Securities registered as security measures at the Securities Depository and Clearing Corporation are freely transferable securities, right? To which agency must the Securities Depository and Clearing Corporation transfer data on registration of security measures in securities? In which cases must the Securities Depository and Clearing Corporation provide information on securities registered as security measures to the People’s Court? Through today’s article, let’s learn about this issue with Pham Consult!
Securities registered as security measures at the Securities Depository and Clearing Corporation are freely transferable securities, right?
Pursuant to Point a, Clause 2, Article 169 of Decree 155/2020/ND-CP, the following provisions are made:
Subjects, scope and principles of registration of security measures
1. Securities centrally registered at the Vietnam Securities Depository and Clearing Corporation used to secure the performance of obligations in secured transactions are registered for security measures at the Vietnam Securities Depository and Clearing Corporation. Registration of security measures for other securities is carried out at the Transaction and Asset Registration Centers of the National Registration Department of Secured Transactions under the Ministry of Justice in accordance with the provisions of law on registration of security measures.
2. The registration of security measures at the Vietnam Securities Depository and Clearing Corporation is carried out in accordance with the general principles of the law on registration of security measures and the following principles:
a) Securities registered for security measures must be freely transferable securities, not used as collateral in securities transactions, not blocked, temporarily detained and must be deposited before implementation. During the registration period of security measures, securities registered for security measures must be blocked at the Vietnam Securities Depository and Clearing Corporation;
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Thus, based on the above provisions, securities registered for security measures are freely transferable securities, not used as collateral in securities transactions, not blocked, temporarily detained and must be deposited before implementation.
To which agency must the Vietnam Securities Depository and Clearing Corporation transfer data on registration of security measures by securities?
Pursuant to Clause 5, Article 173 of Decree 155/2020/ND-CP, the following provisions are provided:
Tasks, powers and responsibilities of the Vietnam Securities Depository and Clearing Corporation regarding the registration of security measures
1. Guide and organize the registration of security measures, manage the registration of security measures for securities centrally registered at the Vietnam Securities Depository and Clearing Corporation in accordance with the provisions of this Decree and other relevant legal documents.
2. Develop an electronic database on the registration of security measures at the Vietnam Securities Depository and Clearing Corporation and guide the use, access and exploitation of information on the online registration system of security measures at the Vietnam Securities Depository and Clearing Corporation.
3. Guide the freezing and unfreezing of securities registered for security measures.
4. Provide information on securities that have been registered for security measures at the request of organizations, individuals, or competent state agencies.
5. Transfer data on registration of security measures in securities centrally registered at the Vietnam Securities Depository and Clearing Corporation to the National Registration Department of Secured Transactions under the Ministry of Justice to update and synchronize data into the database on security measures in movable property (except aircraft and ships).
6. The Vietnam Securities Depository and Clearing Corporation collects service fees (service prices) for registration of security measures for securities in accordance with regulations of the Ministry of Finance based on the law on prices.
7. Report annually to the Ministry of Justice on the registration of security measures in securities centrally registered at the Vietnam Securities Depository and Clearing Corporation.
Accordingly, the Vietnam Securities Depository and Clearing Corporation must transfer data on registration of security measures in securities to the National Registration Department of Secured Transactions under the Ministry of Justice to update and synchronize data into the database on security measures in movable property (except aircraft and ships).
Pursuant to the provisions of Clause 2, Article 171 of Decree 155/2020/ND-CP, the following provisions are provided:
Providing information on registration of security measures
1. Individuals and organizations have the right to inquire or request information on securities registered for security measures at the Vietnam Securities Depository and Clearing Corporation.
2. The People’s Court, the People’s Procuracy, the investigation agency, the civil judgment enforcement agency, and other competent state agencies have the right to request the Vietnam Securities Depository and Clearing Corporation to provide information on securities registered for security measures to serve the investigation, prosecution, trial, and judgment enforcement within the scope and field of management of their agencies.
3. Information on securities registered for security measures provided by the Vietnam Securities Depository and Clearing Corporation includes: the guarantor and the secured party; securities code, quantity of securities registered for security measures; time of registration of security measures.
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Thus, the Vietnam Securities Depository and Clearing Corporation must provide information on securities registered for security measures when requested by the People’s Court to serve the investigation, prosecution, trial, and execution of judgments.
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