Quyết định 998/2002/QĐ-NHNN của Ngân hàng Nhà nước về quản lý ngoại hối đối với việc mua, bán chứng khoán của tổ chức, cá nhân nước ngoài tại trung tâm giao dịch chứng khoán

DECISION

ON THE FOREIGN EXCHANGE MANAGEMENT OVER SECURITIES TRADING BY FOREIGN ORGANIZATIONS AND INDIVIDUALS AT SECURITIES TRADING CENTERS

THE STATE BANK GOVERNOR

Pursuant to State Bank Law No.01/1997/QH10 of December 12, 1997;
Pursuant to the Government’s Decree No.48/1998/ND-CP of July 11, 1998 on securities and securities market;
Pursuant to the Prime Minister’s Decision No.139/1999/QD-TTg of June 10, 1999 on the rates of foreign parties participation in Vietnam’s securities market;
At the proposal of the director of the Foreign Exchange Management Department,

DECIDES:

Article 1.- Regulation scope

Foreign exchange transactions related to the purchase and/or sale of securities listed at securities trading centers by foreign organizations and individuals, including the transfer of capital into Vietnam for purchase and/or sale of securities, conversion of foreign currencies into Vietnam dong, opening and use of Vietnam dong accounts for purchase and/or sele of securities, conversion of Vietnam dong into foreign currencies and transfer of foreign currencies overseas, shall be effected in compliance with the provisions of this Decision and relevant provisions in current documents on foreign exchange management.

Article 2.- Objects of application

Objects of application of this Decision include:

1. Non-residents being organizations established under foreign laws, foreigners (including both residents and non-residents), non-residents being overseas Vietnamese.

2. Organizations and individuals being foreign parties to foreign-invested enterprises in Vietnam that use divided profits or other lawful incomes in Vietnam to purchase and/or sell securities at securities trading centers.

In this Decision, the above-mentioned objects shall be referred collectively to as foreign organizations and individuals.

Article 3.- Capital sources for participating in securities purchase

Foreign organizations and individuals are entitled to use the following capital sources to purchase securities:

1. Foreign currencies transferred from foreign countries into Vietnam according to the current foreign exchange management regulations;

2. Foreign currencies on foreign-currency deposit accounts opened by foreign organizations and individuals mentioned in Article 2 of this Decision at the banks licensed to conduct foreign exchange business activities in Vietnam;

3. Profits divided to foreign organizations and individuals from foreign direct investment activities in Vietnam;

4. Proceeds earned by foreign organizations and individuals from the assignment, liquidation or dissolution related to foreign direct investment activities in Vietnam according to the current regulations;

5. Amounts collected from the export of goods and/or services into Vietnam by foreign organizations and individuals according to the current regulations;

6. Wages, bonuses and other lawful incomes of foreign individuals in Vietnam in compliance with the current regulations.

Article 4.- Transfer of capital into Vietnam for securities purchase

Foreign organizations and individuals that transfer foreign currencies from foreign countries into Vietnam to purchase securities shall have to sell such foreign currencies to the banks being foreign custody members (hereinafter referred to as foreign custody members for short) where foreign organizations and individuals open accounts for purchasing and/or selling securities in Vietnam dong.

Article 5.- Securities trading accounts

1. Opening of securities trading accounts in Vietnam dong and securities custody accounts

Foreign organizations and individuals that wish to purchase and/or sell securities listed at securities trading centers shall have to open at a foreign custody member a securities trading account in Vietnam dong and a securities custody account according to the provisions of this Decision and current provisions of the securities and securities market legislation.

2. Use of securities trading accounts in Vietnam dong

Revenues:

a/ From the sale of foreign currencies to foreign custody members;

b/ From the sources mentioned in Clauses 3, 4, 5 and 6, Article 3 of this Decision;

c/ From the account transfer from Vietnam-dong accounts of such foreign organizations and individuals in Vietnam according to the current foreign exchange management regulations (if any) into these accounts for purchasing securities;

d/ From the securities sale;

e/ From dividends, bond yields and relevant proceeds from the securities purchase and sale.

Expenditures:

a/ On the purchase of securities and expenses relating to the securities trading;

b/ On the purchase of foreign currencies for transfer overseas.

Article 6.- Purchase of foreign currencies for transfer overseas

1. After fulfilling tax obligations according to the provisions of Vietnamese laws, foreign organizations and individuals shall be entitled to use Vietnam-dong sources in their securities trading accounts to purchase foreign currencies from foreign custody members for transfer overseas.

2. Foreign organizations and individuals shall only be entitled to transfer their investment capital (involved in capital transactions) overseas one (01) year after such capital portion is remitted into Vietnam-dong securities trading accounts opened at foreign custody members, except for cases where it is so permitted by law.

For investment profits, dividends and bond yields (involved in current transactions), foreign organizations and individuals shall be entitled to transfer them overseas at any time.

