Decision No. 171/2000/QĐ-NHNN13 On the issuance of regulations on the registration of short-term negotiable instruments

DECISION OF THE GOVERNOR OF THE STATE BANK OF VIETNAM

Issuing regulations on the registration of short-term negotiable instruments

GOVERNOR OF THE STATE BANK OF VIETNAM

Pursuant to the Law on the State Bank of Vietnam No. 01/1997/QH10 dated December 12, 1997 and the Law on Credit Organizations No. 02/1997/QH10 dated December 12, 1997;

Pursuant to the Government Decree No. 15/CP dated March 2, 1993 on the tasks, powers, and responsibilities for state management of ministries and ministerial-level agencies;

At the proposal of the Director of the State Bank of Vietnam's Trading Department,

DECISION:

Article 1. The attached Decision promulgates the "Regulations on the Registration of Short-Term Negotiable Instruments."

Article 2. This Decision shall take effect fifteen days from the date of signature.

Article 3The Head of the Office, the Director of the Trading Department, the Heads of relevant units under the State Bank of Vietnam, the Directors of the State Bank of Vietnam Branches in provinces and centrally-administered cities, and the General Managers (Directors) of credit organizations participating in open market operations shall be responsible for implementing this Decision.

REGULATIONS ON THE REGISTRATION OF SHORT-TERM NEGOTIABLE INSTRUMENTS

Issued together with Decision No. 171/2000/QĐ-NHNN13 dated May 25, 2000 of the Governor of the State Bank of Vietnam

PART I

GENERAL PROVISIONS

Article 1. Scope of application

These regulations stipulate the procedures for registering and retaining various types of short-term negotiable instruments owned by credit organizations participating in open market operations at the State Bank of Vietnam to implement open market operations.

Article 2. Types of short-term negotiable instruments subject to registration include:

1. Treasury bills.

2. State Bank bills.

3. Other types of short-term negotiable instruments specified by the Governor of the State Bank of Vietnam during each period.

Article 3. The registration and retention of short-term negotiable instruments for participation in open market operations shall be carried out at the State Bank of Vietnam's Trading Department or at branches of the State Bank of Vietnam in provinces and centrally-administered cities designated by the Governor of the State Bank of Vietnam (hereinafter referred to as the Registration and Retention Unit).

PART II

SPECIFIC PROVISIONS

Article 4. By no later than 10:00 on the day of the open market operation transaction, participating members must register and submit the short-term negotiable instruments at the Registration and Retention Unit.

Article 5. Short-term negotiable instruments mentioned in Article 2 must meet the following conditions:

1. They must be tradable.

2. They must be issued in Vietnamese dong.

3. For negotiable instruments that are bought and sold outright, the remaining term must not exceed 90 days.

4. For negotiable instruments sold and committed to repurchase, the remaining term must be longer than the term of the sale and repurchase agreement with the State Bank of Vietnam.

Article 6. Submission of short-term negotiable instruments

When registering short-term negotiable instruments, credit organizations shall prepare and submit two copies of the submission form for short-term negotiable instruments (Form No. 01/ĐK) to the Registration and Retention Unit, containing the following information:

1. Name and code of the credit organization submitting the short-term negotiable instruments.

2. Name of the short-term negotiable instrument.

3. Form of the short-term negotiable instrument.

4. Term of the short-term negotiable instrument.

5. Face value of the short-term negotiable instrument.

6. Interest rate of the short-term negotiable instrument.

7. Issue date.

8. Due date of the short-term negotiable instrument.

Article 7. Acceptance of short-term negotiable instruments

1. When accepting short-term negotiable instruments from credit organizations, the Registration and Retention Unit shall carry out the following procedures:

a. Verify the authenticity of the short-term negotiable instrument.

b. Check the details recorded on the submission form for short-term negotiable instruments.

c. Process the acceptance, retention, and safekeeping of the short-term negotiable instrument (if it is a certificate type).

d. Process the freezing of the value of the short-term negotiable instrument (if it is a book-entry type).

e. Sign and confirm on the submission form for short-term negotiable instruments, return one copy to the registering credit organization and retain one copy.

2. The retention and safekeeping of short-term negotiable instruments shall be conducted in accordance with current regulations of the State Bank of Vietnam.

Article 8. Withdrawal of Short-term Valuable Papers

1. Credit institutions are permitted to withdraw short-term valuable papers that have been registered in the following cases:

a. The short-term valuable paper has reached its maturity date for payment.

b. At the request of the credit institution that registered the short-term valuable paper (in the case where the credit institution did not win the bid).

2. Credit institutions are not allowed to withdraw short-term valuable papers during the period they are implementing a contract for sale and repurchase.

3. When withdrawing registered short-term valuable papers, credit institutions shall prepare and submit two copies of the withdrawal request form for short-term valuable papers to the Registration and Custody Department (according to Form No. 02/ĐK) with the following contents:

a. Name and code of the credit institution requesting the withdrawal of short-term valuable papers.

b. Name of the short-term valuable paper.

c. Form of the short-term valuable paper.

d. Term of the short-term valuable paper.

e. Face value of the short-term valuable paper.

f. Interest rate of the short-term valuable paper.

g. Date of issue.

h. Due date for payment of the short-term valuable paper.

i. Reason for requesting the withdrawal of the short-term valuable paper.

4. Upon receipt of the withdrawal request form for short-term valuable papers from credit institutions, the Registration and Custody Department shall perform the following tasks:

a. Verify whether the elements on the withdrawal request form for registered short-term valuable papers are consistent with the registered short-term valuable papers.

b. Process the withdrawal of the short-term valuable papers.

c. Sign and confirm on the withdrawal request form for short-term valuable papers, return one copy to the credit institution requesting the withdrawal of short-term valuable papers and retain one copy.

CHAPTER III

IMPLEMENTING PROVISIONS

Article 9. Any amendments or supplements to this Regulation shall be decided by the Governor of the State Bank./.