Stock market settlement to be speeded up by 4 hours
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The stock settlement cycle is set to be shortened by four hours, enabling investors to receive their share or money on the second morning after a transaction.
Thus, from August 29, they will get them at 11-11:30 a.m on the second day (T+2) instead of the current 3:30-4 p.m.
Now they have to wait until the next morning to sell securities they buy since trading ends at 2:45 p.m.
Depository participants must transfer money and stocks to customers before 1:00 p.m and report to the Vietnam Securities Depository before 4:30 p.m.
Questions & Answers
Q.When will the new, faster settlement cycle come into effect?
When will the new, faster settlement cycle come into effect?
The shortened stock settlement cycle is scheduled to begin on August 29. From this date, investors will receive their shares or money earlier on the second morning after a transaction.
Q.What is the new deadline for depository participants to transfer money and stocks to customers?
What is the new deadline for depository participants to transfer money and stocks to customers?
Depository participants will now need to transfer money and stocks to customers before 1:00 p.m. Also, they must report these transfers to the Vietnam Securities Depository by 4:30 p.m.
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