Vietnam: Rules for trading of financial instruments for credit institutions

Vietnam: Rules for trading of financial instruments for credit institutions
Bảo Ngọc

On July 30 2021, the State bank of Vietnam issued Circular No.12/2021/TT-NHNN prescribing credit institutions and foreign bank branches’ trading of promissory notes, treasury bills, deposit certificates and bonds domestically issued by other credit institutions and foreign bank branches.

Accordingly, prescribing rules for trading of financial instruments for credit institutions and foreign bank branches, for example:

-  Credit institutions/FBBs are allowed to carry out the trading of financial instruments according to the contents about trading of corporate bonds and/or other financial instruments specified in their licenses issued by SBV.

- VND (Vietnamese Dong) shall be the currency used in trading of financial instruments.

- Credit institutions/FBBs shall only purchase promissory notes, treasury bills and deposit certificates whose remaining term to maturity is less than 12 months. The remaining term to maturity is the length of time commencing on the date of payment for the financial instrument as prescribed in Clause 3 Article 4 hereof and ending on the maturity date of that financial instrument on which its principal and interest must be fully paid.

- Credit institutions/FBBs shall only carry out trading of financial instruments issued by finance companies or finance lease companies with organizations (including credit institutions/FBBs)

Circular No.12/2021/TT-NHNN takes effect from October 27, 2021.

 

 

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE

74 lượt xem



  • Address: 19 Nguyen Gia Thieu, Vo Thi Sau Ward, District 3, Ho Chi Minh City
    Phone: (028) 7302 2286
    E-mail: info@lawnet.vn
Parent company: THU VIEN PHAP LUAT Ltd.
Editorial Director: Mr. Bui Tuong Vu - Tel. 028 3935 2079
P.702A , Centre Point, 106 Nguyen Van Troi, Ward 8, Phu Nhuan District, HCM City;