Why does VNDirect have to pay tens of billions of dong to buy shares for foreign investors?

Foreign investors from Singapore failed to pay on time for the purchase of MWG and MBB shares. VNDirect Securities was responsible for the payment.

VNDirect has just been knocked out of the top 6 in the stock market share rankings for the third quarter of 2025 - Photo: VND

VNDirect Securities Joint Stock Company (VND) has just reported that foreign institutional investors did not make payments within the prescribed time limit.

Specifically, in a report sent to the Securities Commission, VND said that on October 7, United Sustainable Asia Top - 50 Fund (Singapore) placed a purchase order and matched orders for two stock codes.

Among them, there was an order for 66,300 MWG shares with a matching value of more than VND5.2 billion and an order for 362,900 MBB shares with a matching value of more than VND9.8 billion. In total, the above two transactions required payment of more than VND15 billion.

However, the Singaporean organization failed to pay on time as required. VNDirect Securities was responsible for the payment.

Previously, Circular 68 on securities, effective from the end of 2024, removed the condition that foreign investors must deposit 100% before trading, paving the way for upgrading the Vietnamese stock market.

Previously, foreign investors had to transfer enough money before placing an order to buy securities. Even if they could not buy, they still had to pay the fee to transfer money from abroad to Vietnam and vice versa.

International rating organizations assess this as a barrier to foreign capital flows into Vietnam and recommend that Vietnam should remove it to speed up the process of upgrading its stock market.

After two public consultations and finalization, the Ministry of Finance issued a circular amending and supplementing this provision.

Accordingly, foreign investors buying stocks do not require sufficient funds when placing orders. However, it should be noted that this only applies to foreign institutional investors, not to individuals.

The Circular clearly states that securities companies shall assess the payment risk of foreign institutional investors to determine the amount of money required when placing an order to buy shares according to the agreement between the two parties. In case the investor fails to pay the full amount after the transaction, the payment obligation belongs to the securities company where they placed the order.

Since the official application of Non-prefunding, VNDirect is the second securities company to announce an unsuccessful transaction of a foreign institutional investor.

In mid-December last year, Vietcap Securities Joint Stock Company (VCI) had to pay nearly 4 billion VND to buy 26,600FPT shares from Aegon Custody BV (Netherlands).

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BINH KHANH

Source: https://tuoitre.vn/vi-sao-vndirect-phai-tra-thay-hang-chuc-ti-dong-mua-co-phieu-cho-nha-dau-tu-ngoai-20251011154620057.htm