In Vietnam, what are requirements for securities depository registration in Vietnam?
What are requirements for securities depository registration in Vietnam? What is a "Clearing banks" in Vietnam? What are requirements for a commercial bank to register securities depository in Vietnam?
<subquestion>What are requirements for securities depository registration in Vietnam?</subquestion>
Hello Lawnet. I would like to know some information about requirements for securities depository registration in Vietnam according to the current Law. Thank you!
Answer:
Pursuant to Article 57 of the Law on Securities in 2019 stipulating requirements for securities depository registration in Vietnam as follows:
A commercial bank or FBB may apply for securities depository registration when it:
- has the license for establishment and operation in Vietnam which allows provision of securities depository services;
- has satisfactory capital adequacy ratios prescribed by banking laws and has profit in the last year; and
- has the premises and equipment serving the depositing and payment of securities.
A securities company may apply for securities depository registration when it is licensed for securities brokerage.
Above are information about requirements for securities depository registration in Vietnam.
<subquestion>What is a "Clearing banks" in Vietnam?</subquestion>
Hello Lawnet. According to the Law on Securities in 2019, which banks are clearing banks? What are their duty? Thank you!
Answer:
Pursuant to Clause 1 Article 69 of the Law on Securities in 2019 as follows:
Clearing banks include State Bank of Vietnam and commercial banks that provide payment services for securities transactions on the securities transaction system.
As regulations above, Clearing banks include State Bank of Vietnam and commercial banks. Their duty is providing payment services for securities transactions on the securities transaction system.
Above are information about clearing banks and their duty in Vietnam.
<subquestion>What are requirements for a commercial bank to register securities depository in Vietnam?</subquestion>
My commercial bank is going to register securities depository at Vietnam Securities Depository and Clearing Corporation (VSDCC). What requirements do we have to meet in order to register securities depository in Vietnam according to the currect Law?
Answer:
Pursuant to Clause 1. Article 57 of the Law on Securities in 2019 stipulating requirements for a commercial bank or FBB to register securities depository in Vietnam as follows:
A commercial bank or FBB may apply for securities depository registration when it:
- has the license for establishment and operation in Vietnam which allows provision of securities depository services;
- has satisfactory capital adequacy ratios prescribed by banking laws and has profit in the last year;
- has the premises and equipment serving the depositing and payment of securities.
As regulations above, a commercial bank must have provision of securities depository services in the license, profit in the last year, and the premises and equipment serving the depositing and payment of securities.
Above are information about requirements for a commercial bank to register securities depository in Vietnam.
