Circular 04/2016/TT-NHNN providing for the depository and use of valuable papers at the State Bank of Vietnam

CIRCULAR

Providing for the depository and use of valuable papers at the State Bank of Vietnam

Pursuant to the Law on the State Bank of Vietnam No. 46/2010/QH12 dated June 16, 2010;

Pursuant to the Law on Credit Institutions No. 47/2010/QH12 dated June 16, 2010;

Pursuant to the Law on Securities No. 70/2006/QH11 dated June 29, 2006;

Pursuant to the Law Amending and Supplementing a Number of Articles of the Law on Securities No. 62/2010/QH12 dated November 24, 2010;

Pursuant to the Government’s Decree No. 01/2011/ND-CP dated January 5, 2011, on the issuance of government bonds, government-guaranteed bonds and local government bonds.

Pursuant to the Government’s Decree No. 156/2013/ND-CP dated November 11, 2013, defining the functions, tasks, powers and organizational structure of the State Bank of Vietnam;

At the proposal of the Director of the Transaction Bureau;

The Governor of the State Bank of Vietnam promulgates the Circular providing for the depository and use of valuable papers at the State Bank of Vietnam.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Circular regulates the depository and use of valuable papers at the State Bank of Vietnam (hereinafter referred to as the State Bank).

Article 2. Subjects of application

1. Units of the State Bank.

2. Credit institutions, foreign bank branches and other organizations under the decision of the Governor of the State Bank (hereinafter referred to as members).

Article 3. Interpretation of terms

1. Valuable paper means a proof evidencing the debt-payment obligation of the issuer towards the owner in a certain duration under the interest payment condition and other conditions.

2. Depository of valuable papers at the State Bank means the receipt of valuable papers for deposit, preservation, transfer and exercise of the rights related to the ownership of valuable papers directly deposited at the State Bank by a member or deposited at the customer account of the State Bank at the Vietnam Securities Depository (hereinafter referred to as VSD) to ensure the rights and interests related to valuable papers of the owner and perform some operations at the State Bank

3. Transfer of valuable papers between parties in a transaction using valuable papers means the transfer of book-entry valuable papers or the handover, the counting and the recording into the accounting system for certificated valuable papers. The transfer of valuable papers may or may not include the transfer of the ownership of the valuable papers.

4. Dealing account means an account opened by VSD for a depository member of VSD or for an organization allowed to open an account at VSD to manage valuable papers owned by the depository member or the organization allowed to open the account at VSD.

5. Brokerage account means an account opened by VSD for a depository member of VSD or for an organization allowed to open an account at VSD to manage valuable papers owned by the depository member or the customer of the organization allowed to open the account at VSD.

6. Valuable paper accounts of the State Bank include the valuable paper accounts under the management of the State Bank and the State Bank's valuable paper accounts deposited at VSD.

Valuable paper account under the management of the State Bank means an internal account of the State Bank for depositing valuable papers owned by the State Bank.

The State Bank’s valuable paper account deposited at VSD means a dealing account opened by VSD at the request of the State Bank to deposit valuable papers owned by the State Bank.

7. Customer account of the State Bank at VSD means a brokerage account opened by VSD at the request of the State Bank to block and deposit valuable papers owned by the member in order to carry out certain operations at the State Bank.

8. Valuable paper account deposited by the customer means an account opened by the State Bank to monitor the depository of valuable papers of the member. Valuable paper account deposited by the customer includes the valuable paper account deposited by the customer at the State Bank and the valuable paper account deposited by the customer in the State Bank's customer account at VSD.

Valuable paper account deposited by the customer at the State Bank is the account opened by the State Bank at the request of members to deposit valuable papers directly at the State Bank.

Valuable paper account deposited by the customer on the State Bank's customer account at VSD means VSD account opened at the request of the State Bank to deposit the member’s valuable paper at VSD.

9. Pledged valuable paper account means an internal account of the State Bank opened for members to conduct accounting of valuable papers according to the member's request for pledge or deposit when participating in some monetary market operations.

10. Deposited valuable paper account for grant of credit in the interbank market means an internal account of the State Bank opened for members to block valuable papers in lending transactions secured by pledging valuable papers among members in the interbank market.

