Foreign investors and representatives of foreign investors must ensure investment transactions on the Vietnamese stock market meet legal requirements. — Photo vneconomy.vn
HÀ NỘI — The Ministry of Finance has issued a circular providing guidelines on the obligations of organisations and individuals in foreign investment activities on Vietnamese securities markets.
The circular will take effect 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 the Vietnamese stock market, and those performed by related persons and groups of related foreign investors, are not intended to create unreal supply and demand, manipulate securities prices, or in breach prohibited trading acts as prescribed by law.
Foreign investors and foreign depository certificate issuers shall be obliged to declare, pay and settle taxes, fees, charges, and service prices related to securities activity in Việt Nam in line with the provisions of Vietnamese law.
In addition, foreign investors must fulfil their obligation to report ownership and disclose information about securities transactions according to the law on information disclosure on the stock market.
The circular also clearly stipulates obligations in providing services for foreign investors. Accordingly, securities companies, securities investment fund management companies, branches of foreign fund management companies in Việt Nam, and economic organisations in which foreign investors holding more than 50 per cent of charter capital when providing services for foreign investors, must ensure full compliance with legal regulations on securities and stock market trading.
When providing services and participating in securities auctions as authorised by foreign investors, securities companies, and securities investment fund management companies, branches of foreign fund management companies in Việt Nam must separate trading orders and the investment instructions for foreign investors from investment instructions for domestic investors (if any) and their own.
They must ensure compliance with legal regulations on the rate of foreign ownership in Vietnamese enterprises and take responsibility for the fair and reasonable allocation of assets to each customer following the signed contract. — VNS