Instructions for Registration of Securities Trading Codes of Foreign Investors

22/09/2020, 05:40 AM

The Ministry of Finance is drafting a Circular providing guidance on the registration of securities trading codes and the obligation to carry out foreign investment activities on Vietnam's stock market.

According to the draft, a foreign investor's application file for securities trading code registration comprises: A securities transaction code registration form according to a form; a document authorizing depository members to register securities trading codes; investor identification documents.

The procedure is as follows:

  1. Foreign investors, foreign-invested economic organizations shall submit a complete set of valid dossiers as prescribed to depository members;
  2. Depository members shall verify foreign investors' application for registration of securities trading codes and declare information as prescribed in Appendix 1 to this Circular on the code registration system. the number of online securities transactions of Vietnam Securities Depository and Clearing Corporation;
  3. Within 01 working day from the date of receipt of information declared by a depository member, the Vietnam Securities Depository and Clearing Group shall issue and electronically certify securities trading codes to the home. Foreign investment on the online securities trading code registration system. In case of refusal, the Vietnam Securities Depository and Clearing Corporation shall reply in the system clearly stating the reason;
  4. Within 05 working days after obtaining the electronic confirmation of the securities trading code, a depository member shall submit, in person or by post, the complete application set to the Deposit and Compensation Corporation. except for Vietnamese securities to review and archive;
  5. Within 05 working days from the date of receipt of complete documents as prescribed, the Vietnam Securities Depository and Clearance Corporation shall issue the certificate of securities trading code registration to the investor. foreign countries, economic organizations with foreign investment.

The draft also stated that foreign investors are not considered for securities trading codes in the following cases: Being investigated or having been subjected by a domestic or foreign regulatory authority for the prohibited acts under the provisions of the securities law, the money laundering acts or the violations and the administrative and criminal penalties in the fields of finance, banking, foreign exchange and tax management which has not yet expired is considered as having not been handled for administrative violations or not implementing fully decisions on sanctioning such administrative violations.

Source: Bao Chinh Phu