Article 4. Conditions, par value and code of valuable papers deposited at the State Bank

1. Valuable papers include:

a) State Bank Bills;

b) Government bonds;

c) Government-underwritten bonds with settlement of 100% of principal and interest upon maturity;

d) Other valuable papers decided by the Governor of the State Bank in each period.

2. Conditions for valuable papers

a) Under the legal ownership of members;

b) Under the valuable papers specified in Clause 1 of this Article;

c) The right to receive principal and interest has not been finalized at maturity;

d) The certificated valuable papers deposited at the State Bank must be intact, not torn, damaged, not changed in color, faded with pattern images, letters, numbers, not crumpled or crushed, blurred, dirty, erased.

3. Par value of valuable papers

The par value of valuable papers deposited at the State Bank is VND 100,000 (one hundred thousand dong) or a multiple of VND 100,000 (one hundred thousand dong).

For the special valuable papers directly managed by the State Bank and the valuable papers in foreign currencies, the par value of valuable papers shall comply with the provisions of the law for each type of valuable paper.

4. Valuable paper code

Valuable papers deposited at the State Bank are uniformly managed according to the issued International Securities Identification Number system (ISIN) upon issuance.

Article 5. Use of valuable papers deposited at the State Bank

1. Valuable papers used in monetary market operations include:

a) Open market operations;

b) Re-financing operations:

- Granting loans secured by the pledge of valuable papers of the State Bank to the credit institutions, the foreign bank branches;

- Discounting valuable papers of the State Bank for the credit institutions, the foreign bank branches;

- Other forms of refinancing decided by the Governor of the State Bank.

c) Pledge of valuable papers to set up overdraft limit and overnight lending limit in interbank electronic payment;

d) Deposit of valuable papers to set up net debt limit in interbank electronic payment.

2. Transactions of valuable papers deposited at the State Bank among members include:

a) Granting loans secured by the pledge of valuable papers among members;

b) Purchasing and selling valuable papers among members.

Chapter II

SPECIFIC REGULATIONS

Section 1. DEPOSITORY OF VALUABLE PAPERS

Article 6. Opening of deposited valuable paper account

1. An application for account opening

In order to deposit valuable papers at the State Bank, the organizations specified in Clause 2, Article 2 of this Circular (hereinafter referred to as organizations) shall make and send 01 (one) set of documents to the State Bank, including:

a) Written request for opening a deposited valuable paper account according to Appendix 1a/LK attached to this Circular;

b) Registration form of seal and signature according to Appendix 1b/LK attached to this Circular;

c) Documents proving the legal establishment and operation of the organization opening of a deposited valuable paper account, such as establishment decision, operation license, business registration certificate or other documents as prescribed by law;

d) Documents proving the legal representative status of the account holder's representative together with his/her valid identity card or citizen’s identity card or passport;

dd) In case the opening of a depository account is required to have the signature of the chief accountant or the person in charge of accounting on the accounting documents for transactions with the bank in accordance with the law, apart from the papers mentioned at Points a, b, c and d, Clause 1 of this Article, the application for opening of deposited valuable paper account must contain the appointment decision enclosed with the valid people’s identity card or citizen’s identity card or passport of the chief accountant (or person in charge of accounting) of the organization opening the deposited valuable paper account.

2. The papers specified at Points a and b, Clause 1 of this Article are originals, the papers specified at Points c, d, dd, Clause 1 of this Article are copies issued from the master register or certified copies or copies accompanied by presentation of the original for comparison.

3. Within 05 (five) working days from the date of receipt of complete and valid documents as prescribed in Clauses 1 and 2 of this Article, the State Bank (the Transaction Bureau) shall open the deposited valuable paper account for members.

Article 7. Depository of valuable papers

1. For book-entry valuable papers deposited at the State Bank

a) In case a member conducts depository of valuable papers on the list of valuable papers under the management of the State Bank:

The member submits to the State Bank (the Transaction Bureau) a written request for depository of valuable papers according to Appendix 2/LK attached to this Circular and related documents. Within 01 (one) working day from the date of receiving the member's written request for depository of valuable papers, the State Bank (the Transaction Bureau) shall transfer the valuable papers to the valuable paper account deposited by the customer at the State Bank;

b) In case the winning member purchases valuable papers in the transaction sessions organized by the State Bank, the State Bank (the Transaction Bureau) shall transfer the member's winning valuable papers into the valuable paper account deposited by the customer at the State Bank.

