SERCURITIES TRADING ACCOUNTS

SECURITIES TRADING ACCOUNT

According to:

– Law On securities 2019

– Circular 123/2015/TT-BTC providing guidance on foreign investment activities on Vietnam’s securities market

– Circular 120/2020/TT-BTC providing for the trading of listed and registered shares, fund certificates, corporate bonds and secured warrants listed on securities trading systems

– Decree 155/2020/ND-CP detailing the implementation of a number of articles of the securities law

– Circular 97/2020/TT-BTC providing guidance on the operation of representative offices and branches of foreign securities companies and foreign fund management companies in Vietnam

How to make an account for a security company to buy and sell stocks on the Vietnames stock market, including:

I. VIETNAM STOCK MARKET (HANOI / SAIGON / PLAN TO CONVERGE)

The investor is forced to open a securities trading account at a securities company to carry out securities transactions as prescribed in Circular 120/2020/TT-BTC and is also responsible for providing sufficient and accurate information for customer identity information during the course of opening a trading account and complying with prescribed at Points a and b, Clause 1, Article 6 of Circular 120/2020/TT-BTC.

II. WHETHER A FOREIGNER CAN MAKE AN ACCOUNT

– In the case of direct investment as prescribed in Point a, Clause 1 Article 138 of Decree 155/2020/ND-CP, foreign investors must register a securities transaction code with the Vietnam Securities Depository and Clearing Corporation before carrying out any operations investment action.

– In case of indirect investment under the provisions of Point b, Clause 1 Article 138 of Decree 155/2020/ND-CP, foreign investors are not required to register a securities transaction code; Securities investment fund management companies, branches of foreign fund management companies in Vietnam receiving capital trust from foreign investors must register securities transaction codes on the principles specified at Point d, dd Clause 2 Article 145 Decree 155/2020/ND-CP.

1. Securities trading code registration with the Vietnam Securities Depository

If investors do not have a securities transaction code, they must complete the procedure to apply for a transaction code at the Vietnam Securities Depository (VSD).

Records include:

1.1. The application form given in Appendix 41 attached Decree 155/2020/ND-CP;

1.2. A document authorizing depository members to register securities trading codes, except for cases where the organization registering securities trading codes is a depository member.

1.3. Foreign investor’s credentials under instructions given in Appendix 42 attached Decree 155/2020/ND-CP.

2. Foreign investors shall not be issued securities trading codes under the following circumstances:

2.1. If they are currently under investigation or are used to be subjected to penalties imposed by domestic or foreign competent authorities for their commission of prohibited acts under the provisions of laws on securities, money laundry crimes or other violations against laws as well as are faced with administrative or criminal penalties for violations against laws on finance, banks, foreign exchange administration and taxes management without having their criminal records cleared or the statute of limitations for execution of decisions on sanctioning administrative violations have not expired;

2.2. The securities trading code has been canceled according to the provisions of Point a, Clause 2, Article 147 of Decree 155/2020/ND-CP.

III. WHETHER A FOREIGNER CAN MAKE AN ACCOUNT THROUGH THE INTERNET?/ EVEN THOUGH NOT LIVING IN VIETNAM

Foreigners can not make a trading account through the Internet.

A client’s securities trading account with a securities company must be established in the form of a written contract under Clause 1, Article 16 of Circular 97/2020/TT-BTC. Currently, according to the law, the form of opening an account online (online) is not valid. Because the account opening contract requires the signature of the person who opens the account, creating an account via the internet cannot sign it. Also, the signature of the account maker on the contract is very important, it involves the future withdrawal of money from the stock account.

But foreigners can choose to open a stock account remotely.

Investors need to choose a securities company that they need to open an account, then the securities company will send the investor a set of contracts to open the account. After that, the investor prints, signs and delivers attached to copies of personal identification papers (still within 6 months), the securities company will activate securities accounts for investors after receiving full contracts.