On June 30, 2021, The Ministry of Finance issued Circular 51/2021/TT-BTC Guiding the obligations of organizations and individuals in foreign investment activities on the Vietnamese stock market.
Circular 51/2021/BT-BTC has the following relevant amendments:
1. Adjusting regulated entity
Economic organizations with foreign investors holding more than 50% of charter capital instead of 51% or more of charter capital as current regulations.
2. Each issuer of depositary receipts in a foreign country has to open an Indirect investment capital account
Each issuer of depositary receipts in a foreign country shall be allowed to open 01 indirect investment capital account at 01 custodian bank obtaining the license for foreign exchange trading in order to issue or cancel depositary receipts and perform other relevant activities.
3. Foreign investors and groups of affiliated foreign investors shall submit reports on their ownership and disclose information about their securities transactions
The foreign investor shall itself/himself/herself fulfill, or appoint 01 depository member, securities company or fund management company or its representative office (if any) or another organization, or authorize an individual to fulfill the obligations to submit reports on ownership and disclose information.
The group of affiliated foreign investors shall appoint 01 depository member, securities company or fund management company or its representative office (if any) or another organization, or authorize an individual to fulfill the obligations to submit reports on ownership and disclose information.
Depository members shall submit monthly reports to SSC on depository accounts and portfolios of foreign investors and issuers of depositary receipts in foreign countries. The depository members that are branches of foreign credit institutions or wholly foreign-owned credit institutions established in Vietnam must also provide reports on their investment activities and investment portfolios.
Securities companies, fund management companies and branches of foreign fund management companies in Vietnam shall provide monthly reports to SSC on management of investment portfolios and investments for foreign investors.
Monthly reports shall be submitted within 05 working days from the end of the reporting month.
4. Adjusting obligations to provide services for foreign investors
In the case of managing a trading account for an individual foreign investor, the securities company can now make investment decisions on behalf of the client.
Circular 51/2021/TT-BTC takes effect from August 16, 2021 and replaces Circular No. 123/2015/TT-BTC dated August 18, 2015.