2. For book-entry valuable papers deposited at VSD

a) When there is a need to deposit valuable papers at the State Bank, the member shall transfer valuable papers from the member's depository account at VSD to the State Bank’s customer account opened at VSD. Upon receiving VSD's notice on the transfer of deposited valuable papers of a member, the State Bank will update such changes to the valuable paper account deposited by the customer;

b) In case the winning member purchases valuable papers in the transaction sessions where the State Bank acts as an issuing agent or the State Bank sells valuable papers, the State Bank shall send VSD auction information for VSD's accounting for depository of valuable papers.

3. For the certified valuable papers

The member shall submit to the State Bank (the Transaction Bureau or the authorized branch of the State Bank) a written request for depository of valuable papers according to Appendix 2/LK attached to this Circular and all certified valuable papers. The State Bank (the Transaction Bureau or the authorized branch of the State Bank) shall perform receipt, counting and inspection of the certified valuable papers. Within 01 (one) working day from the date of completion of inspection of the valuable papers, the State Bank (the Transaction Bureau) shall carry out the procedures to transfer the valuable papers to the valuable paper account deposited by the customer at the State Bank.

Article 8. Principles of transfer of the ownership of valuable papers

1. For valuable papers deposited directly at the State Bank, the State Bank (the Transaction Bureau) shall transfer the ownership of valuable papers on the date of the transaction on the following principles:

a) In case the State Bank is the purchaser or the receiver of valuable papers when handling security assets, the valuable papers shall be transferred from the valuable paper account deposited by the customer at the State Bank or the pledged valuable paper account to the State Bank's valuable paper account;

b) In case the State Bank is the seller, the valuable papers shall be transferred from the State Bank's valuable paper account to the valuable paper account deposited by the customer at the State Bank;

c) In case handling pledged assets in lending transactions secured by pledging valuable papers among members in the interbank market, the valuable papers shall be transferred from the valuable paper account for grant of credit in the interbank market of the pledger to the valuable paper account deposited by the customer at the State Bank of the pledgee.

2. For the valuable papers deposited on the State Bank's customer account at VSD, the transfer of ownership of valuable papers shall be performed by VSD according to the agreement between the State Bank and VSD on the following principles:

a) In case the State Bank is the purchaser or the receiver of valuable papers when handling security assets, the valuable papers shall be transferred from the valuable paper account deposited by the customer on the State Bank's customer account at VSD to the State Bank’s valuable paper account deposited at VSD;

b) In case the State Bank is the seller, the valuable papers shall be transferred from the State Bank’s valuable paper account deposited at VSD to the valuable paper account deposited by the customer on the State Bank's customer account at VSD;

c) In case of handling of pledged assets in lending transactions secured by pledge of valuable papers among members on the interbank market, the valuable papers shall be transferred from the pledger to the pledgee in the State Bank’s customer account opened at VSD.

3. The State Bank shall carry out the transfer of ownership of valuable papers according to the purchase and sale contract or the Notice of auction results in monetary market operations as authorized by the member. For the operations of discount, pledge, deposit of valuable papers, re-financing on the basis of special bonds and factoring bonds at market value of the Vietnam Asset Management Company (VAMC) and purchase and sale of valuable papers among members, the transfer of valuable paper rights comply with the provisions of Articles 13, 14, 15, 16, 17 of this Circular.

4. The State Bank (the Transaction Bureau) shall perform the transfer of ownership of valuable papers in case of division, separation, merger, consolidation and revocation of the licenses of credit institutions at the request of members being owners of valuable papers under written request for transfer of ownership of valuable papers according to Appendix 5/LK attached to this Circular and related papers.

Article 9. Payment of principal and interest of valuable papers

1. For valuable papers deposited directly at the State Bank

a) Book-entry valuable papers

Upon due date of the valuable papers, the State Bank (the Transaction Bureau) shall inspect the fulfillment of obligations of the members towards the State Bank in the operations of use of related valuable papers. In case the members have fulfilled their obligations, the procedures for payment of principal and interest to members shall be carried out. If the obligations have not been fulfilled, the provisions of Clause 4 of this Article shall apply;

b) Certified valuable papers

Upon due date of the certified valuable papers, the members request to withdraw the valuable paper as prescribed in Article 10 of this Circular, the State Bank (the Transaction Bureau) shall inspect the fulfillment of obligations of the members towards the State Bank in the operations of use of related valuable papers. In case the members have fulfilled their obligations, the valuable papers shall be returned to the member to carry out payment procedures at the issuing organization or the agent of issuing organization. If the obligations have not been fulfilled, the provisions of Clause 4 of this Article shall apply.

