Funds Allowed for Capital Hike after Two Years of Gaining Profits

Investment funds can apply for capital increase after they gain profits for two straight years, according to the Ministry of Finance (MoF).

 

Additionally, the investment funds must not be entitled to any administrative fines or not commit criminal violations within the last two years.

 

The charter of the funds are also required to define capital increase, plans on issuing fund certificates must be fair, transparent and protect investors.

 

Issuing prices of fund certificates are fixed based on the funds’ net asset value (NAV).

 

The funds have to disclose their prospectus with clearly governing plans on issuing fund certificates and using capital raised from such certificate issue. In addition, the financial report for two successive years before application for capital increase is required to be certified by an independent auditing firm.

 

According to SSC, this statute is a basis for SSC to consider the application for raising chartered capital of VF1 to VND500 billion from the current VND300.

 

The total net asset value of VF1 amounted to VND381.55 billion ($24.1 million) by the end of last year from its original VND300 billion ($19 million).

 

By May, VF1 had been operating for two years.