Oversight of Operational Activities for the Vietnam Securities Depository Center

1. Approval and revocation of the Certificate of Depository Member, Clearing Member; monitoring the maintenance of conditions for registration of depository members, clearing members; monitoring the exercise of rights of VSD towards depository members, clearing members; monitoring activities of VSD towards depository members, clearing members regarding compliance with securities laws and regulations of VSD; handling violations by depository members, clearing members in accordance with securities laws and regulations of VSD.

2. Registration and cancellation of securities; issuance and management of securities codes; exercising the rights of securities holders; transferring ownership of securities without going through the trading system.

3. Opening and management of securities depository accounts; depositing, withdrawing, pledging, and releasing securities.

4. Issuance and management of transaction codes for foreign investors.

5. Execution of reporting obligations and information disclosure by VSD as regulated by law; monitoring activities of VSD towards depository members, clearing members regarding reporting obligations.

6. Execution of securities clearing and settlement activities; correcting errors, handling errors, deferring payment deadlines, removing settlements; establishing, managing, and using the Settlement Support Fund; establishing, managing, and using clearing funds.

7. Establishing systems to ensure the separation of accounts and assets of clearing members from those of VSD; separating accounts and assets of each clearing member; separating margin accounts and assets of clearing members from those of their clients.

8. Managing the securities lending and borrowing (SBL) system, managing the exchange-traded fund (ETF) swap transaction system, managing the clearing rights trading system.

9. Securely storing records, documents, and original data related to the execution of operations.

10. Internal control and risk management activities for each operation.

11. Compensation activities for customers when providing services related to operational activities.

12. Implementation and evaluation of the execution of legal documents, regulations, procedures, and guidelines governing operational activities issued by VSD.

13. Other activities of VSD related to securities and the securities market.

These contents are guided in Article 8 of Circular 116/2017/TT-BTC, effective from December 8, 2017.

- Nguyen Trinh -

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