2. For the valuable papers deposited at the State Bank's customer account at VSD

a) Upon due date of the interest of the valuable papers with periodic interest payment, the State Bank (the Transaction Bureau) shall inspect the fulfillment of obligations of the members towards the State Bank in the operations of use of related valuable papers. In case the members have fulfilled their obligations, the State Bank (the Transaction Bureau) shall send VSD a notice confirming the list of members owning valuable papers in the customer account of the State Bank so that VSD can carry out the procedures for interest payment to the members. If the obligations have not been fulfilled, the provisions of Clause 4 of this Article shall apply;

b) Upon due date of the valuable papers, the State Bank (the Transaction Bureau) shall inspect the fulfillment of obligations of the members towards the State Bank in the operations of use of related valuable papers. In case the members have fulfilled their obligations, the State Bank (the Transaction Bureau) shall send VSD a notice confirming the members' relevant valuable papers in the State Bank's customer account at VSD that are eligible for principal and interest payments so that VSD can carry out the payment procedures to the members. If the obligations have not been fulfilled, the provisions of Clause 4 of this Article shall apply;

c) The payment of principal and interest of valuable papers deposited at the State Bank's customer accounts at VSD shall comply with the agreement between the State Bank and VSD.

3. The interests and other incomes (if any) from valuable papers during the transfer of ownership from the seller to the purchaser in term operations in the monetary market shall comply with the State Bank's regulations.

4. In case the members have not fulfilled their obligations towards the State Bank, the State Bank (the Transaction Bureau) shall temporarily block or retain the principal and interest of valuable papers currently used for these obligations. The handling of members who have not yet fulfilled their obligations shall comply with regulations of the State Bank in each operation.

Article 10. Withdrawal of valuable papers

1. Valuable papers deposited directly at the State Bank

When wishing to withdraw the certified valuable papers deposited at the State Bank, the members shall send to the State Bank (the Transaction Bureau) a written request for withdrawal of valuable papers according to Appendix 3/LK attached to this Circular.

Within 01 (one) working day after receiving the members' request, the State Bank (the Transaction Bureau) shall inspect the fulfillment of obligations of the members towards the State Bank in the operations of use of related valuable papers. In case the members have fulfilled their obligations, the accounting of valuable papers from the valuable paper account deposited by the customer at the State Bank and the return of the certified valuable papers to the member shall be carried out. If the obligations have not been fulfilled, the provisions of Clause 3 of this Article shall apply.

2. Valuable papers deposited at the State Bank's customer account at VSD

When there is a need to withdraw valuable papers deposited at the State Bank's customer account at VSD, the member shall send a written request to the State Bank (the Transaction Bureau) to request the transfer of valuable papers from the valuable paper account deposited by the customer on the State Bank's customer account at VSD to the member's depository account at VSD.

Within 01 (one) working day after receiving the members' request, the State Bank (the Transaction Bureau) shall inspect the fulfillment of obligations of the members towards the State Bank in the operations of use of related valuable papers. In case the members have fulfilled their obligations, the State Bank (the Transaction Bureau) shall request VSD to transfer the member's valuable papers from the State Bank's customer account at VSD to the member's depository account at VSD. If the obligations have not been fulfilled, the provisions of Clause 3 of this Article shall apply.

3. In case the members have not fulfilled their obligations towards the State Bank, the State Bank (the Transaction Bureau) shall temporarily block valuable papers currently used for these obligations. The handling of members who have not yet fulfilled their obligations shall comply with regulations of the State Bank in each operation.

Article 11. Closing of deposited valuable paper account

1. When there is no need to deposit valuable papers at the State Bank or due to division, separation, merger, consolidation and revocation of the License, the member shall send to the State Bank (the Transaction Bureau) a written request for closing of valuable papers according to Appendix 4/LK attached to this circular.

2. Within 05 working days from the date of receiving the member's request, the State Bank (the Transaction Bureau) shall close the member's deposited valuable paper account, request VSD to close the corresponding deposited valuable paper account on the State Bank's customer account at VSD and notify the member.

