What are conditions for a securities company to be licensed to perform securities underwriting in Vietnam?

What are conditions for a securities company to be licensed to perform securities underwriting in Vietnam?

In the near future, we will register to establish a securities company according to the joint stock company model. When registering to establish a joint stock company, we will also apply for a license to operate securities brokerage, proprietary trading and securities underwriting? Ask for help!

Reply:

Pursuant to Article 72 of the Securities Law 2019, it is stipulated that a securities company shall be licensed to perform one, some or all of the following operations:

a) Securities brokerage;

b) Proprietary trading;

c) Securities underwriting;

d) Securities investment consultancy.

2. A securities company shall only be licensed for proprietary trading when it is licensed for securities brokerage.

3. A securities company shall only be licensed for securities underwriting when it is licensed for proprietary trading.

=> Thus, based on the above regulations in Vietnam, a securities company is only licensed to perform securities underwriting when it has been licensed to perform securities brokerage and proprietary trading. According to this Article, your company cannot apply for a license for the above 3 operations at the same time.

What are conditions for a securities company to be licensed to perform securities underwriting in Vietnam? (Image from the Internet)

How much percentage of charter capital of Vietnamese securities company can a foreign investor that is an individual hold up?

I am a foreign investor, an independent individual, not an organization. I plan to buy shares in Vietnamese securities companies. I wonder if I have the right to buy it? If so, how much charter capital can I buy at most? Thanks for the support, thanks!

Reply:

Pursuant to Clause 1, Article 77 of the Securities Law 2019 stipulates that foreign investors may contribute capital, buy shares and stakes in securities companies and fund management companies as follows:

a) A foreign investor that is an organization satisfying the requirements specified in Clause 2 of this Article and its related persons may hold up to 100% of charter capital of a securities company or fund management company. In case the requirements in Clause 2 of this Article are not fully satisfied, the foreign investor that is an organization and its related person may only hold up to 49% of charter capital of a securities company or fund management company.

b) A foreign investor that is an individual and his/her related persons may hold up to 49% of charter capital of a securities company or fund management company;

c) Foreign investors shall comply with regulations in Point c Clause 2 Article 74 and Point c Clause 2 Article 75 of this Law.

=> Thus, based on the above regulations in Vietnam, foreign investors are allowed to contribute capital to establish, buy shares, and contribute capital of securities companies. However, you invest as an individual so you can only buy shares to own a maximum charter capital of up to 49%.

How much percentage of charter capital of Vietnamese securities company can a foreign investor that is an organization hold up?

I am representing a foreign company and plan to invest in Vietnam in the near future, specifically in a Vietnamese securities company. If my company buys shares or capital contributions in securities companies in Vietnam, what is maximum percentage of charter capital that can be purchased? Ask for help!

Reply:

Pursuant to Clause 1, Article 77 of the Securities Law 2019 stipulates that foreign investors may contribute capital, buy shares and stakes in securities companies and fund management companies as follows:

a) A foreign investor that is an organization satisfying the requirements specified in Clause 2 of this Article and its related persons may hold up to 100% of charter capital of a securities company or fund management company. In case the requirements in Clause 2 of this Article are not fully satisfied, the foreign investor that is an organization and its related person may only hold up to 49% of charter capital of a securities company or fund management company.

b) A foreign investor that is an individual and his/her related persons may hold up to 49% of charter capital of a securities company or fund management company;

c) Foreign investors shall comply with regulations in Point c Clause 2 Article 74 and Point c Clause 2 Article 75 of this Law.

=> Thus, based on the above regulations in Vietnam, your company has right to buy shares and capital contributions in securities companies in Vietnam to own 100% of charter capital, if all conditions are met. In case you do not meet the conditions for holding 100% of charter capital, you can only own a maximum of 49%.

Above is the support content!

Best regards!