Foreign investors will not be restricted in their ownership ratio in the securities investment fund

VCN- Foreign investors will not be restricted in their ownership ratio in the securities investment fund and securities investment companies. This issueis specified in the draft Circular guiding the operation and management of securities investment funds, which wasannounced by the Ministry of Finance for consultation.
0957-5908-ffaa2-1456472351385
The Ministry of Finance has consulted the draft circular guiding the operation and management of securities investment funds.

Supervise assets of funds

The Draft Circular provides that securitiesinvestment funds includeprivate funds, closed-end funds, open-ended funds, Exchange-Trade Funds (ETF), and real estate investment funds.

The draft circular stipulates that real estate investment funds and securities investment companies must be managed by fund management companies; the operation of securities investment funds and securities investment companies are performed through fund management companies, exempting private securities investment companiesmanagingtheirown capital.

At the same time, assets of private funds, the private securities investment company must be deposited at a custodian bank. Assets of mutual funds, mutual securities investment company must be deposited at a supervisory bank. The management of capital and assets of a mutual fund or mutual securities investment company must be supervised by a supervisorybank.

The draft specifies that assets of the securities investment fund, securities investmentcompany owned by investors andshareholders are equivalent to the contributed capital ratio and are not assets of the fund management company, supervisorybank or custodian bank. The fund management company is only allowed to use the assets of the securities investment fund and the securities investment company to pay the payment obligations of the fund, the securities investment company, and is not allowed to pay or implement payment guaranteesfor the financial obligations of the fund management company, supervisory bank or any other organization or individual in any form and in all cases.

Notably, the Ministry of Finance stipulates that State authorities and units of Vietnamese people's armed forces are not allowed to contribute capital to establish securities investment funds, or securities investment companies; or buy fund certificates and shares of securities investment companies. The capital contribution to the establishment of funds, purchase of fund certificates by credit institutions, insurance companies, securities trading company and state-owned enterprises shall comply with relevant specialized laws. The fund management company and its related persons are allowed to participate in trading fund certificates managed by themselves if the fund's regulations allows .

The fund management company and related persons are allowed to participate in trading fund certificates managed by themselves if the fund's charter permits.

The draft circular also provides that foreign investors are not restricted in their ownership ratio in securities investment funds or securities investment companies. Exempting the open-ended fund and the exchange-trade fund, securities investment funds and securities investment companies with a foreign capital ownership ratio of 51% or more of their charter capital must register securities trading codes and be subject to the laws on ownership restrictions applicable to foreign investors.

Principle of fund's dividend payment

The draft regulates net asset value and asset transaction of the fund. Accordingly, the fund management company shall determine or authorize the custodian bank to determine the net asset value of the fund and the net asset value on a fund certificatemonthly.

In case of authorizingof authorizing a custodian bank to determine the net asset value, the fund management company must regularly inspect and supervise to ensure that the determination of net asset value is in accordance with the provisions of law and regulations in the fund’s charter and the net asset value are calculated accurately.

The fund management company must develop a valuation manual. The list of quotation organizations and valuation manuals must be approved by the Fund’s Board of Representatives.

Notably, on the distribution of profits, the Draft specifies thatthe fund must pay dividendsin cash or fund certificates, at least 15 days before distributing dividends, the fund management company must notify to the registered address of investor.

The fund's dividend payment ensures the principle that the dividends distributed to investors are taken from the source of profits in the period or accumulated profits after the fund has fulfilled all tax and financial obligations in accordance with the law.

In addition, the dividend payment must be in accordance with the fund's profit distribution policy and approved by the general meeting of investors. At the same time, the net asset value of the fund must not be less than VND50 billion after the dividend payment.

In case of dividend payment by fund certificates, the fund must have sufficient reciprocal capital from undistributed after-tax profits based on the latest audited or reviewed financial statements.

State authorities and units of Vietnamese people's armed forces are not allowed to contribute capital to establish securities investment funds, or securities investment companies; or buy fund certificates and shares of securities investment companies. The capital contribution to the establishment of funds, purchase of fund certificates by credit institutions, insurance companies, securities trading company and state-owned enterprises shall comply with relevant specialized laws. The fund management company and its related persons are allowed to participate in trading fund certificates managed by themselves if the fund's regulations allows .

By Bao Minh/Ngoc Loan

Related News

Green transformation: It

Green transformation: It's time to force businesses to "get involved"

VCN - Implementing ESG (environment, society, corporate governance) and green transformation has become a mandatory requirement for businesses to achieve sustainable development.
Accelerating investment to meet "green" standards

Accelerating investment to meet "green" standards

VCN – Many businesses are implementing large-scale investments in technology, energy transitions, and production processes to meet the increasingly stringent "green" criteria set by the EU market.
Electronics industry overcomes challenges to penetrate deep into global supply chain

Electronics industry overcomes challenges to penetrate deep into global supply chain

VCN - In addition to the opportunities from the investment shift in the electronics industry, Vietnamese enterprises also face many challenges in terms of capital, technology and human resources. Ms. Do Thi Thuy Huong, Executive Committee Member of the Vietnam Electronics Industry Association (VEIA), shared about the future directions for this potential industry.
Continue to handle cross-ownership in banks

Continue to handle cross-ownership in banks

VCN - The situation of excess share ownership, cross-ownership between credit institutions (CIs), CIs and enterprises, although has decreased significantly compared to previous periods, is still complicated and requires continued inspection and control.

Latest News

Expansionary fiscal policy halts decline, boosts aggregate demand

Expansionary fiscal policy halts decline, boosts aggregate demand

VCN - Customs News interviews Ms. Nguyen Thanh Nga, Deputy Director of the Institute for Financial Strategy and Policy (Ministry of Finance).
Ministry of Finance stands by enterprises and citizens

Ministry of Finance stands by enterprises and citizens

VCN - This was the affirmation of Deputy Minister of Finance Cao Anh Tuan at the 2024 Dialogue Conference on Tax and Customs Policies and Administrative Procedures. The conference, jointly organized by the Ministry of Finance and the Vietnam Chamber of Commerce and Industry (VCCI) on December 10, attracted 530 enterprises from the northern region.
Banks face difficulties in balancing capital raising and lending

Banks face difficulties in balancing capital raising and lending

Banks often use their charter capital to compensate for a capital shortage, as lending exceeds capital raising.
Credit continues to increase at the end of the year, room is loosened to avoid "surplus in some places - shortage in others"

Credit continues to increase at the end of the year, room is loosened to avoid "surplus in some places - shortage in others"

VCN - Credit demand continues to increase at the end of the year, thereby helping banks compete through continuing to adjust interest rates appropriately.

More News

M&A in Vietnamese non-life insurance sector sees strong development

M&A in Vietnamese non-life insurance sector sees strong development

While mergers and acquisitions in the Vietnamese life insurance sector have been relatively quiet, M&As in the non-life insurance sector have been quite strong, with the participation of both foreign and domestic investors.
More tax law reforms needed to address e-commerce challenges

More tax law reforms needed to address e-commerce challenges

The rapid growth of e-commerce has contributed significantly to Vietnam's economic development, but it also brought challenges, particularly in tax management.
Ho Chi Minh City achieves record state revenue of over VND500 trillion in 2024

Ho Chi Minh City achieves record state revenue of over VND500 trillion in 2024

VCN - For the first time in its history, Ho Chi Minh City’s budget revenue surpassed VND500 trillion in just 11 months of 2024.
Accelerating public investment in national key transportation projects

Accelerating public investment in national key transportation projects

VCN - According to the Ministry of Finance, the disbursement of funds for national key transportation projects in the first ten months of 2024 exceeded the average disbursement rate for other sectors. However, the pace has slowed in recent months.
Disbursement of public investment from foreign loans reaches 39.06% of the plan

Disbursement of public investment from foreign loans reaches 39.06% of the plan

VCN - At a conference held on December 3, 2024, to discuss the disbursement progress of public investment from foreign loans in the final months of the year, the Department of Debt Management and External Finance reported that ministries and agencies had disbursed over VND3.285 trillion. Notably, six ministries proposed returning a total of VND2.0924 trillion from the 2024 allocated budget.
State capital management commission to be dissolved

State capital management commission to be dissolved

The Commission for Management of State Capital at Enterprises will cease its operations, following Resolution No 18 of the Central Party Committee.
There is still room for credit growth at the end of the year

There is still room for credit growth at the end of the year

VCN - To achieve the credit growth target of 15% for the whole year of 2024 as directed, the banking system will have to "pump" out nearly VND 670,000 billion of loans to the economy in the last 2 months of the year, so many solutions are needed to accelerate capital flow.
The importance of user-friendly tax platforms for online retailers

The importance of user-friendly tax platforms for online retailers

VCN - The e-portal for individual and business households engaging in e-commerce activities has been completed. Trial runs for its interface, operational solutions, and functionality have also been finalized, with plans to officially roll out the portal soon.
Nearly 30 trillion VND mobilised through G-bond auctions

Nearly 30 trillion VND mobilised through G-bond auctions

The Hanoi Stock Exchange successfully organised 17 Government bond auctions in November, raising 20.76 trillion VND (817.56 million USD) for the State Treasury.
Read More

Your care

Latest Most read
Expansionary fiscal policy halts decline, boosts aggregate demand

Expansionary fiscal policy halts decline, boosts aggregate demand

VCN - Fiscal policy, in particular, has been implemented with a reasonable, focused, and targeted expansionary approach to halt the decline, boost aggregate demand, and foster economic recovery.
Ministry of Finance stands by enterprises and citizens

Ministry of Finance stands by enterprises and citizens

This was the affirmation of Deputy Minister of Finance Cao Anh Tuan at the 2024 Dialogue Conference on Tax and Customs Policies and Administrative Procedures.
Banks face difficulties in balancing capital raising and lending

Banks face difficulties in balancing capital raising and lending

Banks often use their charter capital to compensate for a capital shortage, as lending exceeds capital raising.
Credit continues to increase at the end of the year, room is loosened to avoid "surplus in some places - shortage in others"

Credit continues to increase at the end of the year, room is loosened to avoid "surplus in some places - shortage in others"

Credit demand continues to increase at the end of the year, thereby helping banks compete through continuing to adjust interest rates appropriately.
M&A in Vietnamese non-life insurance sector sees strong development

M&A in Vietnamese non-life insurance sector sees strong development

While mergers and acquisitions in the Vietnamese life insurance sector have been relatively quiet, M&As in the non-life insurance sector have been quite strong, with the participation of both foreign and domestic investors.
Mobile Version