3. In case of the member’s division, separation, merger, consolidation and revocation of the License, the procedures for closing the deposited valuable paper account are not completed, the State Bank (the Transaction Bureau) shall close the account after 15 working days from the date of receipt of the Decision of the Governor of the State Bank on division, separation, merger, consolidation and revocation of the license (if the account has no balance) or freeze the account ( if the account has balance) and notify the member. The handling of valuable papers deposited on the account shall comply with the provisions of law on liquidation of credit institutions' assets and relevant laws.

Section 2. USE OF VALUABLE PAPERS IN MONETARY MARKET OPERATIONS

Article 12. Open market operations

1. The State Bank definitively purchases or purchases valuable papers for a certain period of time

Under the valuable paper purchase and sale contract, for term purchase transactions of the State Bank of Vietnam or Notice of auction results for definitively purchased transactions of the State Bank, the State Bank (the Transaction Bureau) shall pay for the purchase of valuable papers and carry out procedures for transferring ownership of valuable papers from the valuable paper account deposited by the customer to the State Bank's valuable paper account for the winning valuable papers.

For term purchase transactions of the State Bank for valuable papers, on the maturity date of the contract, the member must make payment for repurchase of valuable papers. Based on the valid documents, the State Bank (the Transaction Bureau) shall transfer the ownership of valuable papers from the State Bank's valuable papers account to the member’s valuable paper account deposited by the customer.

2. The State Bank definitively sells or sells valuable papers for a certain period of time

Under the valuable paper purchase and sale contract, for term selling transactions of the State Bank of Vietnam or Notice of auction results for definitively sold transactions of the State Bank, the member must pay for the purchase of valuable papers and the State Bank (the Transaction Bureau) shall transfer the ownership of valuable papers from the State Bank's valuable paper account to the member’s valuable paper account deposited by the customer.

For term selling transactions of the State Bank for valuable papers, on the maturity date of the contract, the member must resell the valuable papers in the contract to the State Bank. Based on valid documents, the State Bank (the Transaction Bureau) shall make payment to the member and transfer the ownership of valuable papers from the member’s valuable paper account deposited by the customer to the State Bank's valuable paper account.

Article 13. Discount of valuable papers of the State Bank for members

1. After receiving the member's request to discount valuable papers, in case of accepting the member's request, the State Bank (the Transaction Bureau) shall transfer the ownership of valuable papers from the member’s valuable paper account deposited by the customer to the State Bank's valuable paper account for valuable papers accepted for discount.

2. In case the State Bank accepts a term discount, the remaining term of the valuable paper must be longer than the discount term.

After the member makes payment according to the commitment on repurchase of valuable papers discounted by the State Bank, the State Bank (the Transaction Bureau) shall transfer the ownership of valuable papers from the State Bank's valuable papers account to the member’s valuable paper account deposited by the customer.

Article 14. Lending operations secured by pledging valuable papers, re-financing on the basis of special bonds and factoring bonds at market value of the Vietnam Asset Management Company (VAMC)

1. After the member send a written request to the State Bank for lending by pledging valuable papers or refinancing on the basis of special bonds or factoring bonds at market value of VAMC and the State Bank accepts the member's request, the member transfers valuable papers as pledged assets or special bonds or factoring bonds at market value of VAMC to the State Bank. The State Bank (Transaction Bureau) shall block and transfer the valuable papers from the member’s valuable paper account deposited by the customer to the member's pledged valuable paper account at the State Bank, and at the same time, transfer the lending amount to the member's deposit account at the State Bank.

2. In case the member wishes to exchange valuable papers (in lending operations secured by a pledge of valuable papers) or after the member fully repays the principal and interest, based on the member’s request for refund or exchange valuable papers and payment documents, the State Bank (the Transaction Bureau) shall release and transfer valuable papers from the member's pledged valuable paper account to the member’s valuable paper account deposited by the customer at the State Bank.

Article 15. Pledge, deposit of valuable papers to set up overdraft limit and overnight lending limit, net debt limit in interbank electronic payment

1. After receiving the member's request to pledge and deposit valuable papers to set up overdraft limit, net debt limit in interbank electronic payment, the State Bank (the Transaction Bureau) shall block and transfer valuable papers from the member’s valuable paper account deposited by the customer to the pledged valuable paper account at the State Bank.

2. The State Bank shall release the member's pledged valuable papers in case the member's pledged valuable papers become due for payment or the member uses another valuable paper to replace it or when the member no longer needs to maintain the overdraft limit, net debt limit in interbank electronic payment. The State Bank shall release a part or all of the pledged valuable papers at the request of the member and transfer the valuable papers from the pledged valuable paper account to the member’s valuable paper account deposited by the customer.

3. In order to release the pledged valuable papers, the member submits to the State Bank (the Transaction Bureau) a written request to return the pledged valuable papers. The State Bank (Transaction Bureau) shall inspect the fulfillment of members' obligations towards the State Bank on the interbank electronic payment system. In case the members have fulfilled their obligations, the State Bank (the Transaction Bureau) shall carry out procedures for returning valuable papers to the members.

4. In case the members have not fulfilled their obligations towards the State Bank on interbank electronic payment system, the State Bank (the Transaction Bureau) shall temporarily block valuable papers currently used for these obligations. The handling of members who have not yet fulfilled their obligations shall comply with specific regulations of the State Bank in the field of pledge and deposit of valuable papers to set up overdraft limits and overnight lending limits, net debt limit in interbank electronic payment.

Section 3. TRANSACTION OF VALUABLE PAPERS AMONG MEMBERS

Article 16. Loans secured by pledging valuable papers among members

1. Valuable papers used in lending transactions secured by pledge of valuable papers among members must have not been used to secure the performance of obligations in operations at State bank.

2. When wishing to pledge valuable papers to borrow loans from another member (the pledgee), the member (the pledger) shall send 01 (one) set of documents to the State Bank (the Transaction Bureau) including:

a) Written request for certification of blockade of valuable papers according to Appendix 6/LK attached to this Circular;

b) Valuable paper pledge contract between the pledgee and the pledger (the original).

3. The State Bank (Transaction Bureau) shall receive documents, carries out procedures to block valuable papers and transfer valuable papers from the valuable paper account deposited by the customer to the deposited valuable paper account for grant of credit in the interbank market of the pledger.

4. During the pledge period, if agreed by the pledgee, the pledger may request the State Bank (the Transaction Bureau) to extend the pledge term and/or exchange valuable papers blocked by the State Bank with other valuable papers deposited at the State Bank. The State Bank shall consider implementing the pledger's request after receiving the pledgee's confirmation.

5. The State Bank shall release and transfer valuable papers from the deposited valuable paper account for grant of credit in the interbank market to the member’s valuable paper account deposited by the customer upon receipt of a written request for release of valuable papers from the pledger, together with the pledgee's certification of consent for the release of valuable papers.

6. In case the pledger fails to repay all or part of the loan principal and interest on time to the pledgee, the State Bank shall carry out procedures to transfer the ownership of valuable papers from the pledger to the pledgee at the pledgee’s written request with confirmation of the pledger (the owner of the valuable papers) and the record of debt settlement between the two parties. In case the pledger fails to perform the obligation and does not confirm the use of the security assets instead of the debt repayment obligation, the handling of the security assets shall comply with the provisions of law.

Article 17. Purchase and sale of valuable papers among members

1. For valuable papers deposited directly at the State Bank

a) The members are entitled to purchase and sell the valuable papers deposited directly at the State Bank. The members selling valuable papers shall send to the State Bank (the Transaction Bureau) a written request for transfer of ownership of valuable papers according to Appendix 5/LK attached to this Circular and the valuable paper sale and purchase contract between two parties. The State Bank (the Transaction Bureau) transfers the ownership of valuable papers from the seller's valuable paper account deposited by the customer to the purchaser. The valuable papers may continue to be deposited at the State Bank unless otherwise requested by the purchaser;

b) In case of term purchase and sale of valuable papers, the term selling member shall send to the State Bank (the Transaction Bureau) a written request for transfer of ownership of valuable papers according to Appendix 5/LK attached to this Circular and the valuable paper sale and purchase contract between two parties. The State Bank shall transfer the ownership of valuable papers from the term seller to the term purchaser.

On the contract maturity date, based on valid payment documents and written request for transfer of ownership of valuable papers according to Appendix 5/LK attached to this Circular of the valuable paper owner (the term purchaser), the State Bank (the Transaction Bureau) shall transfer the ownership of valuable papers from the term purchaser to the term seller. In other cases, the State Bank shall transfer the ownership of valuable papers according to a lawful agreement between the parties or as prescribed by law.

2. For valuable papers being deposited at VSD, the members must carry out procedures to withdraw valuable papers from the State Bank's customer account at VSD before purchase and sale. The purchase and sale of valuable papers being deposited at VSD shall comply with the provisions of the law on securities.

Chapter III

IMPLEMENTATION PROVISIONS

Article 18. Responsibilities of units of the State Bank

1. The Transaction Bureau

a) Carry out depository, payment, interest collection, depository fee collection, accounting, pledge, blockade and transfer of ownership of valuable papers at the State Bank according to regulations;

b) Monitor, review and decentralize transactions for personnel of members involved in the depository and use of valuable papers at the State Bank;

c) Provide the member with the right to look up the depository balance, the use of valuable papers of the member at the State Bank online and the account statement of the valuable papers deposited by the customer;

d) Act as the focal point to coordinate with relevant units in handling difficulties and problems during depository and use of valuable papers at the State Bank;

dd) The Director of the Transaction Bureau signs an agreement with VSD on the use of VSD's services and the connection of electronic data transmission between the two parties in the depository and use of valuable papers at the State Bank.

2. The Finance and Accounting Department

Guide the accounting for transactions on depository and use of valuable papers at the State Bank in accordance with this Circular.

3. The Informatics Technology Department

a) Act as the focal point to coordinate with the Transaction Bureau and related units to build, install, perform maintenance of the related software programs and ensure the transaction and communication network infrastructure for the depository and use of valuable papers at the State Bank;

b) Issue digital signatures, access keys, approval keys for the depository and use of valuable papers at the State Bank.

4. The Banking Supervision Agency

Act as the focal point to coordinate with relevant units to handle violations against members in implementing the provisions of this Circular.

5. The State Bank branches in provinces and centrally-run cities where foreign bank branches and credit institutions are headquartered

a) Check the validity and lawfulness of the valuable papers and keep the certificated valuable papers for members that have head office in the locality;

b) Manage, monitor and return the certificated valuable papers as notified by the Transaction Bureau.

Article 19. Responsibilities of members

1. Fully and promptly supply dossiers and documents as prescribed in this Circular and take responsibility before law for the accuracy and lawfulness of data and documents provided to the State Bank.

2. Make commitments and make full and timely payments to the State Bank and other members according to the signed contract.

3. Authorize the State Bank to transfer the ownership of valuable papers in monetary market operations.

4. Strictly comply with the requirements in the State Bank's notice on monetary market operations.

5. The members are responsible for paying service fees arising from the transfer of the ownership of valuable papers in accordance with regulations of the Ministry of Finance (if any).

Article 20. Transitional provisions

1. The credit institutions, the foreign bank branches and the organizations recognized as members in accordance with the Decision No. 1022/2004/QD-NHNN dated August 17, 2004 of the Governor of the State Bank, on promulgating the Regulation on the depository of valuable papers at the State Bank, shall continue to be members of the depository and use of valuable papers in accordance with this Circular.

2. The transactions performed before the effective date of this Circular shall continue to be performed according to the agreement signed between the related parties.

Article 21. Effect

1. This Circular takes effect from June 01, 2016.

2. From the effective date of this Circular, the following documents cease to be effective:

a) The Decision No. 1022/2004/QD-NHNN dated August 17, 2004 of the Governor of the State Bank, promulgating the Regulation on depository of valuable papers at the State Bank;

b) The Decision No. 42/2006/QD-NHNN dated August 28, 2006 of the Governor of the State Bank, amending and supplementing a number of articles of the Regulation on depository of valuable papers at the State Bank issued together with the Decision No. 1022/2004/QD-NHNN dated August 17, 2004 of the Governor of the State Bank.

3. The Chief of Office, the Director of Transaction Bureau, Heads of relevant units under the State Bank, Directors of the State Bank’s branches in provinces and centrally-run cities; Chairpersons of the Boards of Directors, Chairpersons of the Members' Councils, General Directors (the Directors) of credit institutions and foreign bank branches shall be responsible for organizing the implementation of this Circular./.

* All Appendices are not translated herein.