Foreign investors may not need to deposit when buying securities.

The State Securities Commission is seeking comments on the Draft amending and supplementing a number of articles of Circular No. 120/2020 dated December 31, 2020 of the Ministry of Finance regulating the trading of listed stocks, registration of trading and fund certificates, corporate bonds, and listed warrants on the securities trading system. The Circular will supplement regulations related to the deposit of 100% of money by foreign institutional investors when purchasing securities.

Remove the 100% deposit requirement for foreign institutional investors when purchasing securities.

Specifically, the securities company is allowed to receive securities purchase orders from foreign institutional investors when the customer's account does not have 100% of the order value. The securities company conducts an assessment of the customer's capacity to determine the margin level according to the agreement in the contract signed between the securities company and the customer.

In case the foreign investor lacks payment, the securities company will be responsible for paying the shortfall through the proprietary account, except for the case of regulations related to the custodian bank where the foreign institutional investor opens an account. The securities company must ensure sufficient capital for payment, in case of insolvency, it will be handled for violations according to regulations.

Create conditions for foreign investors to buy securities

The securities company sells the securities as soon as they are in its own trading account. The difference arising from the handling of this case is made according to the agreement in the contract between the securities company and the customer.

The depository bank where a foreign institutional investor opens a securities depository account is responsible for paying the shortfall in case of incorrect confirmation of the customer's deposit balance with the securities company, leading to a shortage of money to pay for securities transactions.

In case it is necessary to stabilize the market, the State Securities Commission has the right to temporarily suspend 100% non-margin trading services of foreign institutional investors.

Removing the requirement for 100% margin when buying securities for foreign institutional investors is considered one of the preparations to upgrade the Vietnamese stock market and attract foreign investment capital.

The draft also adds regulations that listed companies and large public companies must periodically disclose information in English from January 1, 2025; disclose extraordinary and on-demand information in English from January 1, 2026. Then, from January 1, 2027, other public companies must periodically disclose information in English; disclose extraordinary and on-demand information in English from January 1, 2028.

Source: https://thanhnien.vn/nha-dau-tu-ngoai-co-the-khong-can-ky-quy-khi-mua-chung-khoan-185240321091809584.htm