The State Securities Commission of Vietnam has proposed eliminating the current regulation that requires foreign institutional investors to deposit 100 percent of the transaction value before trading stocks in Vietnam. If foreign investors fail to make full payments, securities companies through which foreign investors make transactions will take responsibility for the payment, according to the proposal. Tran Truong Manh Hieu, head of the strategy analysis unit at KIS Vietnam Securities Corporation, stated that securities brokerages would be permitted to sell the stocks of foreign institutional investors if these investors fail to make payments. The new policy should consider the potential for foreign institutional investors to default on payments. The State Securities Commission of Vietnam hoped these rules would exert a positive impact on the Vietnamese stock market upgrade, the official added.

Source: Tuoitre News July 27, 2024 01:28 UTC