Circular 51/2021/TT-BTC guiding obligations in the foreign investment activities on securities market
Foreign investors' trading representatives must not directly make investment decisions until receiving trading orders
The Circular No. 51/2021/TT-BTC guiding obligations of organizations and individuals in the foreign investment activities on Vietnam securities market is promulgated by the Ministry of Finance on June 30, 2021.
According to the Circular, foreign investors, their trading representatives must ensure that investment transactions in the Vietnam’s securities market and transactions conducted by affiliated persons and groups of affiliated foreign investors are not aimed at creating sham supply or demand, manipulating securities prices and other prohibited trading acts prescribed by law regulations.
When conducting transactions for foreign investors, trading representatives of such foreign investors shall strictly follow trading and payment directions of foreign investors, and refrain from directly making investment decisions, including selection of securities type, amount, price and trading time, until they receive trading orders and investment directions of foreign investors.
Additionally, in case they provide services or participate in securities auctions as authorized by foreign investors, securities companies must separate trading orders and investment directions of foreign investors from those of domestic investors (if any) and their own ones, ensuring the observance of the law regulations on the rate of foreign holding in Vietnamese enterprises.
This Circular takes effect on August 16, 2021.
For further details of the Circular 51/2021/TT-BTC, Click here
translation of the Official Gazette of the Vietnam News Agency
THE MINISTRY OF FINANCE
THE SOCIALIST REPUBLIC OF VIETNAM
Independence – Freedom – Happiness
Hanoi, June 30, 2021
Guiding obligations of organizations and individuals in the foreign investment activities on Vietnam securities market
Pursuant to the Law on Securities dated November 26, 2019;
Pursuant to the Government’s Decree No. 155/2020/ND-CP dated December 31, 2020 on detailing and guiding the implementation of a number of articles of the Law on Securities;
Pursuant to the Government’s Decree No. 87/2017/ND-CP dated July 26, 2017, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;
At the proposal of the Chairman of the State Securities Commission;
The Minister of Finance promulgates the Circular guiding obligations of organizations and individuals in the foreign investment activities on Vietnam’s securities market.
Article 1. Scope of regulation and subjects of application
1. This Circular guides the implementation of Clause 6, Article 138 of the Government’s Decree No. 155/2020/ND-CP dated December 31, 2020 detailing the implementation of a number of articles of the Law on Securities (hereinafter referred to as the Decree No. 155/2020/ND-CP) on obligations of foreign investors, organizations providing services to foreign investors and other relevant organizations and individuals in foreign investors’ investment activities on Vietnam’s securities market.
2. Subjects of application:
a) Foreign investors, group of affiliated foreign investors;
b) Depository members, clearing members, securities companies, securities investment fund management companies, Vietnam-based branches of foreign fund management companies, organizations issuing depositary receipts in other countries, economic organizations of which over 50% of charter capital is held by foreign investors;
c) The Vietnam Securities Depository and Clearing Corporation, the Vietnam Stock Exchange and its subsidiary companies;
d) Other relevant agencies, organizations and individuals.
Article 2. Interpretation of terms
In this Circular, the terms below are construed as follows:
1. Valid copy means a copy issued from the master register or copy certified as true copy by a competent agency or organization, or copy proved to match its original after comparison.
2. Competent representatives of foreign organizations mean:
a) Chairperson of the Board of Directors, chairperson of the Members’ Council, Chief Executive Officers, corporate secretary or owner of the foreign organization;