On August 19, 2022, Vietnam Securities Depository (VSD) promulgated Decision No. 110/QD-VSD (“Decision 110”) with an attachment of Regulations on depository members at VSD, replacing the Regulations on depository members attached to Decision No. 112/QD-VSD (“Decision 112”) dated August 23, 2021.
The highlight of the new Regulation on depository members is the supplement of various cases of handling violations of payment, clearing process of depository members. Specifically:
- Failure to update investor information on the VSD system within the specified time
- Failure to confirm payment for securities transactions;
- Failure to perform or delay in sending VSD the report on money and securities allocation result to investors;
- Depository member is a counter-buyer in a transaction whose payment deadline is delayed due to insufficient securities to be transferred or insufficient blockade money to be transferred;
- Failure to confirm or confirming sufficient money to pay for securities transactions, but by the time of closing the balance, being insolvent, which leads to the application of the money support mechanism for securities transaction payment.
The aforementioned acts, depending on the severity and frequency of violations, shall be subject to corresponding sanctions, including: written reminder, reprimand; suspension of securities depository activities; suspension of clearing and payment of securities transactions of depository members; suspension or termination of the use of the online securities trading code registration system.
Decision 110 shall take effect as of August 29, 2022.
Comment: