This Circular provides for rules of trading of financial instruments and the signing of agreement on trading of financial instruments (including promissory notes, treasury bills, deposit certificates and bonds) among domestic banks.
However, this Circular does not apply to the following activities:
- Trading of financial instruments issued by credit institutions and foreign bank branches on the international market;
- Trading of bonds issued by credit institutions under the Government's guarantee;
- Domestic issuance of financial instruments by credit institutions and foreign bank branches; credit institutions’ repurchase and swap of bonds they issued;
- Repo or reverse repo transactions in financial instruments between credit institutions and foreign bank branches;
- Transfer of ownership to financial instruments due to collateral disposition. The transfer of ownership in this case shall be carried out in accordance with law regulations on secured transactions.
According to Article 3 of this Circular, the trading of financial instruments among domestic banks must be agreed upon in the Vietnamese Dong.
The financial instrument to be purchased or sold must not matured.
Foreign bank branches shall not be allowed to purchase convertible bonds.
This Circular takes effect from October 27th, 2021 and amends, supplements to a number of articles of Circular No. 01/2021/TT-NHNN dated March 31st, 2021.
|Published||Vietlaw's Newsletter No. 521|