Vietnam: Processing the application for securities withdrawal at the request of the client within 02 working days

According to Article 21 of the Circular No. 119/2020/TT-BTC of the Ministry of Finance of Vietnam, clients are only required to withdraw securities within the number of securities they own on securities depository accounts, except for securities which are being held in custody, frozen or placed for clearing margin.

The depository member (DM) must forward to the Vietnam Securities Depository and Clearing (VSDC) the application for securities withdrawal within 01 working day from the date of receipt of a valid application from the client. VSDC is responsible for processing the application for securities withdrawal within 01 working day from the date of receipt of valid application of DM.

Thus, within 02 working days from the date of receipt of a valid application from the client, VSDC and DM must process the application for securities withdrawal at the request of the client. Concurrently, information on ownership of securities of the investor who withdraws securities shall be recorded in the list of owners of undeposited securities.

Note: The issuer is responsible for re-issuing the certificate of securities ownership or the securities ownership certificate book to the securities owner who has withdrawn the securities in case the issuer has issued the certificate of securities ownership or securities ownership certificate book.

Moreover, the withdrawal of securities due to expiry of their validity, withdrawal of securities due to voluntary de-registration of securities shall be carried out according to the principle that VSDC automatically records the decrease in the quantity of deposited securities on the securities depository account of DMs after the issuer completes application for deregistration of securities with VSDC. The withdrawal of securities deposited with VSDC shall comply with VSDC's regulations on securities depository.

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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