Foreign representative offices barred from share trades

The Ministry of Finance has recently issued Decision 83/2004 ND-BTC defining regulations on establishment and operations of representative offices in Vietnam of foreign securities trading organisations. Under this decree, representative offices in Vietnam of foreign securities trading organisations are allowed to research market, seek, promote investment cooperation opportunities in securities sector and the stock market with the Vietnamese economic organisations. However, these representative offices are not allowed to trade securities.
Also, as regulated, officers of these representative offices are not permitted to represent or to work for other economic organisations related to securities sector and the stock market in Vietnam.
The State Securities Committee is entitled to license, inspect, supervise performances of representative offices in Vietnam of foreign securities trading organisations.
The licenses issued to representative offices in Vietnam of foreign securities trading organisations is valid for five years. Before the licenses expire, foreign securities trading organisations can apply for license extension for their representative offices in Vietnam.

 

Category: Business, Legal, Stocks