INDIVIDUALS MAY ONLY MAKE OFFSHORE INDIRECT INVESTMENT IN THE FORM OF BONUS PROVISION OF STOCKS
Under the Decree No. 135/2015/ND-CP dated December 31, 2015 of the Government prescribing offshore indirect investment, individual investors who have the Vietnamese citizenship may only make offshore indirect investment in the form of participating in programs on bonus provision of overseas issued stocks.
Offshore indirect investment activities of economic institutions shall be carried out by the following methods: Offshore indirect investment dealing and offshore indirect investment trust. Accordingly, institutional dealers and trustees may make offshore indirect investment in the following forms: direct purchase and sale of securities and other valuable papers overseas; Investment through overseas purchase and sale of securities investment fund certificates or entrustment to other overseas intermediary financial institutions...
For capital sources for offshore indirect investment, institutional dealers (except commercial banks and general financial companies) may use the core foreign-currency balance of their accounts and foreign-currency amounts purchased from credit institutions or foreign bank branches licensed to provide foreign exchange services in Vietnam within their registered dealing limits certified by the State Bank of Vietnam for offshore indirect investment; Institutional trusters (except commercial banks and general financial companies) may only use the core foreign-currency balance of their accounts for offshore indirect investment in the form of trusting institutional trustees.
Particularly, investors may not use Vietnam-dong loans from credit institutions or foreign bank branches to purchase foreign currencies for offshore indirect investment.
This Decree takes effect on February 15, 2016.
