Vietnam issued the Circular No. 121/TT-BTC on operation of securities companies

Nguyen Trinh

10:30, 16/01/2021

The Ministry of Finance of Vietnam has just issued the Circular No. 121/TT-BTC prescribing operation of securities companies.

According to the Circular No. 121/TT-BTC of the Ministry of Finance, when performing other financial services as prescribed in Clause 5, Article 86 of the Law on Securities of Vietnam, a securities company must ensure that these services relate to and support other licensed business functions; must ensure that the interests of its customers or its own and the stock market are not affected.

Concurrently, a securities company is not allowed to provide counseling services related to offering and listing of securities, equitization and valuation of another company of which at least 10% of the charter capital is held by the former.

Securities companies are only allowed to provide other financial services in accordance with laws after making written reports to the State Securities Commission.

The State Securities Commission has the right to request temporary suspension or termination of the provision of other financial services by any securities company if the provision of such services is in breach of the provisions of law or poses risks to the stock market.

More details at the Circular No. 121/TT-BTC of the Ministry of Finance of Vietnam, takes effect from February 15, 2021 and replaces the Circular No. 210/2012/TT-BTC.

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