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Please Sign in your LuatVietnam account and sign up for the lookup software .| Issuing bodies: | Ministry of Finance | Effective date: | |
| Official number: | 119/2020/TT-BTC | Signer: | Huynh Quang Hai |
| Legislation Type: | Circular | Expired date: | Updating |
| Issuing date: | 31/12/2020 | Effect: | |
| Fields: | Finance - Banking , Securities |
Registration, depository, clearing and settlement of securities
On December 31, 2020, the Ministry of Finance issues the Circular No. 119/2020/TT-BTC on regulations for registration, depository, clearing and settlement of securities.
Accordingly, depository members must open a securities depository account at the Vietnam Securities Depository and Clearing Corporation to carry out transactions for such member’s securities. Each member may only open one securities depository account at the Vietnam Securities Depository and Clearing Corporation and must not open depository account in other depository members.
Besides, an insurance enterprise, when making investments on the securities market, may open two separate securities depository accounts to separately manage investments from equity capital and from insurance premiums. In case an insurance enterprise has a foreign investor owning more than 50% of the charter capital, depository securities on the securities depository account sourced from equity shall be governed by the law on foreign ownership in the securities market.
The Vietnam Securities Depository and Clearing Corporation shall conduct securities deregistration in the following cases: Debt instruments of the Government, government-guaranteed bonds, municipal bonds, corporation bonds, covered warrants are in maturity date; Certificates of investment fund, covered warrants subjected to cancellation of listing; Exchange-traded fund is dissolved; etc.
This Circular takes effect on February 15, 2021.
For further details of the Circular 119/2020/TT-BTC, Click here
