VI In which cases can a depository member being a securities company open more than one securities depository account? What accounts are included in the securities depository accounts of a depository member being a securities company? Through today’s article, let’s learn about this issue with Pham Consult!
In which cases can a depository member being a securities company open more than one securities depository account?
Pursuant to Clause 1, Article 56 of the 2019 Securities Law, a depository member is a securities company, commercial bank, or foreign bank branch that is granted a Certificate of registration for securities depository activities by the State Securities Commission and is approved by the Vietnam Securities Depository and Clearing Corporation to become a depository member;
Next, pursuant to Point d, Clause 1, Article 14 of the 2019 Securities Law, the following provisions are provided:
Opening a securities depository account
1. A depository member must open a securities depository account at the Vietnam Securities Depository and Clearing Corporation to conduct transactions on that member’s securities. Each depository member is only allowed to open 01 securities depository account at the Vietnam Securities Depository and Clearing Corporation and is not allowed to open a securities depository account at another depository member, except in the following cases:
a) A depository member opens a securities depository account at a fund establishment member to conduct transactions related to the exchange-traded fund;
b) A depository member that is a securities company that has terminated its membership at the Vietnam Stock Exchange is allowed to open a securities depository account at another depository member to handle the remaining securities in the self-trading account;
c) A depository member that is not a clearing member opens a securities depository account at a clearing member to serve the purpose of managing clearing collateral assets and making payments for securities transactions for the depository member;
d) A depository member that is a securities company issuing covered warrants opens an additional securities depository account at the Vietnam Securities Depository and Clearing Corporation to carry out risk hedging activities for covered warrants;
d) A depository member that is a market maker opens an additional securities depository account at the Vietnam Securities Depository and Clearing Corporation to carry out market making activities.
Thus, in the case that a depository member that is a securities company issuing covered warrants opens an additional securities depository account at the Vietnam Securities Depository and Clearing Corporation to carry out risk hedging activities for covered warrants.
Which accounts does a depository member that is a securities company include?
Pursuant to Clause 1, Article 15 of Circular 119/2020/TT-BTC, the securities depository account of a depository member that is a securities company includes the following accounts:
– Trading securities account;
– Suspended securities account;
– Securities account used for secured transactions;
– Blocked and temporarily held securities account;
– Securities account awaiting payment;
– Securities account awaiting return;
– Securities account awaiting lending;
– Securities account mortgaged for securities loans at the Vietnam Securities Depository and Clearing Corporation;
– Margin account for clearing in case the depository member is also a clearing member of the Vietnam Securities Depository and Clearing Corporation;
– Other accounts according to the regulations of the Vietnam Securities Depository and Clearing Corporation.
What does the securities depository account of a depository member that is a securities company include?
Pursuant to Clause 3, Article 15 of Circular 119/2020/TT-BTC, the following provisions are made:
Securities depository accounts of depository members and organizations opening direct accounts at the Vietnam Securities Depository and Clearing Corporation
…
2. Securities depository accounts of depository members specified in Clause 1 of this Article are classified as follows:
a) Accounts of the depository members themselves;
b) Accounts for domestic customers of depository members;
c) Accounts for foreign customers of depository members.
3. Securities depository accounts of depository members and organizations opening direct accounts at the Vietnam Securities Depository and Clearing Corporation include the following contents:
a) Securities depository account number;
b) Name and address of depository members and organizations opening direct accounts;
c) Quantity, type and code of deposited securities;
d) Quantity of securities increased or decreased and reasons for the increase or decrease;
d) Other necessary information.
Thus, the securities depository account of a depository member that is a securities company includes the following contents:
– Securities depository account number;
– Name and address of the depository member, organization opening the account directly;
– Quantity, type and code of the deposited securities;
– Quantity of securities increased, decreased and reasons for the increase, decrease;
– Other necessary information.
Comments
