Vietnam: 06 cases of revocation of the certificate of securities depository registration

According to Article 60 of the Law on Securities 2019 of Vietnam, Vietnam Securities Depository and Clearing Corporation (VSDCC) will suspend a depository member for up to 90 days if such member:

- Regularly fails to fulfill its obligations specified in this Law and VSDCC’s charter; or

- Causes heavy damage to its clients.

Concurrently, the State Securities Commission (SSC) will revoke the certificate of securities depository registration from a securities company, commercial bank or foreign branch banks (FBB) if:

- The certificate holder fails to rectify the violations mentioned in Clause 1 of this Article by the end of the suspension period;

- The securities depository operation is not initiated within 12 months from the issuance date of the certificate;

- The certificate holder’s has its license for establishment and operation revoked;

- The certificate holder no longer exists or is converted as prescribed by the Law on Enterprises;

- The certificate holder wishes to terminate its securities depository operation and the termination is accepted by SSC;

- The requirements for registration of securities depository operations specified in Article 57 of this Law are not fully satisfied.

After the certificate of securities depository registration is revoked, the depository member shall finalize its securities depository account in accordance with regulations of VSDCC.

View more details at the Law on Securities 2019 of Vietnam, effective from January 01, 2021.

Ty Na

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