What is withdrawal of securities at request of securities owners at Vietnam Securities Depository Center?

What is withdrawal of securities at request of securities owners at Vietnam Securities Depository Center?

Pursuant to Article 14 of the Securities Operations Regulations issued with Decision 114/QD-VSD in 2021, regulations on withdrawal of securities at request of securities owners at Vietnam Securities Depository Center are as follows:

1. Documents for securities withdrawal as prescribed in Clause 1, Article 21 of Circular 119/2020/TT-BTC sent to VSD include the following documents:

a. Request to withdraw securities from customers (Form 14/LK of this Regulation) in case an investor opening an account at a depository member requests to withdraw securities; Authorization document to withdraw securities (if any);

b. List of securities owners requesting to withdraw securities prepared by depository participants (Form 15A/LK or 15B/LK of these Regulations) (02 copies).

2. Within 01 working day from the date of receiving complete and valid documents from participating participants, VSD shall:

a. Confirm information about the owner withdrawing deposited securities in writing (Form 16/LK of this Regulation) sent to the issuer and at the same time send to the investor through the depository consultant where the account is opened and to the relevant depository participant himself;

b. Confirm withdrawal of deposited securities deposited with depository participants and simultaneously account for withdrawal of deposited securities on the depository account of the relevant depository member and record securities ownership information of the investor requesting withdrawal from depository in the List of owners owns undeposited securities. The effective date of withdrawal of deposited securities is confirmed by VSD on the List of securities owners requesting to withdraw securities sent by depository participants to VSD.

3. Linking participants are responsible for:

a. Transfer the Confirmation of information about the owner withdrawing deposited securities to the relevant investor within 01 working day from the date of receiving the document Confirming information about the owner withdrawing deposited securities from VSD, and at the same time. Support investors in receiving the Book/Certificate of securities ownership issued by the Insurer;

b. Perform accounting for withdrawal of deposited securities on the investor's account based on the effective date of VSD's withdrawal of securities.

4. The issuer is responsible for re-issuing the Book/Certificate of stock ownership to the securities owner in case the issuer has issued the Book/Certificate of securities ownership according to the information in the Confirmation of information of the owner withdrawing securities deposited by VSD.

What is additional registered securities deposit at the Vietnam Securities Depository Center?

According to Article 13 of the Securities Operations Regulations issued with Decision 114/QD-VSD in 2021, regulations on additional registered securities deposit at the Vietnam Securities Depository Center are as follows:

1. The deposit of additional registered securities is carried out after the issuer completes the additional registration of securities and adjusts the Certificate of securities registration at VSD according to the provisions of the Regulations on registration activities and Transfer ownership of VSD securities.

2. For additional registered securities arising from securities deposited at VSD:

a. In case of additional registration due to issuance of shares to increase equity capital from equity capital/dividends in shares/rights to buy additional shares/stock swap/conversion of bonds into shares, VSD transfer to depository member Confirmation of depository securities (Form 13/LK of these Regulations) on the day VSD receives depository of additional registered securities;

b. In case of depositing additional registered securities due to VSD subscription, enclose the Confirmation of deposit of deposited securities (Form 13/LK of these Regulations) and the detailed List of securities allocation according to depository participants;

c. The effective date for depositing securities is the date recorded on the Confirmation of depositing securities. Depository members based on the Confirmation of Depository Securities Deposit and the detailed List of Securities Allocation according to VSD's Depository Members, allocate securities to the account of the securities owner.

What are principles for depositing customer securities at the Vietnam Securities Depository Center? 

In Clause 2, Article 12 of the Securities Operations Regulations issued with Decision 114/QD-VSD in 2021, the deposit of securities by customers at the Vietnam Securities Depository Center is carried out as follows:

2. The deposit of customer securities at VSD (except for the case of securities deposit specified in Points 3.2 and 3.3, Clause 3 of this Article) is carried out according to the following principles:

a. Customers deposit securities into VSD through the depository member where they open their account;

b. Depository participants are responsible for carrying out procedures for receiving deposited securities from customers and re-depositing them into VSD within one working day from the date of receiving the customer's valid securities deposit documents.

Best regards!