Securities accepted by the Vietnam Securities Depository and Clearing as clearing margin assets

17:25, 11/01/2021

Recently, the Vietnam Ministry of Finance has issued the Circular No. 119/2020/TT-BTC on registration, depository, clearing and settlement of securities.

Chứng khoán được chấp nhận là tài sản ký quỹ bù trừ, thông tư 119/2020/TT-BTC

According to Clause 2 Article 29 of the Circular No. 119/2020/TT-BTC of the Ministry of Finance of Vietnam, securities accepted by the Vietnam Securities Depository and Clearing (VSDC) as clearing margin assets for securities transactions must satisfy the following conditions:

- Not in the category of being warned, controlled or suspended from trading on the Stock Exchange or the securities of the issuers in the state of dissolution, bankruptcy, consolidation or merger;

- Not being collateral in transactions in accordance with the civil law on collateral transactions, including collateral in margin transactions at securities companies; are not assets being frozen by regulatory agencies in accordance with relevant laws;

- Not being frozen or held in custody at VSDC;

- It is freely transferable and has been deposited on a securities trading account at VSDC; is an asset owned by the clearing margin party being an investor or a clearing member;

- Other conditions according to VSDC's regulations.

Besides, securities selected by a clearing member to allow investors to post clearing margins must ensure:

- Satisfy the conditions specified at Points a, b, c, d, Clause 2 Article 29 of the Circular No. 119/2020/TT-BTC (as mentioned above);

- Satisfy other conditions of the clearing member.

More details at 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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