The Ministry of Finance has issued a circular providing guidelines on obligations of 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 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, together with other 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 activities in Vietnam in line with the provisions of Vietnamese law.
In addition, foreign investors and groups of related foreign investors must fulfill the obligation to report ownership and disclose information about securities transactions according to the law on information disclosure on the stock market.
Besides, the circular clearly stipulates obligations in providing services for foreign investors. Accordingly, securities companies, securities investment fund management companies, branches of foreign fund management companies in Vietnam, economic organisations with foreign investors holding more than 50 percent of charter capital, when providing services for foreign investors, must ensure full compliance with legal regulations on securities and stock market.
When providing services and participating in securities auctions as authorised by foreign investors, securities companies, securities investment fund management companies, branches of foreign fund management companies in Vietnam must separate trading orders and investment instructions of foreign investors from trading orders and investment instructions of domestic investors (if any) and their own, ensure compliance with legal regulations on the rate of foreign ownership in Vietnamese enterprises, and take responsible for a fair and reasonable allocation of assets to each customer following the signed contract.
The circular will take effect on August 16, 2021.
The stock market has been witnessing unprecedented cash inflow so far this year, even though the Covid-19 pandemic has become more complicated in Southeast Asia.
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