Headlines 25/08/2015 10:27 SA

Foreign holdings on Vietnam’s securities market

Nguyễn Huyền

The Ministry of Finance has just promulgated Circular No. 123/2015/TT-BTC on foreign holdings on Vietnam’s securities market as follows:
- Maximum permissible foreign holdings in public companies are determined according to Clause 2 Article 1 of Decree No. 60/2015/NĐ-CP

- If a public company in which the foreign holding is not restricted wishes to restrict the foreign holding, its charter must specify the maximum permissible foreign holding.

- If the foreign holding of a public company exceeds the permissible limit, it must not be increased any further.

- Foreign holdings in securities companies are not restricted. To be specific:

+ Foreign organizations that satisfy conditions in Clause 21 and Clause 24 Article 1 of Decree No. 60/2015/NĐ-CP may hold 51% of charter capital of securities companies or over;

+ Each foreign investor other than the aforementioned organizations may hold less than 51% of charter capital of a securities company.

Circular No. 123/2015/TT-BTC comes into force from October 01, 2015 and replaces Circular No. 213/2012/TT-BTC.
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