08 cases of depositary securities transfer outside the securities trading system in Vietnam

According to Clause 2 Article 22 of the Circular No. 119/2020/TT-BTC of the Ministry of Finance of Vietnam, the Vietnam Securities Depository and Clearing (VSDC) makes a depositary securities transfer outside the securities trading system and not associated with the transfer of securities ownership in the following cases:

- The client transfers securities from the client's securities depository account at one depository member (DM) to the client's own securities depository account or clearing margin account at another DM;

- Transferring valuable papers between securities depository accounts of the same investor serving transactions on the money market;

- Transferring securities to carry out hedging activities for covered warrants of the securities company that issues the covered warrants; transferring securities to carry out market-making activities by the market maker;

- Transferring securities due to transfer of investment portfolio between securities depository accounts of the same investor at the request of such investor;

- Transferring securities due to change in information on types of securities, correction of errors in the number of securities owned, change in the representative of state capital ownership; securities transfers due to a change in foreign ownership ratio or a change of nationality resulting in a change from a domestic investor to a foreign investor and vice versa;

- Transferring securities when the DM where the client is opening an account has the certificate of registration of securities depository, the securities brokerage practice or the certificate of DM revoked by the State Securities Commission (SSC); transferring securities when the clearing member has the certificate of eligibility to provide clearing and settlement services for securities transactions revoked by SSC;

- When the direct account holder terminates the service contract with VSDC.

- The direct account holder transfers securities from its own securities depository account at VSDC to the securities depository account or clearing margin account of the direct account holder at the DM and vice versa.

On the other hand, the securities transfer at VSDC shall comply with VSDC's regulations on securities depository.

The Circular No. 119/2020/TT-BTC of the Ministry of Finance of Vietnam takes effect from February 15, 2021.

Ty Na

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