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Legal Document
Foreign investors' trading representatives must not directly make investment decisions until receiving trading orders
Thursday, 05/08/2021 05:27
Foreign investors' trading representatives must not directly make investment decisions until receiving trading orders

The Circular No. 51/2021/TT-BTC guiding obligations of organizations and individuals in the foreign investment activities on Vietnam securities market is promulgated by the Ministry of Finance on June 30, 2021.

According to the Circular, foreign investors, their trading representatives must ensure that investment transactions in the Vietnam’s securities market and transactions conducted by affiliated persons and groups of affiliated foreign investors are not aimed at creating sham supply or demand, manipulating securities prices and other prohibited trading acts prescribed by law regulations.

When conducting transactions for foreign investors, trading representatives of such foreign investors shall strictly follow trading and payment directions of foreign investors, and refrain from directly making investment decisions, including selection of securities type, amount, price and trading time, until they receive trading orders and investment directions of foreign investors.

Additionally, in case they provide services or participate in securities auctions as authorized by foreign investors, securities companies must separate trading orders and investment directions of foreign investors from those of domestic investors (if any) and their own ones, ensuring the observance of the law regulations on the rate of foreign holding in Vietnamese enterprises.

This Circular takes effect on August 16, 2021.

Theo luatvietnam.vn
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