07 conditions for investment portfolio structure of investment companies in Vietnam

07 conditions for investment portfolio structure of investment companies in Vietnam (Internet image)

Article 9 of Circular 227/2012/TT-BTC stipulates that the investment portfolio structure of investment companies must comply with their charters, and:

1. Do not invest in more than 15% of the total value of circulating securities of an issuer, except for Government bonds;
2. Do not invest in more than 20% of the total asset value of the investment company in the securities and assets, as prescribed in Point a and Point b Clause 2 of of Article 9 of Circular 227/2012/TT-BTC, that are issued by the same organization, except for Government bonds;
3. Do not invest in more than 30% of the total asset value of the investment company in the assets, as prescribed in Points a, b, d, dd and e Clause 2 of of Article 9 of Circular 227/2012/TT-BTC, that are issued by the same organization or the same group of companies;
4. Do not invest in more than 10% of the total asset value of the investment company in the real estate or primary assets, as prescribed in Point dd Clause 2 of Article 9 of Circular 227/2012/TT-BTC;
5. Do not use capital and assets of investment companies to give loans or guarantee loans, except for investing deposit prescribed in Point a Clause 2 of Article 9 of Circular 227/2012/TT-BTC; do not use assets of investment companies to take consumer loans, trade securities on margin, giving loans of assets for selling, giving loans of securities for selling (short selling);
6. Do not make investment in the shares of that investment company, in the securities investment funds nor in other investment companies established and operated in Vietnam;
7. Where an investment company is a foreign investor as prescribed in Clause 8 Article 3 of Circular 227/2012/TT-BTC, when making investments, it must comply with the regulations on ownership limits applicable to foreign investors.

More details can be found in Circular 227/2012/TT-BTC, effective from July 1, 2013.

Le Vy

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