Article 7.- Regulations on examination of vouchers

Foreign custody members, when performing revenue or expenditure operations on securities trading deposit accounts for foreign organizations and individuals, shall have to examine the following vouchers:

1. For revenue sources:

- For profits earned from direct investment in Vietnam: Copies of investment licenses, written records of the managing boards (or project executive boards, for business cooperation contracts) on the profit division (or turnover division, for business cooperation contracts) with certification by competent tax offices;

- For proceeds from the liquidation or dissolution related to foreign direct investment activities in Vietnam: Decisions on operation termination or dissolution of foreign-invested enterprises or decisions on invalidation of business cooperation contracts, written agreements of parties in enterprises (or those to business cooperation contracts) on the asset liquidation, the competent tax offices written certifications of fulfillment of financial obligations toward the Vietnamese State (if collected amounts are larger than capital amounts initially contributed);

- For case of capital transfer: Capital transfer contracts already certified by the competent authorities, the competent tax offices written certifications of fulfillment of financial obligations toward the Vietnamese State (if the capital transfer yields profits);

- Revenues from the supply of goods or provision of services: The competent tax offices written certifications of fulfillment of financial obligations toward the Vietnamese State;

- Wages, bonuses, lawful incomes of individuals: Depending on the nature of revenues, foreign organizations and individuals must produce the following documents: wage table under labor contracts or labor-employing agencies certifications of bonus amounts or competent authorities written certifications of legality of other revenues (donations, gifts, inheritance, lottery prizes, etc.)

2. For VND expenses for purchasing foreign currencies for transfer overseas: The competent tax offices� written certifications of fulfillment of financial obligations toward the Vietnamese State, for investments from securities at the securities trading centers.

3. For transfers of capital overseas: Transaction vouchers evidencing the time during which foreign organizations and individuals use such capital to purchase and/or sell securities at securities trading centers for at least one year.

Article 8.- Responsibilities of foreign custody members

1. Selling foreign currencies: When foreign organizations and individuals wish to purchase foreign currencies for transfer overseas, foreign custody members shall, depending on the banks foreign-currency sources, sell foreign currencies to such foreign organizations and individuals in compliance with the current foreign exchange management regulations.

2. Reporting: Monthly (By the 5th day of the following month at the latest), foreign custody members shall have to report to the State Bank (the Foreign Exchange Management Department) on:

a/ The situation of opening and closing Vietnam-dong securities trading accounts by foreign organizations and individuals at foreign custody members;

b/ The situation of operation of securities trading accounts and the situation of purchasing foreign currencies from foreign custody members for transfer overseas by foreign organizations and individuals;

c/ The situation of operation of securities custody accounts opened by foreign organizations and individuals at foreign custody members.

In case of necessity, foreign custody members shall have to supply information and report thereon at the State Bank’s requests.

Article 9.- Implementation provisions

1. This Decision takes effect 15 days after its signing. The amendments and supplements to this Decision shall be decided by the State Bank Governor.

2. The director of the Office, the director of the Foreign Exchange Management Department, the heads of the units under the State Bank; the directors of the State Bank’s branches in the provinces and centrally-run cities; the chairmen of the Managing Boards and the general directors (directors) the credit institutions licensed to conduct foreign exchange activities, foreign custody members and foreign organizations and individuals participating in the purchase and sale of securities listed at the Vietnamese securities trading centers shall have to implement this Decision.

 Form No. 01

REPORT ON THE OPEN, CLOSE OF SECURITIES TRANSACTION ACCOUNT IN VND OF FOREIGN ORGANIZATION, INDIVIDUAL AT FOREIGN DEPOSITING MEMBER
(report in month    /20......., from ........ to ...........)

To:  The State Bank of Vietnam
(the foreign exchange control department)

Form No. 02

REPORT ON OPERATION OF SECURITIES TRANSACTION ACCOUNT AND THE PURCHASE, SALE OF FOREIGN CURRENCY OF FOREIGN ORGANIZATION, INDIVIDUAL AT FOREIGN DEPOSITORY MEMBER

(report in month    /20......., from ........ to ...........)

To:  The State Bank of Vietnam
(the foreign exchange control department)

Note:

- II. 1.c: Receipts from securities transactions including gains from the sale of securities, receipt of dividends, bond’s interests...... in cash.

- II. 2.b: Payment of securities including payment for the purchase of securities, brokerage fee..... in cash.

Form No. 03

REPORT ON THE SECURITIES DEPOSITORY ACCOUNT OF FOREIGN ORGANIZATION, INDIVIDUAL AT FOREIGN DEPOSITORY MEMBER

(report in month    /20......., from ........ to ...........)

To: The State Bank of Vietnam
(the foreign exchange control department)

Note:

The value of securities calculated in VND shall be calculated by the quantity of securities multiplies with the closing price of those securities at the most recent transaction session by the reporting time.