15 Tasks of Vietnam Securities Depository and Clearing Corporation

15 Tasks of Vietnam Securities Depository and Clearing Corporation (Internet image)

The Government of Vietnam issued Decision 26/2022/QD-TTg dated December 16, 2022, on the establishment, organization, and operation of the Vietnam Securities Depository and Clearing Corporation.

Accordingly, the 15 tasks of the Vietnam Securities Depository and Clearing Corporation are as follows:

1. Regulations on the establishment of the Vietnam Securities Depository and Clearing Corporation

Pursuant to Article 1 of Decision 26/2022/QD-TTg stipulating the establishment of the Vietnam Securities Depository and Clearing Corporation on the basis of converting the Vietnam Securities Depository Center as follows:

- The Vietnam Securities Depository and Clearing Corporation is a state-owned enterprise organized and managed as a one-member limited liability company, with the state owning 100% of the charter capital; it has legal status and its own seal.

Opening accounts in Vietnamese dong and foreign currencies at the State Treasury, domestic commercial banks, and branches of foreign banks;

Independent accounting, implementation of financial regulations, statistical reporting, accounting, auditing, information disclosure, and financial obligations as prescribed by law

+ International transaction name: Viet Nam Securities Depository and Clearing Corporation.

+ Abbreviation: VSDC

+ Vietnam Securities Depository and Clearing Corporation has its head office in Hanoi and a branch in Ho Chi Minh City.

The Vietnam Securities Depository and Clearing Corporation inherits all rights and responsibilities of the Vietnam Securities Depository Center in accordance with the law.

Exercising rights and perform obligations as prescribed in the Law on Securities, the Law on Enterprises, the Law on Management, and the use of state capital invested in production and business at enterprises and relevant provisions of law;

Carrying out enterprise registration in accordance with the provisions of the Law on Enterprises.

2. Tasks of the Vietnam Securities Depository and Clearing Corporation

In Article 2 of Decision 26/2022/QD-TTg, the functions and duties are as follows:

The Vietnam Securities Depository and Clearing Corporation has the function of organizing the registration, depository, clearing, and settlement of securities; supervising the activities of registration, depository, clearing, and settlement of securities transactions on the stock market in accordance with the provisions of the securities law;

other functions and duties as prescribed by law and the charter of organization and operation of the Vietnam Securities Depository and Clearing Corporation.

3. Main tasks of the Vietnam Securities Depository and Clearing Corporation

The Vietnam Securities Depository and Clearing Corporation has the following main tasks:

(1) Formulating and organizing the implementation of strategies, plans for investment and development, 5-year production and business plans, and annual production and business plans after being approved by competent authorities in accordance with regulations.

(2) Promulgating regulations on registration, depository, clearing, and settlement of securities, the membership regulations of the Vietnam Securities Depository and Clearing Corporation, and other professional regulations after being approved by the State Securities Commission;

Developing operational and risk management processes for each business

(3) Providing securities registration, custody, clearing, and settlement services;

Registering security interests for securities that have been centrally registered at the Vietnam Securities Depository and Clearing Corporation at the request of customers;

Providing other services as stipulated in the Charter of the Vietnam Securities Depository and Clearing Corporation;

Issuing domestic securities codes and international securities identification codes for securities centrally registered at the Vietnam Securities Depository and Clearing Corporation;

Approving, changing, or canceling securities registration at the Vietnam Securities Depository and Clearing Corporation

(4) Providing information related to the ownership of securities by the holder of securities in a public company or issuing organization at the request of such a public company or issuer and competent authorities as prescribed by law.

(5) Approving and canceling the membership of the Vietnam Securities Depository and Clearing Corporation;

Suspension of depository members' securities depository activities, as well as suspension of clearing and settlement of securities transactions by clearing members;

Withdrawing the certificate of the depository member and the certificate of the clearing member.

(6) Supervising the activities of registration, depository, clearing, and settlement of securities transactions;

Supervising the foreign investor's ownership ratio in accordance with the law on securities and the securities market;

Members of the Vietnam Securities Depository and Clearing Corporation's obligations are monitored for compliance.

(7) Ensuring material and technical foundations and databases for securities registration, depository, clearing, and settlement activities Take measures to protect the database and keep the original documents on registration, depository, clearing, and settlement of securities in accordance with the law on accounting and statistics.

(8) Confidentiality of information related to the customer's property;

Refusing to blockade, hold, extract assets, extract, or copy securities ownership information of customers without the consent of customers, except at the request of a competent authority; or requesting information from auditors performing audits of the financial statements of the Vietnam Securities Depository and Clearing Corporation and the financial statements of depository members in accordance with law.

(9) Coordinating the dissemination and propagation of knowledge about securities and the securities market to investors.

(10) Providing information and coordinating with the Vietnam Stock Exchange and its subsidiaries in securities operations and competent authorities in the investigation to prevent and combat violations of the law on securities and the securities market.

(11) Separately managing the client's assets from the assets of the Vietnam Securities Depository and Clearing Corporation; separately managing the assets of payment support funds, clearing funds, and risk prevention funds in accordance with law; using payment support sources in case a member of the Vietnam Securities Depository and Clearing Corporation is temporarily insolvent as prescribed by law

(12) Acting for the benefit of securities depositors and owners, compensate customers for damage in case of failure to perform obligations, causing damage to the customers' legitimate rights and interests, except in force majeure cases.

(13) Receiving, managing, and effectively using, preserving, and developing the state capital according to the financial mechanism for the Vietnam Securities Depository and Clearing Corporation

(14) Reports and recommendations to the State Securities Commission on measures to respond to and overcome incidents, events, and fluctuations affecting securities registration, depository, clearing, and settlement activities of the Vietnam Securities Depository and Clearing Corporation; violations by members of the Vietnam Securities Depository and Clearing Corporation

(15) Other duties as prescribed by law and the Charter of the Vietnam Securities Depository and Clearing Corporation

4. Charter capital of the Vietnam Securities Depository and Clearing Corporation

In Article 3 of Decision 26/2022/QD-TTg, the charter capital is regulated as follows:

- The charter capital of the Vietnam Securities Depository and Clearing Corporation is VND 1,000 billion, determined by the equity of the Vietnam Securities Depository according to the audited financial statements before the date on which the Vietnam Securities Depository and Clearing Corporation was granted the Certificate of Business Registration.

The Vietnam Securities Depository and Clearing Corporation's charter capital must be adjusted in accordance with the provisions of the law on the management and use of state capital invested in production and business in enterprises.

5. Organizational and management structure of the Vietnam Securities Depository and Clearing Corporation

Article 4 of Decision 26/2022/QD-TTg stipulates the organizational and management structure as follows:

- The organizational and management structure of the Vietnam Securities Depository and Clearing Corporation includes a board of directors, a general director, a supervisory board, and professional departments and divisions.

- The Chairman of the Members' Council and the General Director of the Vietnam Securities Depository and Clearing Corporation shall be appointed or dismissed by the Minister of Finance at the proposal of the Members' Council.

6. Charter of organization and operation of the Vietnam Securities Depository and Clearing Corporation

In Article 5 of Decision 26/2022/QD-TTg, the charter of organization and operation is as follows:

The Minister of Finance promulgates, amends, and supplements the Charter of organization and operation of the Vietnam Securities Depository and Clearing Corporation at the proposal of the Members' Council of the Vietnam Securities Depository and Clearing Corporation and with the opinion of the Chairman of the State Securities Commission.

Ngoc Nhi

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