Securities to collateralise Vietnam
11 September 2014 Hanoi
Image: Shutterstock
The Vietnam Securities Depositary (VSD) issued a list of securities acceptable as collateral ahead of the implementation of securities lending regulation.
There are 233 securities, listed on the Hanoi Stock Exchange and the Ho Chi Minh City Stock Exchange, that qualify, including 60 on the HNX30 and VN30 indices.
The list also includes government bonds and government-guaranteed bonds listed on the Hanoi Stock Exchange.
The VSD issued its decision in preparation for the operation of exchange-traded funds in Vietnam and as support for securities trading in case of transaction corrections in which a temporary shortage of securities payment would occur.
Dedication rates of asset value was set at five percent on government bonds and government-guaranteed bonds, 30 percent on securities in the VN30 and HNX30 indices, and 40 percent on others.
The VSD said the reduction rates aimed to prevent risks and ensure the rights of lenders, since a number of stocks might be priced beyond their true value.
The lending interest rates will be subject to agreements between borrowers and lenders but should not exceed 120 percent of the rate regulated by the State Bank of Vietnam.
There are 233 securities, listed on the Hanoi Stock Exchange and the Ho Chi Minh City Stock Exchange, that qualify, including 60 on the HNX30 and VN30 indices.
The list also includes government bonds and government-guaranteed bonds listed on the Hanoi Stock Exchange.
The VSD issued its decision in preparation for the operation of exchange-traded funds in Vietnam and as support for securities trading in case of transaction corrections in which a temporary shortage of securities payment would occur.
Dedication rates of asset value was set at five percent on government bonds and government-guaranteed bonds, 30 percent on securities in the VN30 and HNX30 indices, and 40 percent on others.
The VSD said the reduction rates aimed to prevent risks and ensure the rights of lenders, since a number of stocks might be priced beyond their true value.
The lending interest rates will be subject to agreements between borrowers and lenders but should not exceed 120 percent of the rate regulated by the State Bank of Vietnam.
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