VN Securities Depository to grant int'l ISIN codes

Update: June, 27/2008 - 00:00

VN Securities Depository to grant int’l ISIN codes


HA NOI — Viet Nam Securities Depository will become the sole office in the country with the right to grant an International Securities Identification Number (ISIN) to local securities including stocks, bonds, and deposit certificates in the stock exchange, according to a recent decision by the State Securities Commission.

An ISIN code is used to identify specific securities issues, set by the International Organisation of Standardisation.

An ISIN code has 12 alphanumeric characters and is structured thus: the first two digits are reserved for the country of origin for the security, the next nine characters deal with the actual unique identifying number for the security, and the final digit, which is called a check digit, ensures the code’s authenticity and prevents errors.

The complex ISIN formula is calculated by computers and helps to protect against counterfeiting and forgery, which helps market regulators manage their stocks-trading in different exchanges.

In Viet Nam, regulators have so far managed the trading through a local coding system, which is useless in controlling stocks-trading in overseas markets.

"The granting of ISIN codes is considered as the next step to complete the legal framework for offshore listing," the commission claimed, adding that local firms are gradually beginning to list shares in overseas markets. ISIN codes would also help promote the accessibility of Vietnamese firms into global markets.

"As offshore listings will include deposits through the national centre, the granting of ISIN codes through depository centres also provides availability for local firms during the process of offshore listing" the commission stated. — VNS