國際外語領隊導遊、日本通譯案內士考、99種語言、99國留學

GUIDE ON TRADING SECURITIES TO FOREIGN INVESTOR

IN THE STOCK MARKET

(Hochiminh Securities Trading Center)

 I.      Securities trading procedures:

q       Individual investor:

Documents required:    01 application for registration of securities trading code signed by the individual investor,

01 information sheet about foreign individual investor (verified by signed and stamped with seal by the authorized agency in the home country or by the Consulate in Vietnam.

q       Institutional investor:

Documents required:    01 application for registration of securities trading code signed by the institutional investor,

01 information sheet about foreign institutional investor (verified by signed and stamped with seal by the Notary Public or appropriate authorities in the home country,

01 information on the delegated person of the institutional investor (verified by signed and stamped with seal by the Notary Public in the home country or by an authorized body of the institution itself),

01 Notarized copy of Incorporation Certificate in the home country

01 The mandate of the institution’s Board of Directors appointing the delegated person as the representative of and contact point for the institution.

*    Investment fund require more documents:

01 copy of charter of investment fund, 01 copy of charter of management fund (if nay) and Financial Statement of the latest two years.

Documents required:    01 application for opening Vietnamese Dong  and  Securities Depository account with Saigon Securities Incorporation (SSI).

                                    02 Account opening contract.

Documents required:    The instruction of remittance

Documents required:    Order tickets (Sale, Purchase and Cancellation)

II.      Rules of trading:

1.      Trading days:

q       From Monday to Friday (except holidays)

q       Trading sessions in one day:

1^st trading session: 9:00 to 9:20 am (matching at 9:20 am)

2^nd trading session: 10:00 to 10:30 am (matching at 10:30 am)

3^rd trading session: 10:30 to 11:00 am (closing at 11:00 am)

1. Trading band: ± 5% against the closing price

3.      Unit price:

q       Matching deal:

q       Negotiaed deal: Unit price is not applied.

1. Securities unit for trading

q       1 lot of stock or investment certificate: 10 unit.

q       1 lot of bond: 10 unit.

q       Face value of stock or investment certificate: VND 10,000.

q       Face value of bond: VND 100,000.

q       Matching deal:

v     Stock or investment certificate: from 10 to 9,990 unit.

v     Bond: from 10 to 2,990 unit.

q       Negotiaed deal:

v     Stock or investment certificate: ³ 10,000 unit.

v     Bond: ³ 3,000 unit.

1. Types of order:

q       Limit order

q       At the opening Order (ATO)

1. Settlement day: T+3

 III.      Foreign Exchange Regulations:

With reference to decision No 1550/2004/QD-NHNN of the Governor of State Bank of Viet Nam dated Dec 06, 2004 regarding of the foreign exchange control for the purchase, sale of securities by foreign investors in the Stock Exchange:

Article 3. Currency used in the purchase, sale of securities

Within the territory of Vietnam, the purchase, sale of securities by foreign investors shall be made in Vietnam Dong.

Article 4. Source of capital used in the purchase of securities

Foreign investors shall be entitled to use following sources in foreign currency and in Vietnam Dong to purchase securities:

1.      Foreign currency remitted from abroad into Vietnam in accordance with current provisions on foreign exchange control;

2.      Foreign currency and Vietnam Dong on the foreign investors’ accounts, which are maintained at authorized banks;

3.      Vietnam Dong on the accounts “capital contribution, share purchase” of foreign investors opened at commercial banks in Vietnam in accordance with the State Bank’s provisions on the foreign exchange control applicable to the capital contribution, share purchase by foreign investors in Vietnamese enterprises;

4.      Distributed profits of foreign investors from their direct investment activities in Vietnam;

5.      Receipt of foreign investors from the transfer, liquidation, dissolution of their direct investment activities in Vietnam in accordance with provisions of applicable laws;

6.      Salaries, bonus and other legal incomes of foreign individuals in Vietnam in accordance with provisions of applicable laws;

7.      Other sources if accepted by the State Bank.

Article 5. Capital remittance into and out of Vietnam

1.      If foreign investors wish to use their foreign currency, remitted from abroad or maintained on their accounts “foreign currency” at the authorized banks in Vietnam in accordance with provisions of applicable laws on foreign exchange control, for securities investment, they must transfer their foreign currency to the account “foreign currency demand deposits for special purposes” of the securities company opened at the authorized bank in accordance with provisions in this Decision. They must sell foreign currency to the authorized bank to exchange for Vietnamese Dong for securities purchase.

2. After having fulfilled their tax obligations to the State of Vietnam in accordance with provisions of applicable laws, foreign investors shall be entitled to purchase foreign currency at authorized banks to remit overseas in accordance with provisions of applicable laws on foreign exchange control.

Article 6. Opening of account “securities transactions in VND” of foreign investors at the Securities Company

1. Foreign investors shall open the account “securities transactions in VND” at a securities company for the sake of their securities purchase, sale activities at the Stock Exchange in accordance with provisions of applicable laws on securities and securities market.

2. The Securities Company shall manage separately the securities transaction deposits of each foreign investor and separate the securities transaction deposits of foreign investors and its own money. The whole deposits of foreign investors must be transferred into the account “VND deposits for special purposes” of the Securities Company opened at an authorized bank under provisions in Article 7 of this Decision. All transactions of money transfer, payment relating to the securities investment activities of the foreign investors shall be performed through this account at the authorized bank.

Article 7. Opening and use of the account “VND demand deposits for special purposes” and the account “foreign currency demand deposits for special purposes” of the securities company at the authorized bank

The securities company must open one (01) account “VND demand deposits for special purposes” and one (01) account “foreign currency demand deposits for special purposes” at an (01) authorized bank for the maintenance of the entire securities transaction deposits of foreign investors.

1. Account “VND demand deposits for special purposes”

Receipts:

a. Receipts from the sale of foreign currency on the account “foreign currency demand deposits for special purposes” of the securities company for the sake of securities investment activity under the authorization of the foreign investor;

b. Receipts from money transfer of VND sources of the foreign investor as stated in paragraph 2, 3, 4, 5, 6 and 7, Article 4 of this Decision;

c. Receipts from the sale of securities, from the receipt of dividends, bonds interests and other relevant receipts arising from the purchase, sale of securities under the authorization of the foreign investor;

Payments:

a. Payment for the purchase of securities being in circulation at the Stock Exchange in Vietnam under the authorization of the foreign investor;

b. Payment for the transfer to the account “capital contribution, VND share purchase ” of the foreign investor for the capital contribution, purchase of shares in Vietnamese enterprises;

c. Payment for the spending of the foreign investor in Vietnam, which are made from  dividends income, bonds interests gained from his securities investment activity.

d. Payment for the purchase of foreign currency to remit overseas under the authorization of the foreign investor.

2. Account “foreign currency demand deposits for special purposes”

Receipts:

a. Receipt from the money transfer from abroad into Vietnam under the authorization of the foreign investor;

b. Receipts from the money transfer from the account “foreign currency” of the foreign investor opened at an authorized bank in Vietnam.

Payments:

a. Payment for the sale of foreign currency to the authorized bank where the account “foreign currency” is opened for VND to transfer to the account “VND deposits for special purposes” of the securities company for the sake of the securities investment activity under the authorization of the foreign investor;

b. Payment for the overseas remittance under the authorization of the foreign investor.

IV.      Tax regulations:

The capital gain tax:

By organization: pay income tax of whole transacted amount of 0.1%

By individual: It is free of tax

V.      The ratio of foreign party participating in the Vietnam Stock Market (Decision No 146/2003/QD-TTg of the Prime Minister)

1.      For Shares:

Foreign organizations and individuals may hold at maximum 30% of the total currently circulated shares of one issuing organization.

2.   For Bonds:

            No limitation ratio of holding bonds for foreign organizations and individuals.