Conditions for issuing the License for establishment and operation to a private investment company in Vietnam

Conditions for issuing the License for establishment and operation to a private investment company in Vietnam (Internet image) 

Article 20 of Circular 227/2012/TT-BTC stipulates the conditions for issuing the License for establishment and operation to a private investment company in Vietnam as follows:

• Clause 1 Article 87 of the Decree 58/2012/ND-CP shall apply to the private investment companies that delegate the capital management;

• Clause 2 Article 87 of the Decree 58/2012/ND-CP shall apply to the private investment companies that manage their capital themselves.

If the charter of the investment company allows, shareholders may make contributions from listed and registered securities at the Stock Exchange of Vietnam. The contributions from securities must ensure that:

• The contributors are not restricted from transferring the securities planned to be contributed to the investment company; the securities are not collateral being pledged, mortgaged, deposited, or blocked in other collateral transactions as prescribed by civil laws;

• The securities contributed to the investment company are conformable with the charter of the investment company, congruent with the investment targets and investment policies of the investment company; are not suspended nor delisted, nor securities of issuers that are put into liquidation, dissolution, or bankruptcy;

• The contributions make from securities must be approved by all shareholders of the investment company, and only consider complete after the lawful ownership of each contributed security is transferred to the investment company. The ownership transfer must comply with the guidance of the Vietnam Securities Depository;

• The valuation of contributed securities must be conformable with the charter of the investment company, and Annex 07 enclosed with this Circular. The prices of securities being contributed to the private investment company shall be determined by the depository bank based on the closing prices on the date on which the procedure for transferring the ownership is completed

More details can be found in Circular 227/2012/TT-BTC, which comes into force from July 1, 2013.

Le Vy

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