What is the application for license for establishment and securities operation of securities companies in Vietnam?
What is the minimum charter capital of securities companies in Vietnam?
Pursuant to Article 175 of Decree 155/2020/ND-CP stipulating the minimum charter capital of securities companies.
According to that, the minimum charter capital of a securities companies applies to each securities business operation of the company, specifically as follows:
Minimum charter capital
1. Minimum charter capital for securities business operations of securities companies in Vietnam:
a) Securities brokerage: 25 billion VND;
b) Proprietary trading: 50 billion VND;
c) Securities underwriting: 165 billion VND;
d) Securities investment counseling: 10 billion VND.
2. Minimum capital provided for the branch in Vietnam of a foreign securities company is 10 billion VND.
3. The minimum charter capital of a fund management company, minimum capital provided for the branch in Vietnam of a foreign fund management company is 25 billion VND.
4. In case an organization registers more than one operation, the minimum charter capital shall be the sum of the minimum charter capital of each operation registered.
According to the above regulations, the minimum charter capital for securities business operations of securities companies in Vietnam:
- Securities brokerage: 25 billion VND;
- Proprietary trading: 50 billion VND;
- Securities underwriting: 165 billion VND;
- Securities investment counseling: 10 billion VND.
- Minimum capital provided for the branch in Vietnam of a foreign securities company is 10 billion VND.
- The minimum charter capital of a fund management company, minimum capital provided for the branch in Vietnam of a foreign fund management company is 25 billion VND.
What is the application for license for establishment and securities operation of securities companies in Vietnam?
What is the application for license for establishment and securities operation of securities companies in Vietnam?
To apply for a license for establishment and securities operation, the company needs to prepare the documents as prescribed in Article 176 of Decree 155/2020/ND-CP, specifically as follows:
- The application form.
- The written agreement on establishment of the company of the shareholders, contributing members or the decision of the company owner which specifies: the company’s name (full name, business name in Vietnamese and English, abbreviated name), headquarters address; business operations; charter capital; ownership structure; approval of the draft charter of the company; the legal representative cum authorized representative who completes the company establishment procedures.
- The premises lease contract; documents proving the right to own or use the premises; description of property according to Form No. 65 in the Appendix hereof.
- The list of personnel, personal information sheets according to Form No. 66 and Form No. 67 in the Appendix hereof enclosed with the judicial records of members of the Board of Directors, President of the Member assembly, President of the company; General Director/Director that are issued within 06 months before the application is submitted.
- The list of shareholders and contributing members according to form No. 68 in the Appendix enclosed with Decree 155/2020/ND-CP and:
+ For individuals: the personal information sheet according to Form No. 67 in the Appendix enclosed with Decree 155/2020/ND-CP; judicial records issued within 06 months before the application is submitted of the founding shareholders and members that are individuals who contribute more than 5% of charter capital;
+ For organizations: the Certificate of Enterprise Registration or an equivalent document; the company's charter; the decision issued by a competent authority according to the company's charter on contribution of capital to establish the company and appointment of the authorized representative; the authorized representative’s personal information sheet according to Form No. 67 in the Appendix enclosed with Decree 155/2020/ND-CP; the audited financial statements of the last 02 years preceding the year in which the license is applied for of the contributing organizations. The contributing organization that is the parent company shall also include the audited consolidated financial statement; the written approval issued by SBV (for commercial banks) or by the Ministry of Finance (for insurers) for the contribution of capital to establish the company (if any);
+ The written declarations of the organizations and individuals of fulfillment of the requirements specified in Point c Clause 2 Article 74 and Point c Clause 2 Article 75 of the 2019 Law on Securities.
- The decision issued by a competent authority on operational, internal control, risk management processes.
- The draft charter of the company.
- The application for replacement of the license in the case specified in Clause 2 Article 135 of the 2019 Law on Securities shall include the application form mentioned in Clause 1 of this Article, the original copy of the establishment and operation license and the revised licenses that were previously issued.
What behaviors are strictly prohibited in securities activities?
Pursuant to Article 12 of the 2019 Law on Securities in Vietnam stipulating securities-related offences as follows:
- Direct or indirect commission of frauds, forgery of documents, provision or disclosure of false information to conceal true information or omit necessary information in a manner that causes misunderstanding, adversely affects the offering, listing, trading, investment of securities and provision of securities-related services.
- Use of internal information to buy or sell securities to oneself or another person; revelation or provision of internal information; advising another person to buy or sell securities based on internal information.
- Use of one or several accounts of oneself or another person, trading securities in a manner that creates artificial demand or supply; collaborating with another person in trading securities to manipulate securities prices; use of other methods, with or without false information, to manipulate securities prices.
- Engaging in securities trade or provision of securities-related services without a license, certification or approval from SSC.
- Use of a client’s account or asset without the client’s authorization or against the law; abuse of trust to appropriate a client’s assets.
- Allowing another person to borrow the account to trade securities, hold securities in the name of another person for the purpose of manipulating securities prices.
- Organizing the securities market against regulations of this Law.
LawNet
