The Vietnam Securities Depository (VSD) recently announced the listof securities to be used as collateral to implement securities lendingregulations in its Decision No 111/QD-VSD.
Accordingly, exactly223 codes listed on two national stock exchanges were qualified. Thisincludes 60 codes on the HNX30 and VN30 packages, made up of the topstocks by capitalisation and liquidity, and others based on liquidity.It also includes Government bonds and Government-guaranteed bonds listedon Hanoi Stock Exchange.
The VSD issued its decision on thesecurities lending and borrowing system on August 19, in preparation forthe operation of exchange-traded funds in Vietnam and as support forsecurities trading in case of transaction corrections in which atemporary shortage of securities for payment would occur.
Deductionrates of asset value, the rate to be deducted from the prices ofsecurities used as collateral, was set at five percent on Governmentbonds and Government-guaranteed bonds, 30 percent on securities in theVN30 and HNX30 packages and 40 percent on others.
VSD said thereduction rates aimed to prevent risks and ensure the rights of lenders,since a number of stocks might be priced beyond their true value.
Thelending interest rates will be subject to agreements between borrowersand lenders but should not exceed 120 percent of the rate regulated bythe State Bank of Vietnam.-VNA
Accordingly, exactly223 codes listed on two national stock exchanges were qualified. Thisincludes 60 codes on the HNX30 and VN30 packages, made up of the topstocks by capitalisation and liquidity, and others based on liquidity.It also includes Government bonds and Government-guaranteed bonds listedon Hanoi Stock Exchange.
The VSD issued its decision on thesecurities lending and borrowing system on August 19, in preparation forthe operation of exchange-traded funds in Vietnam and as support forsecurities trading in case of transaction corrections in which atemporary shortage of securities for payment would occur.
Deductionrates of asset value, the rate to be deducted from the prices ofsecurities used as collateral, was set at five percent on Governmentbonds and Government-guaranteed bonds, 30 percent on securities in theVN30 and HNX30 packages and 40 percent on others.
VSD said thereduction rates aimed to prevent risks and ensure the rights of lenders,since a number of stocks might be priced beyond their true value.
Thelending interest rates will be subject to agreements between borrowersand lenders but should not exceed 120 percent of the rate regulated bythe State Bank of Vietnam.-VNA
