Time limit for issuance of the certificate of securities depository registration

Time limit for issuance of the certificate of securities depository registration (Internet image) 

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

1. Time limit for issuance of the certificate of securities depository registration in Vietnam

Time limit for issuance of the certificate of securities depository registration in Vietnam according to Article 59 of the Securities Law 2019 is as follows:

- Within 15 days from the receipt of the satisfactory application, State Securities Commission shall decide whether to issue the certificate of securities depository registration, or reject the application and provide explanation in writing.

- Within 12 months from the issuance date of the certificate, the certificate holder shall complete the procedures for depository member registration at Vietnam Securities Depository and Clearing Corporation and initiate the securities depository operation.

2. Application for securities depository registration in Vietnam

Application for securities depository registration in Vietnam according to Article 58 of the Securities Law 2019 are as follows:

- A commercial bank’s or FBB’s application for securities depository registration shall consist of:

= The application form;

= The applicant’s license for establishment and operation;

= The description of the applicant’s premises and equipment serving the depositing and payment of securities;

= Documents proving the applicant’s satisfactory capital adequacy ratios prescribed by banking law;

= The latest audited annual financial statement.

- A securities company’s application for securities depository registration shall consist of the documents specified in Point a and Point c Clause 1 of Article 58 of the Securities Law 2019.

3. Regulations on suspension of securities depository operation, revocation of the certificate of securities depository registration in Vietnam

Regulations on suspension of securities depository operation, revocation of the certificate of securities depository registration according to Article 60 of the Securities Law 2019 are as follows:

- Vietnam Securities Depository and Clearing Corporation will suspend a depository member for up to 90 days if such member:

= Regularly fails to fulfill its obligations specified in this Law and Vietnam Securities Depository and Clearing Corporation’s charter; or

= Causes heavy damage to its clients.

- State Securities Commission will revoke the certificate of securities depository registration from a securities company, commercial bank or FBB if:

= The certificate holder fails to rectify the violations mentioned in Clause 1 of Article 60 of the Securities Law 2019 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 2020;

= The certificate holder wishes to terminate its securities depository operation and the termination is accepted by State Securities Commission;

= The requirements for registration of securities depository operation specified in Article 57 of the Securities Law 2019 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 Vietnam Securities Depository and Clearing Corporation.

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