Ms. Nguyen Thanh Phuong's company must pay money on behalf of foreign investors.

(Dan Tri) - Foreign investors bought FPT shares but did not pay nearly 4 billion VND. Vietcap Securities Company of Ms. Nguyen Thanh Phuong had to pay instead.

Vietcap Securities Joint Stock Company (stock code: VCI), chaired by Ms. Nguyen Thanh Phuong, has just announced a transaction of a foreign investor buying shares without prepayment but without making payment.

A foreign investor from the Netherlands, named Aegon Custody BV, placed a purchase order and matched 26,600 FPT shares on December 17. The total amount the foreign investor had to pay was nearly VND4 billion. However, because the investor had not paid, Vietcap Securities had to pay.

Vietcap Securities pays money on behalf of foreign investors (Illustration: Dang Duc).

This is applied according to the new regulations in Circular 68, effective from November 2. Specifically, in case a foreign investor does not pay enough money for the transaction, the payment obligation will be transferred to the securities company where the investor places the order through the self-trading account.

Simply put, if a foreign institutional investor does not have enough money to pay for the purchased transaction, the securities company where the investor placed the order must pay on their behalf.

According to previous regulations, foreign investors were only allowed to place buy/sell orders when they had deposited 100% of money/securities in their trading account.

However, the above regulation is considered to hinder the effective use of capital by foreign investors and limit the liquidity of the market in general. This bottleneck also prevents Vietnam from being upgraded from a frontier to an emerging stock market, so it needs to be removed to speed up the upgrading process.

Regarding the fact that securities companies have to pay instead of foreign investors when they do not have enough money to pay for the transaction, some experts in the industry said that to minimize risks, securities companies often evaluate the reputation of foreign investors and the stocks they buy.

Companies will usually have a list of stocks that are reputable enough to grant purchase rights to foreign investors, along with a maximum number that can be purchased. If foreign investors violate and do not pay for the transaction, securities companies also set out sanctions to eliminate risks such as removing their names from the list of those granted purchase rights...

According to the roadmap, after paying the money, the securities company will resell these shares to investors on T+3.

Source: https://dantri.com.vn/kinh-doanh/cong-ty-cua-ba-nguyen-thanh-phuong-phai-tra-tien-thay-nha-dau-tu-nuoc-ngoai-20241222084114971.htm