Application of securities trading codes (STC) by foreign investors
1. Steps of execution:
- Step 1: Foreign investors directly submit or authorize Depository
members (DMs) to submit STC Application file to VSD;
- Step 2: VSD receives application files during office hours on working
days, and examine application files:
+ In case of application files, VSD will reply in writing to request for
supplementation.
+ In case of invalid application files, VSD will reply in writing clearly
stating the reason.
+ In case of complete and valid application files, VSD will issue
Certificate of securities trading code for investors.
2. Application file sending
Application files can be submitted directly at VSD’s Head Office or sent to
VSD by courier.
3. Required components and number of the application file:
3.1. Required components:
3.1.1. Trading code registration for foreign investors:
a) Related forms
- Appendix 1 (applicable to institutional investors who directly submit
STC application file to VSD);
- Appendix 2 (applicable to individual investors who directly submit STC
application file to VSD);
- Appendix 3 (applicable to authorized DMs), enclosed with Appendix
1/Appendix 2 and Power of Attorney to DMs.
b) Documents identifying foreign investors:
- As regards institutional investors: refer to the form of Appendix 15
- As regards individual investors: valid copy of valid passport or other
lawful personal identifier.
c) Valid copy of in-principle contract for opening securities trading
accounts (if any); valid copy of contract/contract in principle for asset
depository with a domestic depository member or valid copy of power of
attorney with reference to depository activities in Vietnam (if any); valid copy
of contract for opening indirect investment capital account or contract for
opening an account for capital contribution and share purchase at a commercial
bank (if any);
3.1.2. The following materials are additionally required if foreign investor
has a transaction representative:
- Document appointing transaction representative according to Appendix
13;
- Information sheet of the transaction representative according to Appendix
14;
- True copy of valid ID cards or passports or other lawful personal
identifer of the transaction representative;
- True copy of securities business practising certificate.
3.2. Additional application file for investment portfolios of a fund managed
by Multiple Investment Managesr – MIMF which are permitted to apply for one
securities trading code for each investment portfolio and securities companies
which are issued with two trading codes: one for proprietary account and one
for brokerage account:
a) Related forms:
- Appendix 1 (applicable to institutional investors who directly submit
STC application file to VSD)
- Appendix 3 (applicable to authorized DMs), enclosed with Appendix 1
and Power of Attorney to DMs.
b) Documents identifying foreign investors - Appendix 15.
c) A copy of the trading code certificate previously granted.
3.3 Notice of appointing or adding depository members of foreing
investors, fund mangers, branches of fund manager in Vietnam
- Appendix 4: Notice of depository member, attached with a valid copy of
contract for account opening or Power of Attorney as regards depository
operations.
3.4. Number of application files: 02 sets (1 original and 1 copy).
Each set comprises 2 copies, one in Vietnamese and one in the language of
the home country.
4. Handling time:
- For institutional investors: 5 days from receipt of a complete and valid
application file by VSD
- For institutional investors: 3 days from receipt of a complete and valid
application file by VSD.
5. Parties involved:
VSD, foreign investors or authorized Depository members
6. Performance result:
Certificate of STC registration for foreign investors
7. Fee (if any):
None
8. Forms (if any):
- Appendix 1: Application form for securities trading code (applicable to
institutional investors);
- Appendix 2: Application form for securities trading code (applicable to
individual investors);
- Appendix 3: Request for securities trading code registration for foreign
investors (prepared by depository member);
- Appendix 4: Notice to depository member;
- Appendix 13: Power of attorney/document appointing the transaction
representative;
- Appendix 14: Information sheet of the transaction representative;
- Appendix 15: Documents identifying foreign institutional investors.
9. Requirements, conditions for execution (if any):
9.1. Foreign investors: a foreign investor is ineligible for being granted a
certificate of trading code registration in any one of the following cases:
+ The foreign investor is currently or was subject to penalty by a local or
foreign competent authority for prohibited practices as prescribed in the Article
9 of Law on Securities or for money laundering activities; or having other
serious breaches in the sectors of finance, banking, foreign exchange control or
tax for which he/she is subject to penalities at least in form of fines and is still in
the penalty time, or not completely implementing the penalty decision;
+ Investor’s trading code is cancelled within 2 years prior to the date of
application file submission for securities trading code.
9.2. Transaction representative of foreign investor in Vietnam:
+ Having full capacity for civil and legal acts; not being currently subject
to imprisonment or being banned by a court from professional business practice;
+ Having a securities business practicing certificate;
+ Not being concurrently an employee of a securities business organization
or depository bank operating in Vietnam;
+ Acting as the sole representative of the foreign investor in Vietnam and
having written authorization from the foreign investor.
9.3. Application file validity:
+ Documents issued by the competent authority of the home country
must be notarized or certified in accordance with foreign law and consularized
in accordance with the relevant law of Vietnam (except for the documents
download from the website of the foreign authority)
+ Documents prepared by foreign investors should only be notarized,
certified in accordance with foreign law;
+ Documents in foreign languages have to be translated into Vietnamese
by the depository member or a translation organization legally operating in
Vietnam or overseas. Whenever a depository member does the translation, a
written certification by the depository member of the accuracy and truthfulness
of the translation have to be enclosed.
+ Documents in foreign languages have to be notarized, certified within
a period of no more than nine (9) months as at the date of application file
submission to VSD.
+ Amended or supplemented application files must be signed by the
signatories on the initial application files sent to VSD or by those who are
authorized in writing by such signatories or by those who have the same
position titles and authority as such signatories.
9.4. Condition for advance issuance of Certificate of trading code
registration: a valid and complete application file in accordance with applicable
rules and regulations.
10. Relevant legal documents:
- Law on Securities No. 70/2006/QH11 dated 29th June 2006 and Law on
amendment and supplementation of some provisions of Law on Securities No.
62/2010 dated 24th November 2010;
- Decree No.58/2012/NĐ-CP dated 20 July 2012 by the Government
providing detailed regulations for implementation of a number of articles of the
Law on Securities and Law on amendment and supplementation of a number of
articles of the Law on Securities;
- Circular No. 213/2012/TT-BTC dated 6 December 2012 guiding
activities of foreign investors in Vietnam Securities Market;
- Other relevant legal documents.