For securities registration, the circular abolished administrative procedures related to cases of ownership transfer other than those approved by VIE SEC.
For securities custody activities, it refines regulations on authorized securities company branches and commercial bank branches to conduct securities custody activities.
It refines regulations on securities transfers, freezing, unfreezing, securities borrowing and lending, and information on custody accounts to align with the practical implementation of the KRX system.
Before the CCP mechanism, clearing and settlement largely carries over Circular No. 18/2025/TT-BTC on the NPF mechanism.
Once the CCP mechanism is implemented, it refines the CCP regulations in Circular 119/2020/TT-BTC for stock, fund certificate and covered warrant transactions, consistent with the KRX system, the World Bank expert group's recommendations.
The circular is effective Nov. 16, 2026.
On Jul. 9, VIE SEC issued draft amending securities transactions regulations.
VIE SEC announced a draft circular to replace Circular No. 119/2020/TT-BTC regulating the registration, depository, clearing and settlement of securities transactions.
Follows VIE SEC Apr. 2025 finalized securities settlement regulations, see #250394.
Overview
VIE SEC notes that after more than five years in operation, Circular 119/2020/TT-BTC has shown shortcomings that need to be updated comprehensively.
It also notes that the new KRX IT system (#246330) requires standardization of processes to ensure consistency between legal regulations and the new technology system.
Circular Contents
The draft circular aims to modernize procedures, reduce administrative burden, and establish a legal foundation to support Vietnam's stock market upgrade.
It also establishes the legal foundation for a central counterparty (CCP) clearing mechanism.
Rules on margin accounts are updated to ensure no changes to the trading and settlement methods of institutional foreign investors.
The draft proposes a minimum initial contribution of VND 20bn for direct clearing members and VND 30bn for general clearing members to the clearing fund.
Reporting and administrative procedures are revised in line with the digital transformation agenda, making compliance easier for businesses and individuals.
Feedback Workshop
VIE SEC also held a workshop to collect comments and feedback on the draft circular.
The workshop emphasized that replacing the circular is necessary to comprehensively revise regulations and meet requirements for market upgrade and development.
A key focus of the draft is completing the CCP mechanism, aligning with the KRX system, and reducing administrative procedures without changing trading and settlement methods for investors.
Other proposals include updated securities registration, instant settlement for listed corporate bonds, updated clearing fund rules and streamlined procedures.
Comment Date
Comments on the draft circular must be submitted by Jul. 24, 2026.
Aug. 2026 Comments Summary
On Aug. 17, 2026, VIE GVT, VIE SEC published a summary of comments, acceptance, and explanations on the draft circular.
For securities registration, the circular abolished administrative procedures related to cases of ownership transfer other than those approved by VIE SEC.
For securities custody activities, it refines regulations on authorized securities company branches and commercial bank branches to conduct securities custody activities.
It refines regulations on securities transfers, freezing, unfreezing, securities borrowing and lending, and information on custody accounts to align with the practical implementation of the KRX system.
Before the CCP mechanism, clearing and settlement largely carries over Circular No. 18/2025/TT-BTC on the NPF mechanism.
Once the CCP mechanism is implemented, it refines the CCP regulations in Circular 119/2020/TT-BTC for stock, fund certificate and covered warrant transactions, consistent with the KRX system, the World Bank expert group's recommendations.
