VietNamNet Bridge – Circular No 213/2012/TT-BTC has been issued
by the Ministry of Finance to regulate the participation of foreign investors
in the securities market.
Under the circular, it will be
easier for foreign investors to open securities trading accounts. Individual
foreign investors will no longer be required to submit judicial background
records, only a notarised copy of a valid passport or other identification.
Documents which are granted by the authorities in the investor's country of
origin can be notarised and certified under foreign law and given consular
certification under Vietnamese law.
Circular No 213 will also shorten
the time needed for securities trading codes to be issued. The Viet Nam
Securities Depository Centre will grant securities trading codes within five
days for institutional investors and three days for individual investors from
the date of completely receipt dossiers.
The Circular also stipulates that
codes may be still granted to foreign investors with insufficient
documentation, and the codes will remain active for up to nine months until the
foreign investor can submit the documents needed to complete their dossiers. To
increase the transparency of the domestic stock market, the circular also
includes provisions on disclosure requirements for foreign investors. The
Circular takes effect on 15 February 15, replacing Decision No 121/2008/QD-BTC
of December 2008.
New provisions on
foreign-invested fund management firms
Decree No 58/2012/ND-CP issued
last July has helped pave the way for incorporation of wholly foreign invested
securities companies, including fund management companies.
Circular No 212/2012/TT-BTC, issued
by the Ministry of Finance on December 5, elaborates on the provisions of the
decree relating to fund management companies. Under Circular No 212, the
qualifications and financial requirements for foreign investors to incorporate
a fund management company remain the same as regulated under Decree No 58.
The application for a licence to
establish such a company, either domestic or foreign-invested, would be
required to include: (i) an application form; (ii) minutes and resolution of a
meeting of shareholders or stakeholders approving the establishment of the fund
management company; (iii) a proposed charter for the company; (iv) a memorandum
of understanding for the leasing of a head office; (v) a business plan for
first three years; (vi) documentary evidence of the financial capacity of
investors; and (v) a list in statutory form of all the shareholders, board of
management and control board members, and principal management staff.
Within 20 days upon the
submission of the application, the State Securities Commission will be required
to issue a notice in lieu of the "in-principal approval" provided for
under Decision 35/2007/QD-BTC. The applicant would have three months to correct
any deficiencies in the application dossier. Thereafter, the commission would
issue the licence with seven days. Circular No 212 takes effect on March 1 and
replaces Decision No 35/2007/QD-BTC and Decision No 125/2008/QD-BTC. —
BIZCONSULT
Source: VNS
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