Vietnam to Tighten Supervision over Foreign Stock Investment Portfolios
The Vietnamese Ministry of Finance has just issued a regulation to tighten supervision over operations of foreign stock investment portfolios, Financial Investment newspaper has said.
Under the new regulation, foreign investment funds are requested to submit copies of business licenses, or document equivalents and hedge funds are asked send copies of charters to local market watchdogs, the newspaper said.
Vietnam Securities Depositary Center will not issue trade accounts for those investment institutions which have been charged for violations in banking, financial, forex activities, inside trading, frauds and money laundering, the paper said.
Foreign investors are allowed to open one account of their indirect investment portfolios in the dong.
The foreign investment funds and institutions are requested to report on their operations on monthly base to the State Securities Commission.
Last year, foreigners were net buyers of VND5.826 trillion (US$353 million) worth of local shares, according to Ho Chi Minh City Stock Exchange.
Up to 41 foreign and domestic investment management funds are operation in Vietnam, and last year most of foreign investment funds had big losses with two funds taking lead with NAV having fallen 70 per cent.
Currently, Vietnam’s market watchdogs have issued 12,700 foreign trading accounts. (Financial Investment)
Vietnamese
