Supplementing regulations on securities handling to ensure enforcement of civil judgments

In Decree No. 152/2024/ND-CP recently issued, the Government supplements regulations on handling securities to ensure enforcement of civil judgments.

The Government issued Decree No. 152/2024/ND-CP amending and supplementing a number of articles of Decree No. 62/2015/ND-CP detailing and guiding the implementation of a number of articles of the Law on Civil Judgment Enforcement, amended and supplemented by a number of articles under Decree No. 33/2020/ND-CP.

In particular, Decree No. 152/2024/ND-CP supplements Clauses 5, 6, 7, 8, Article 13 of Decree No. 62/2015/ND-CP on the application of measures to secure and enforce civil judgments. Specifically:

"5. The handling of securities listed or registered for trading at stock exchanges is carried out as follows:

a) The enforcement officer shall issue a decision to freeze securities and send it to the Vietnam Securities Depository and Clearing Corporation (hereinafter referred to as VSDC) and other agencies, organizations and individuals as prescribed in Article 67 of the Law on Civil Judgment Enforcement. Within 01 working day from the date of receipt of the enforcement officer's decision, VSDC shall freeze the securities in accordance with the provisions of the law on securities and send a notice to the civil enforcement agency and the depository member.

The decision to freeze securities includes the following contents: the request to freeze securities; full name, number and date of issue of identity card or citizen identification card for individuals; name, number and date of issue of Certificate of Business Registration or equivalent legal documents for legal entities; securities code and quantity of securities requested to be frozen.

b) The enforcement officer shall issue a decision to enforce the seizure and handling of securities in accordance with the provisions of Clause 3, Article 71 of the Law on Civil Judgment Enforcement.

Within 05 working days from the date of valid notification of the decision to enforce the seizure and handling of securities, the parties may agree on the sale of securities in accordance with the provisions of the law on securities and notify the civil enforcement agency in writing of such agreement.

After the above deadline, the civil enforcement agency shall issue a document requesting VSDC to transfer the seized securities to the civil enforcement agency. The civil enforcement agency shall have the rights and obligations prescribed by law regarding the securities it has received. Within 05 working days from the date of receipt of the request from the civil enforcement agency, VSDC shall transfer the securities. Within 02 working days from the date of completion of the transfer of securities, the Enforcement Officer shall carry out the sale according to the agreement of the parties. In case the parties do not reach an agreement or cannot reach an agreement, the Enforcement Officer shall sell the securities by order matching method at the reference price according to the provisions of the law on securities.

In case of proactively issuing a decision to enforce the judgment, immediately after issuing the decision to enforce the seizure, the civil judgment enforcement agency shall issue a document requesting VSDC to transfer the seized securities to the civil judgment enforcement agency and sell the securities by order matching method at the reference price according to the provisions of the law on securities.

6. In handling unlisted securities, unregistered securities, and securities that have been centrally registered at VSDC or are listed and registered for trading but cannot be sold according to the provisions of Clause 5 of this Article, the Enforcement Officer shall carry out the freezing according to the provisions of Article 67 of the Law on Civil Judgment Enforcement; issue a decision to enforce the seizure and handling of assets according to the provisions of Clause 3, Article 71 of the Law on Civil Judgment Enforcement. The order and procedures for valuation and sale of securities shall be implemented according to the provisions of Articles 98, 99, 101 and other provisions of the Law on Civil Judgment Enforcement, the law on asset auctions and other relevant laws. After selling the securities, the civil judgment enforcement agency shall send a document requesting VSDC to transfer the ownership of the securities to the buyer according to the provisions of law.

7. The enforcement officer shall seize and handle securities, shares, capital contributions not covered by Clause 5 and Clause 6 of this Article and valuable papers in accordance with the provisions of Articles 71, 83, 92, 98, 99, 101 and other provisions of the Law on Civil Judgment Enforcement, the law on property auctions, the law on enterprises and other relevant laws. When making a decision on seizure, the enforcement officer shall simultaneously issue a written notice of the seizure of such assets to the enterprise where the judgment debtor contributed capital and relevant agencies and organizations to prevent the transfer of ownership or change of the current status of the assets until a decision is made by the civil judgment enforcement agency.

8. In case the civil judgment enforcement agency is applying measures to secure and enforce the judgment corresponding to the obligations of the judgment debtor and the judgment enforcement costs as prescribed in Clause 1 of this Article, and the judgment debtor still has other assets, the Enforcement Officer shall have a written request for the relevant competent authority to immediately notify the civil judgment enforcement agency when transactions arise with respect to those assets for coordination in handling according to the provisions of law.".

Source: https://baodautu.vn/bo-sung-quy-dinh-ve-xu-ly-chung-khoan-de-bao-dam-thi-hanh-an-dan-su-d230336.html