What are regulations on indirect investment capital accounts on securities market in Vietnam?

According to Article 3 of Circular 51/2021/TT-BTC, the regulations on indirect investment capital accounts in Vietnam are as follows:

1. Each foreign investor shall be allowed to open 01 indirect investment capital account at 01 custodian bank obtaining the license for foreign exchange trading in order to perform indirect investment activities in Vietnam’s securities market. Each issuer of depositary receipts in a foreign country shall be allowed to open 01 indirect investment capital account at 01 custodian bank obtaining the license for foreign exchange trading in order to issue or cancel depositary receipts and perform other relevant activities in accordance with regulations of law.

2. When receiving trust capital as prescribed in Point b Clause 1 Article 138 of Decree No. 155/2020/ND-CP, fund management companies or branches of foreign fund management companies in Vietnam shall be allowed to open indirect investment capital accounts to receive capital from foreign investors that do not have indirect investment capital accounts. In this case, indirect investment capital accounts shall be opened in the names of fund management companies or branches of foreign fund management companies in Vietnam.

3. All activities such as transmitting money to perform transactions or investments and make payments relating to securities investment activities of foreign investors and activities of issuers of depositary receipts in foreign countries, receiving and using dividends or distributed profits, or buying foreign currency for the purpose of remitting them to foreign countries (if any) and other relevant transactions must be carried out through indirect investment capital accounts.

4. Opening, closing, use and management of indirect investment capital accounts must comply with law regulations on foreign exchange management.

Best Regards!