VietNamNet Bridge - The State Securities Commission (SSC) has confirmed that only three securities companies have accepted a foreign ownership ratio of more than 49 percent.

On September 1, securities companies wanting to raise the foreign ownership ratio were allowed to register with SSC. 

Decree No 60 permits no limitation on foreign ownership applied to securities companies. 

Currently, they only have two choices – either holding less than 49 percent or 100 percent.

The source from SSC said after Decree No 60 dated June 26 was released and took effect on September 1, one company registered to raise the foreign ownership ratio – the Saigon Securities Incorporated (SSI) – and it received SSC’s approval.

Though the room offered foreign investors is up to 100 percent, the real foreign ownership ratio in SSI by September 23 was 48 percent only.

The other two securities companies which have foreign ownership ratios at over 49 percent include Maybank Kim Eng, a 100 percent Malaysian invested company and KIS Vietnam, of which Korea Investment Securities Co Ltd (KIS) holds 92 percent of stake.

The source from SSC went on to say that Nam An Securities Company’s shareholders have been allowed to transfer 100 percent of capital to Shinhan Investment Corporation, an investor from South Korea. 

However, as the procedures have not been fulfilled, the company still cannot shift to a 100 percent foreign owned limited company.

The IBSC’s shareholders’ meeting on September 21 approved the amendment of the company’s chapter, under which foreign investors would be allowed to hold up to 100 percent of the company’s stake.

However, the source said SSC has not received the application from IBSC.

Commenting about the securities companies’ capacity to attract more foreign capital, the director of a foreign investment fund said big securities companies which provide wide ranges of services would have greater opportunities. 

He said that changes in foreign ownership ratios would also be made at the companies where foreign investors hold nearly 49 percent of stake. 

“Foreign investors would pour more capital into the companies to raise their ownership ratios so as to obtain greater power in the companies,” he explained.

There are about 90 operational securities companies in Vietnam, including 40 foreign invested companies. Of these, three companies offer more than 49 percent of a stake to foreign investors. Eight companies have foreign ownership ratios of up to 49 percent. They are most likely to extend room for foreigners.

TBKTSG