DERIVATIVE INVESTMENT CONSULTANCY COMPANY MUST HAVE AT LEAST VND 250 BILLION OF CHARTER CAPITAL
The Decree No. 158/2020/ND-CP on derivatives and the derivatives market is promulgated by the Government on December 31, 2020.
According to this Decree, a securities company may be granted a Certificate of eligibility for derivative business when meeting the following conditions on charter capital and equity: at least VND 800 billion for derivative brokerage; at least VND 600 billion for derivative dealing; at least VND 250 billion for derivative investment consultancy.
Additionally, such securities company must have minimum liquidity ratio of 220% for the past 12 consecutive months; fully set up the provisions as prescribed by law provisions, have no loss in the last 02 years, etc.
To add the application of price fluctuations, market circuit breakers to market stabilization measures. The Stock Exchange may partially or wholly suspend or resume derivative trading operations after obtaining approval from the State Securities Commission.
This Decree takes effect on January 01, 2021.
