Official Letter No. 496/UBCK-PTTT: Securities watchdog reaffirms foreign ownership cap

On July 12, the State Securities Commission issued Official Letter No. 496/UBCK-PTTT, guiding foreign investors’ holding of stocks or investment fund certificates offered through additional issues by companies listed with securities trading centers.

On July 12, the State Securities Commission issued Official Letter No. 496/UBCK-PTTT, guiding foreign investors’ holding of stocks or investment fund certificates offered through additional issues by companies listed with securities trading centers.

Under the guidance, foreign investors may hold up to 49% of the total shares or investment fund certificates, including those additionally issued.

For enterprises that offer and list their stocks or investment fund certificates abroad, the quantity of stocks or investment fund certificates allowed to be offered and listed abroad could not exceed 49% of the additionally issued stocks or certificates.

With this specific guidance, the State Securities Commission requested listed companies to take the initiative in working out appropriate plans on additional stock issues to increase capital.

The Commission also ordered securities companies to comply with limits when elaborating their plans to offer shares.

According to the State Securities Commission, this guidance was provided to keep the rate of investors’ holdings in Vietnam’s securities market in compliance with Prime Minister’s Decision No. 238/2005/QD-TTg of September 29, 2005, on foreign investors’ maximum holding rate of listed stocks or investment fund certificates.

(Source: Vietnam Law)