Rights and obligations of Vietnam Securities Depository and Clearing Corporation

Rights and obligations of Vietnam Securities Depository and Clearing Corporation (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Rights and obligations of Vietnam Securities Depository and Clearing Corporation

The rights and obligations of Vietnam Securities Depository and Clearing Corporation (VSDCC) according to Article 55 of the Law on Securities 2019 are as follows:

- VSDCC has the rights to:

+ Issue regulations on securities registration, depositing, offsetting and payment, and other operational regulations after they are approved by SSC;

+ Provide services including securities registration, depositing, offsetting and payment; registration of collateral for securities registered at VSDCC upon request of clients; provide other services specified in VSDCC’s charter;

+ Issue domestic ticker symbols and international securities identifying numbers to securities registered at VSDCC;

+ Approve, change, cancel registration of securities at VSDCC;

+ Grant and cancel membership of depository members of VSDCC; suspend depository members from providing securities depository services;

+ Use various sources to assist payment in case a member of VSDCC is temporarily insolvent as prescribed by law;

+ Other rights prescribed by law and VSDCC’s charter.

- VSDCC has the obligations to:

+ Ensure availability of premises and equipment serving the registration, depositing, offsetting and payment of securities;

+ Comply with regulations of law on accounting, audit, statistics, financial obligations, reporting, information disclosure;

+ Supervise the registration, depositing, offsetting and payment of securities, holdings of foreign investors, and fulfillment of obligations of VSDCC’s members;

+ Establish the process and risk management for each operation;

+ Implement necessary measures to protect the data, retain original documents about the registration, depositing, offsetting and payment of securities in accordance with regulations of law on accounting and statistics;

+ Provide information about holders of securities of the issuers and competent authorities as prescribed by law;

+ Protect confidentiality of information about clients’ holdings; refuse to freeze, hold, transfer asset, provide or copy information about clients’ holdings without their consensus, unless it is requested by a competent authority or the auditor that audits the financial statement of VSDCC or a depository member;

+ Cooperate in dissemination of knowledge about securities and the securities market among investors;

+ Provide information for and cooperate with VSE in securities activities; cooperate with other authorities in investigations and taking of actions against violations against regulations of law on securities and the securities market;

+ Separately manage assets of clients and VSDCC; assets of compensation funds, offsetting funds, risk management funds as prescribed by law;

+ Pay compensation to clients if the failure to fulfill VSDCC’s obligations cause damage to the lawful rights and interests of clients, except in force majeure events;

+ Operate in the interests of depositors and securities owners;

+ Fulfill other obligations prescribed by law and VSDCC’s charter.

- Executives and employees of VSDCC, in performance of their duties, shall comply with regulations of law on securities and the securities market, code of professional ethics, information confidentiality regulations and relevant laws.

2. Organizational structure of Vietnam Securities Depository and Clearing Corporation

Organizational structure of Vietnam Securities Depository and Clearing Corporation according to Article 53 of the Law on Securities 2019 is as follows:

- The Prime Minister shall decide the organizational structure of VSDCC in accordance with the Law on Securities 2019, the Law on Enterprises and relevant laws.

- The Chairperson of the Board of members, the Chairperson of the Board of Directors, General Director (Director) of VSDCC shall be designated and dismissed by the Minister of Finance at the request of the Board of members or Board of Directors of VSDCC and according to comments of the President of SSC.

- Rights and obligations of the Board of members, Board of Directors, General Director (Director), the Board of Controllers (Controllers) shall comply with regulations of law and the charter of VSDCC.

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