On April 16, 2025, the Members’ Council of the Vietnam Securities Depository and Clearing Corporation (“VSDC”) issued Decision No. 30/HĐ-TV (“Decision 30”), replacing Decision No. 23/QĐ-HĐTV dated August 10, 2023, which provides detailed regulations on the registration and exercise of covered warrants at VSDC. This Decision introduces several amendments and supplements aimed at improving operational efficiency and facilitating the participation of market stakeholders.
Covered warrants (“warrants”) as defined under Decision 30 refer to European-style call warrants based on listed shares as underlying securities, which are exercisable only at maturity and settled in cash.
1. Application of digital technology in the registration and exercise of warrants
VSDC has officially implemented digital solutions in the processes of registering and exercising warrants by upgrading its operational systems. Accordingly, warrant registrants (“Warrant Issuers”) and depository members (“DMs”) may now carry out related procedures such as registration, depository, and information updates of warrants via an electronic platform, ensuring convenience, speed, and security.
2. Warrant registration dossiers
According to Decision No. 30, due to the implementation of a data integration mechanism with State regulatory authorities, VSDC has reduced documentation requirements for the warrant registration dossiers submitted by warrant issuers. Specifically, the following documents are no longer required to be submitted: the Certificate of Warrant Offering, the Report on Warrant Distribution Results, and the Confirmation of Warrant Distribution Results.
This regulation is intended to simplify administrative procedures, reduce the burden of documentation, and shorten processing time for warrant registration activities at VSDC.
3. Methods of submitting warrant registration dossiers
Decision No. 30/HĐ-TV introduces a new provision regarding the methods for submitting warrant registration dossiers. In addition to the traditional methods—direct submission and submission via postal services—warrant issuers may now submit dossiers electronically, thereby providing greater convenience during the registration process.
4. Procedures for de-registration of covered warrants
Compared to Decision No. 23/QĐ-HĐTV dated August 10, 2023, Decision 30 revises the procedures for the de-registration of warrants. Previously, in cases where the issuer ceased operations, the underlying securities were delisted, or the issuer voluntarily delisted the warrants, the issuer was required to proactively prepare and submit a de-registration dossier to VSDC.
Under the new regulation, VSDC will proactively review and automatically carry out the warrant de-registration procedures in all applicable cases, ensuring timeliness and consistency with information provided by the stock exchanges and relevant regulatory authorities.
The new regulations under Decision 30 on the registration and exercise of warrants are expected to enhance the operational efficiency of VSDC’s systems and facilitate warrant-related activities for issuers and market participants.
Decision 30 shall take effect from the official operation date of the Information Technology System under the package “Design, solution, provision, installation and transfer of the Information Technology System – Ho Chi Minh City Stock Exchange.”
Comment: