Which securities companies are allowed to operate in the International Financial Center?

Securities companies wishing to be licensed to operate in the International Financial Center in Vietnam must comply with regulations.

The draft Decree regulating financial policies in the International Financial Center in Vietnam is being consulted by the Ministry of Finance . Accordingly, the conditions for granting a license to establish and operate a securities business organization as a member of the International Financial Center must meet a number of conditions. That is, the domestic securities company must have a minimum contributed charter capital and equity capital of VND 5,000 billion; the ratio of available capital continuously in the last 3 months and after contributing capital to establish a presence must reach at least 300%.

Only securities companies with a minimum charter capital of over VND5,000 billion are allowed to operate at the International Financial Center.

PHOTO: NHAT THINH

In particular, foreign securities trading organizations must have equity capital according to the latest audited financial report of at least 190 million USD (about 5,000 billion VND); be licensed or registered with the competent authority in the securities field in the home country; the competent authority in the securities field of the home country is an official member of IOSCO - International Organization of Securities Commissions.

In addition to the above conditions, both domestic and foreign securities companies must have a period of continuous operation, no accumulated losses, profitable business according to audited financial statements in the previous 2 years; ensure conditions on capital, facilities and human resources of the securities business organization...

Currently, Decree 155/2020 of the Government stipulates the minimum charter capital for the business operations of securities companies in Vietnam as follows: Securities brokerage is 25 billion VND; securities trading is 50 billion VND; securities underwriting is 165 billion VND; securities investment consulting is 10 billion VND. Organizations requesting licenses for many business operations, the minimum charter capital is the total capital corresponding to each business operation for which a license is requested. Therefore, securities companies wishing to be licensed to operate all operations must have a charter capital of 250 billion VND or more.

Thus, according to the proposal, to operate at the International Financial Center, securities companies must have a charter capital 20 times higher than the current regulations. So which securities companies can meet the conditions to participate in opening a trading floor at the International Financial Center? It is estimated that there are more than 10 securities companies with charter capital of over VND 5,000 billion. Recently, Techcom Securities Company in June completed a private share issuance, raising its charter capital to VND 20,802 billion - the company with the highest charter capital in the stock market. Next is SSI with a charter capital of about VND 19,700 billion; VIX VND 15,314 billion; VNDirect VND 15,223 billion; VPBankS VND 15,000 billion; ACBS VND 11,000 billion; SHS nearly VND 8,945 billion; HSC 7,208 billion VND; Mirae Asset reached nearly 6,591 billion VND...

Source: https://thanhnien.vn/cong-ty-chung-khoan-nao-duoc-hoat-dong-trong-trung-tam-tai-chinh-quoc-te-185250917095339814.htm