HOT

Securities Depository

Securities depository is the receipt of consignment, safekeeping, transfer and acknowledgement of securities ownership of clients in the securities depository account system managed by Vietnam Securities Depository (VSD) in order to guarantee rights and interests relating to securities of shareholder. In accordance with Law on securities, securities of public companies (including securities of public companies listed on Stock Exchanges and securities of unlisted public companies) shall be centrally deposited at VSD before being traded. Securities depository for clients at VSD is performed according to the following principle: Clients deposit their securities at VSD’s depository members who will redeposit their clients’ securities at VSD. Securities depository accounts at VSD are managed as following: The total balance of clients’ securities depository accounts opening at depository members always match with the balance of depository members’ securities depository accounts open at VSD. The detailed balance of securities depository account of each client at depository members shall match with ownership figures of that client at VSD. In case of detecting information errors of depository members or their clients’ accounts, VSD shall immediately inform depository members and those members are responsible for adjusting appropriately. Securities deposited at VSD are clients’ assets, managed separately from VSD’s assets, and VSD shall not be allowed to use the clients’ securities for the sake of a third party or VSD itself.
At depository members, in order to ensure interests of clients whose securities are deposited, depository members have to open each depository account for each client and manage clients’ assets separately. Clients’ securities deposited at depository members are clients’ assets and managed separately from depository members’ assets. Depository members shall not be allowed to use securities in the clients’ securities depository accounts for the sake of a third party or depository members themselves.
VSD provides the following securities depository services for its clients:
- Securities lodging
- Securities withdrawal
- Transfer of non-traded securities 
- Securities pledging and releasing
Clients have to work with their depository members, at which they open their accounts, to get their securities consigned, withdrawn, transferred and pledged. Depository members manage information on securities ownership in book-entry depository account system.
Ownership transfer of centrally deposited securities is done by book-entry instead of transferring physical certificates.
Processes and procedures of securities depository are stipulated in the Guideline on Securities Depository issued with Decision No. 19 /QD-VSD dated 29th September 2017 by Chief Executive Officer of VSD.
Guideline on Securities Depository in Legal Documents on VSD’s website.