second working day of the following month.

In which cases where the Vietnam Securities Depository issued a decision to reprimand a clearing member?

In Clause 1, Article 7 of the Regulation on members clearing derivatives at the Vietnam Securities Depository, issued together with Decision 84/QD-VSD in 2022, there are regulations on cases where the Vietnam Securities Depository issued a decision to reprimand a clearing member as follows:

1. VSD issues a decision to reprimand a clearing member in the following cases:

a) Failing to contribute in full and/or on time to the Clearing Fund as required within 05 working days from the deadline for contribution as notified by VSD;

b) Failure to remedy the violation of the regulations on the ratio of using escrow assets before the deadline for deposit payment within the day as prescribed in the Regulation on clearing and settlement of derivative securities transactions of VSD with the amount from 03 or more violating accounts;

c) Within 01 month, there are 03 or more violations of position limit on investor's account;

d) Failure to complete the reduction of the number of futures contracts exceeding the position limit within 03 working days from the date of receiving the notice of violation from VSD, except for the case of exceeding the position limit due to redefining the position. how professional stock investors;

dd) Failing to supplement escrow assets or close positions to reduce the utilization rate of escrow assets within 01 working day from the date of receipt of VSD's notice of violation;

e) There are 02 or more times within 01 month, VSD has issued a written reminder as prescribed in Clause 1, Article 6 of this Regulation;

g) Insolvency with a shortfall amount exceeding the clearing member's own usable margin balance at the time of determining insolvency, but the support from the Clearing Fund does not exceed the clearing member's balance of contributions to the Clearing Fund;

h) Failing to transfer in full and on time according to the notice of VSD for the compensation as prescribed at point c, clause 4, Article 11 of Circular 58/2021/TT-BTC;

i) Failing to fully refund the payment support from the Clearing Fund, the Risk Prevention Fund and VSD's capital within 02 working days from the date of use;

k) There is not enough money to pay or not enough Government bonds to be delivered within the period prescribed by VSD, leading to the Government bond futures contract having to be converted to payment for contract performance in the form of cash;

l) Failing to fully pay service charges related to clearing and settlement of derivatives transactions within 20 days from the deadline for payment according to the notice of VSD;

m) Failing to provide complete, accurate and timely information requested by VSD as prescribed in Article 10 of this Regulation;

n) Changing registration information of clearing members without VSD's approval (in case it must be approved by VSD) and/or failing to notify VSD of the change (in case VSD's approval is not required) in a period of 10 days from the end of the time limit for sending a written notice as prescribed in Article 3 of this Regulation;

o) Failing to complete the allocation of position profits to investors (in case investors have profits) and/or proceeds from bond sales to investors transferring bonds when paying for the performance of bond futures contracts; Government vouchers on the day of payment.

What is time limit for issuing reprimand decision of Vietnam Securities Depository? 

In Clause 2, Article 7 of the Regulation on members clearing derivatives at the Vietnam Securities Depository, issued together with Decision 84/QD-VSD in 2022, there is time limit for issuing reprimand decision of Vietnam Securities Depository as follows:

2. Time limit for issuing reprimand decision

a) For violations specified at Points a, b, d, dd, g, h, i, k, l, m, n and o, Clause 1 of this Article, VSD issues a decision to reprimand the compensating member. except for violations within 01 working day from the date of arising violations.

b) For monthly aggregate violations specified at Points c and e, Clause 1 of this Article, VSD shall issue a decision to reprimand clearing members for violations no later than the second working day of the following month.

Best Regards!