The prime minister on July 20 issued a Decree No 58/2012/ND-CP detailing and guiding the implementation of some articles of the Law on Securities and amending and supplementing some articles of this Law.
Remarkably, the Decree No 58 allows foreign investors to buy shares or contribute capital to own 49 percent of chartered capital of the securities business organisations that are active. Foreign organisations when meeting the conditions as specified in points a, b, d, Clause 10 will be allowed to own 100 percent of the chartered capital of securities companies that are operating or set up a 100 percent foreign-invested new securities business organisation in Vietnam.
However, Clause 9, Article 71 of the Decree also stated that the purchase of stake or capital contribution of foreign investors will be under the guidance of the Ministry of Finance (MoF).
This means that without the guidance of MoF to raise the “room”, the maximum ownership ratio of foreign organisations in a local securities company is still applied as the current level (49%).