Escrowing Securities with Registered Guarantee Measures

Applied when customers mortgage securities in their trading accounts at FPTS as collateral for loans in organizations and individuals (the guaranteeing parties). Upon the request of customers and lenders, FPTS carries out procedures to escrow the former’s securities at the Vietnam Securities Depository and Clearing Corporation (VSDC) and simultaneously block them at FPTS. The escrowed securities cannot be traded, withdrawn or transferred until there is a written request for release from the relevant lenders and customers and a confirmation proof by VSDC.

Conditions for escrowing securities as collateral via VSDC:

• Escrowed securities must be deposited in a securities account.
• Escrowed securities must be freely transferable, not used as collateral in securities transactions, and not frozen or temporarily held.

Instructions for escrowing/releasing securities with registered guarantee measures

Step 1: Go to FPTS Headquarter/Branches/Transaction Offices or contact the broker for assistance to complete securities transfer procedure.

- Provide the following documents:

• For individual customer: Citizen Identification Card/Passport (valid original)
• For institutional customer: Business Registration Certificate (public notarized copy), Citizen Identification Card/Passport (copy) of the legal representative, Letter of Appointment

Step 2: Customers and lenders complete securities escrowing/releasing documents

Securities escrowing documents include

• Application for Securities Mortgage between the Customer and the Guaranteeing Party: 01 copy
• Power of attorney (if any): 01 notarized copy
• Request for blocking securities of the Guaranteeing Party: 03 copies
• Request for registering guarantee measures: 04 copies
• List of securities registered with guarantee measures: 04 copies

Securities releasing documents include

• Request for removal of registered guarantee measures: 04 copies
• List of securities registered for removal of guarantee measures: 04 copies
• Power of attorney (if any): 01 notarized copy

Step 3: After securities escrowing/releasing documents are approved by VSDC (typically after 2-3 working days), FPTS will escrow/release the corresponding securities balance from the account and notify of it via the registered email.

Step 4: FPTS sends forms validated by VSCD and FPTS to the Customer and the Lending Party:

• List of securities registered for removal of guarantee measures/ List of securities registered with guarantee measures: Original copy verified by FPTS
• Guarantee measure-registered documents: Validated by VSDC.