This content is regulated in Circular No. 10/2016/TT-NHNN dated June 29, 2016 of the State Bank of Vietnam guiding a certain contents of the Decree No. 135/2015/ND-CP dated December 31, 2015 of the Government on prescribing offshore indirect investment.
According to this Circular, the safe investment ratio of a proprietary trader that is a commercial bank or general financial company is 7% of its equity capital, excluding investments and business activities of its branches in foreign nations. The activities of outward portfolio investments by commercial banks and general financial companies shall not exceed that safe investment ratio. In case of excess of the safe investment ratio due to reduction of equity capital, commercial banks and general financial companies shall report to the State Bank; implement necessary measures for increasing equity capital; suspend the transfer of capital for outward portfolio investments according to the annual limit of which the registration has been certified by the State Bank.
Besides, this Decree also have specific regulation on program awarding shares issued in foreign nations, within allowed Vietnamese employees working in foreign organizations in Vietnam to make outward portfolio investments by participating in a program awarding shares issued in foreign nations. In this case, Vietnamese employees are allowed to sell awarded shares in foreign nations; receive dividends and other lawful incomes through the share awarding program-executing organization…
This Circular takes effect on August 13, 2016.
