Each depository member may only open one securities depository account at the Vietnam Securities Depository and Clearing

According to the Circular No. 119/2020/TT-BTC of the Ministry of Finance of Vietnam, a depository member (DM) must open a securities depository account at the Vietnam Securities Depository and Clearing (VSDC) in order to conduct transactions with its securities. Each DM may only open one securities depository account at VSDC and may not open a securities depository account at another DM. However, a DM may open a securities depository account in the following cases: 

- A DM opens a securities depository account at a fund founder to perform transactions related to the exchange-traded fund;

- A DM being a securities company that has terminated its membership at the Vietnam Stock Exchange is allowed to open a securities depository account at other DMs to deal with the remaining securities on a proprietary trading account;

- A DM who is not a clearing member (CM) opens a securities depository account at a CM to serve the purpose of managing cleared margin assets and making payment for securities transactions for the DM;

- A DM being a securities company that issues covered warrants opens an additional securities depository account at VSDC to reduce future exposure for the covered warrants;

- A DM being a market maker opens an additional securities depository account at VSDC to carry out market-making activities.

Besides, direct account holders are allowed to open securities depository accounts at VSDC.

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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