Circular 68/2024/TT-BTC of the Minister of Finance dated September 18, 2024 amending and supplementing a number of articles of the Circulars regulating securities transactions on the securities trading system; clearing and settlement of securities transactions; activities of securities companies and information disclosure on the securities market, effective from November 2, 2024.
One of the new points in Circular 68/2024/TT-BTC is that foreign investors who are organizations are allowed to place orders to buy shares without requiring sufficient money.
Foreign institutional investors will soon be able to buy stocks without deposit. (Photo: ST)
In Article 1, Circular 68/2024/TT-BTC amended and supplemented a number of articles of Circular No. 120/2020/TT-BTC dated December 31, 2020 of the Minister of Finance regulating the trading of listed stocks, registration of trading and fund certificates, corporate bonds, and listed secured warrants on the securities trading system.
Specifically, the new Circular stipulates that investors must have sufficient money when placing an order to buy securities, except for two cases: investors trading on margin as prescribed in Article 9 of this Circular; organizations established under foreign law participating in investment in the Vietnamese securities market (hereinafter referred to as foreign investors) buying stocks do not require sufficient money when placing an order as prescribed in Article 9a of this Circular.
Circular 68/2024/TT-BTC has added Article 9a on "Stock purchase transactions do not require sufficient funds when placing orders by foreign institutional investors".
The Circular stipulates that securities companies (SCs) shall assess the payment risk of foreign investors to determine the amount of money required when placing a stock purchase order (if any) according to the agreement between the SCs and foreign investors or authorized representatives of foreign investors.
In case the foreign investor fails to pay in full for the stock purchase transaction, the obligation to pay for the transaction with insufficient money shall be transferred to the securities company where the foreign investor places the order through the self-trading account, except for the case specified in Clause 5 of this Article.
The Circular also clearly stipulates that the depository bank where the foreign investor opens a securities depository account is responsible for paying for transactions with insufficient funds and any costs incurred (if any) in case of incorrect confirmation of the foreign investor's deposit balance with the securities company, leading to insufficient funds to pay for stock purchase transactions.
At the same time, amend and supplement a number of articles of Circular No. 119/2020/TT-BTC dated December 31, 2020 of the Minister of Finance regulating the registration, depository, clearing and payment of securities transactions. Specifically, Circular 68/2024/TT-BTC supplements Article 35a on payment for stock purchase transactions of foreign investors who are organizations specified in Article 9a of Circular No. 120/2020/TT-BTC.
The new circular clearly states that foreign investors placing orders to buy shares must have enough money in their accounts before the time when the depository member must transfer money into the depository member's deposit account at the payment bank to make payment for securities transactions. Clearing and payment for stock purchase transactions are carried out in accordance with the law and regulations of the Vietnam Securities Depository and Clearing Corporation (VSDC).
Foreign investors who place orders to buy shares with insufficient payment funds as prescribed in Clause 2, Article 9a of Circular No. 120/2020/TT-BTC, VSDC shall transfer the payment obligation for the foreign investors' stock purchase transactions with insufficient payment funds to the obligation of the securities company where the foreign investors place orders to buy shares (through the securities company's proprietary trading account) on the payment date, based on the following notices:
In case the foreign investor opens a depository account at a securities company, the securities company shall notify VSDC about the foreign investor's lack of money to pay for the stock purchase transaction and the transaction information requested to be converted into the payment obligation of the securities company.
In case the foreign investor opens a depository account at a depository bank, the depository bank shall notify VSDC that the foreign investor lacks money to pay for the stock purchase transaction and refuse to pay for the transaction lacking money.
Securities companies must ensure sufficient funds to pay for transactions as prescribed in Clause 2 of this Article. Securities companies shall be subject to penalties in accordance with the law and VSDC's regulations in case they fail to ensure the performance of obligations as prescribed in Clause 2 of this Article.
Source: https://www.congluan.vn/nha-dau-tu-to-chuc-nuoc-ngoai-sap-duoc-mua-co-phieu-khong-can-ky-quy-post313024.html
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