Vietnam State Securities Commission explains record date and ex rights date rules for securities holder entitlements

The Vietnam State Securities Commission published guidance explaining how the record date and the ex rights date determine which investors receive rights attached to securities they hold, including attendance rights, dividends, bonus shares, subscription rights and bond interest and principal payments. The note applies to organizations whose securities are registered at the Vietnam Securities Depository and Clearing Corporation, including listed and trading registered securities, and explains that only holders recorded on the record date are entitled to the related rights. Under the guidance, the Vietnam Securities Depository and Clearing Corporation prepares the list of eligible holders as of the record date and calculates and allocates rights based on the notice from the registered organization. The ex rights date is the business day immediately before the record date. Investors who buy and hold shares before the ex rights date remain eligible, investors who buy on the ex rights date do not receive the entitlement, and investors who sell on that date still retain it. For shares traded on an exchange, the reference price on the ex rights date is automatically adjusted downward by the value of the dividend or the rights ratio, except in certain cases under Vietnam Stock Exchange rules, which the Commission notes may affect margin maintenance and sale pricing. The Commission also points investors to issuer websites, the State Securities Commission disclosure system, exchange and Vietnam Securities Depository and Clearing Corporation websites, and notifications from custody members as sources for record date and ex rights date information.