Cases that the Vietnam Securities Depository and Clearing freezes and releases securities

According to Article 23 of the Circular No. 119/2020/TT-BTC of the Ministry of Finance of Vietnam, the Vietnam Securities Depository and Clearing (VSDC) shall freeze and release securities in the following cases:

- Freezing and releasing securities at the request of competent regulatory agencies;

- Freezing and releasing securities at the request of investors;

- Freezing and releasing securities of investors to be used to secure the performance of obligations in security transactions.

Notes:

- For the case of freezing and releasing securities at the request of competent regulatory agencies, VSDC shall only freeze and release securities after receiving a written request from a competent regulatory agency in accordance with law. After freezing and releasing securities on securities depository accounts, VSDC is responsible for notifying DMs and direct account holders to freeze and release corresponding securities and notify the related clients of DMs.

- For the case of freezing and releasing securities at the request of investors, VSDC shall freeze and release the investor' securities at the investor's request and send it to VSDC through a DM where the investor has the depository securities frozen and released. Frozen securities are freely transferable securities that are not frozen, held, or deposited. VSDC is responsible for processing the application for freezing or release of securities within 01 working day from the date of receipt of valid application. The freezing and release of securities at the request of investors shall comply with VSDC's regulations on securities depository.

- For the case of freezing and releasing securities of investors to be used to secure the performance of obligations in security transactions, VSDC shall comply with regulations on registration of security interests for securities that have been centrally registered with VSDC.

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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