Cases where the Vietnam Securities Depository and Clearing deregisters securities

According to Article 7 of the Circular No. 119/2020/TT-BTC of the Ministry of Finance of Vietnam, the Vietnam Securities Depository and Clearing (VSDC) shall deregister securities in the following cases:

(1) Government debt instruments, government-guaranteed bonds, local government bonds, corporate bonds, covered warrants come due;

(2) Government debt instruments, government-guaranteed bonds, local government bonds, corporate bonds, covered warrants are redeemed by the issuers before they come due;

(3) The issuer reduces its capital, dissolves, goes bankrupt or ceases to exist due to the restructuring of the enterprise;

(4) The issuer swaps shares, government debt instruments, government-guaranteed bonds, local government bonds, corporate bonds;

(5) Shares of an equitized enterprise that is not a public company are delisted or deregistered for trading and the enterprise requests to deregister securities;

(6) Investment fund certificates, covered warrants are delisted;

(7) The exchange-traded fund (ETF) is dissolved;

(8) Securities of a public company that has registered with VSDC but no longer satisfy the requirements for a public company and the company requests securities deregistration;

(9) Issuers, public companies registering securities under the agreement with VSDC voluntarily apply for securities deregistration;

(10) Deregister the number of government debt instruments, government-guaranteed bonds, local government bonds that market makers or investors fail to pay for purchases; deregister the Government's debt instruments due to the maturity of the liquidity guarantee contract between the State Treasury and market makers and investors.

Note: Securities deregistration shall comply with regulations on securities registration.

More details at the Circular No. 119/2020/TT-BTC of the Ministry of Finance of Vietnam, effective from February 15, 2021.

Ty Na

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