Decision No. 55/2009/QD-TTg: Foreign ownership cap for OTC firms

The Prime Minister issued Decision No 55/2009/QD-TTg on April 15 on foreign investment in the Vietnamese stock market. The decision attempts to clear up ambiguities in Decision No 238/2005/ND-CP.

Under the new decision, foreign investors are permitted to own up to a 49 per cent interest in a public holding company, public securities investment fund, or public securities investment company.

The decision also provides that only foreign securities trading companies are allowed to contribute capital to establish securities companies in Viet Nam, in which they may own no more than 49 per cent of charter capital. Only foreign securities trading companies, which operate in the field of investment fund management and foreign insurance companies, are allowed to contribute capital to establish a fund management company in Viet Nam, again with a maximum limit of 49 per cent of charter capital.

Foreign investors, who own shares in public securities companies, fund certificates in public investment funds or have contributed capital to securities company in excess of 49 per cent, will be allowed to maintain the current ratio of ownership, but only transactions to dispose of shares, certificates or interests will be allowed.

(Source: VNN/VNS)