Hanoi(VNA) – The Ministry of Finance has issued a circular providing guidelines on obligationsof organisations and individuals in foreign investment activities on the Vietnamese securities market.
Under Circular No.51/2021/TT-BTC issued on June 30, 2021, foreign investors and representatives of foreign investors must ensure investment transactions on theVietnamese stock market and those performed by related persons and groupsof related foreign investors are not intended to create unreal supply anddemand, manipulate securities prices, together with other prohibited trading acts asprescribed by law.
Foreign investorsand foreign depository certificate issuers shall be obliged to declare, pay and settle taxes, fees, charges, and service prices related to securitiesactivities in Vietnam in line with the provisions of Vietnamese law.
In addition, foreign investors and groups of related foreigninvestors must fulfill the obligation to report ownership and discloseinformation about securities transactions according to the law on informationdisclosure on the stock market.
Besides, the circular clearly stipulates obligations inproviding services for foreign investors. Accordingly, securities companies,securities investment fund management companies, branches of foreign fundmanagement companies in Vietnam, economic organisations with foreign investorsholding more than 50 percent of charter capital, when providing services for foreign investors, must ensure full compliance with legal regulations onsecurities and stock market.
When providing services and participating in securities auctions as authorised by foreign investors,securities companies, securities investment fund management companies, branchesof foreign fund management companies in Vietnam must separate trading ordersand investment instructions of foreign investors from trading orders andinvestment instructions of domestic investors (if any) and their own, ensure compliancewith legal regulations on the rate of foreign ownership in Vietnameseenterprises, and take responsible for a fair and reasonable allocation ofassets to each customer following the signed contract.
The circular will takeeffect on August 16, 2021./.
Under Circular No.51/2021/TT-BTC issued on June 30, 2021, foreign investors and representatives of foreign investors must ensure investment transactions on theVietnamese stock market and those performed by related persons and groupsof related foreign investors are not intended to create unreal supply anddemand, manipulate securities prices, together with other prohibited trading acts asprescribed by law.
Foreign investorsand foreign depository certificate issuers shall be obliged to declare, pay and settle taxes, fees, charges, and service prices related to securitiesactivities in Vietnam in line with the provisions of Vietnamese law.
In addition, foreign investors and groups of related foreigninvestors must fulfill the obligation to report ownership and discloseinformation about securities transactions according to the law on informationdisclosure on the stock market.
Besides, the circular clearly stipulates obligations inproviding services for foreign investors. Accordingly, securities companies,securities investment fund management companies, branches of foreign fundmanagement companies in Vietnam, economic organisations with foreign investorsholding more than 50 percent of charter capital, when providing services for foreign investors, must ensure full compliance with legal regulations onsecurities and stock market.
When providing services and participating in securities auctions as authorised by foreign investors,securities companies, securities investment fund management companies, branchesof foreign fund management companies in Vietnam must separate trading ordersand investment instructions of foreign investors from trading orders andinvestment instructions of domestic investors (if any) and their own, ensure compliancewith legal regulations on the rate of foreign ownership in Vietnameseenterprises, and take responsible for a fair and reasonable allocation ofassets to each customer following the signed contract.
The circular will takeeffect on August 16, 2021./.
VNA
