Updated: Jul 20
The Minister of Finance issued Circular No. 51/2021/TT-BTC dated 30 June 2021 guiding on the obligations of organizations and individuals in foreign investment activities on the Vietnamese stock market.
Defining the depository bank as a commercial bank or the branch of a foreign bank that has been granted a depository member certificate by Vietnam Central Securities Depository.
Supplementing regulations that foreign investors must open an indirect investment capital account to be allowed to conduct investment activities on the Vietnamese stock market.
The foreign investors open 01 indirect investment capital account at 01 depository bank which is licensed to do foreign exchange business; An issuers depository certificates in foreign countries shall open an indirect investment capital account at a depository bank which is licensed to conduct foreign exchange business.
When receiving entrusted capital, the securities investment fund management company, branch of foreign fund management company in Vietnam opens an an indirect investment capital account to receive capital from foreign investors without indirect investment capital account.
After being granted a securities trading code, foreign investors and issuers depository certificates in foreign countries shall open a securities depository account in accordance with the law on registration, depository, and compensation. deduction and settlement of securities transactions.
Regulating on obligations of foreign investors and trading representatives of foreign investors in investment activities on the Vietnamese stock market.
Regulating the activities of depository members, clearing members, securities companies, securities investment fund management companies, branches of foreign fund management companies in Vietnam, issuers depository certificates in foreign countries, economic organizations with foreign investors holding more than 50% of charter capital (instead of 51% as before).
In addition to the obligation to declare, pay and finalize taxes and fees according to Vietnamese law, to ensure that transactions are not aimed at creating artificial supply and demand, or manipulating securities prices, foreign investors must also oblige to report ownership and disclose information about securities transactions in accordance with the law on information disclosure on the stock market.
For further information, please contact: Minh Ngo Nhat, Managing Partner, BLawyers email@example.com