FOREIGN INVESTOR IS NOT ALLOWED TO CONDUCT MARGIN TRADING
The Circular No. 120/2020/TT-BTC is issued on December 31, 2020 by the Ministry of Finance on transaction of listed shares, registration of transactions and fund certificates, corporate bonds, covered warrants listed on the securities trading system.
Specifically, for each securities trading account, the investor is only allowed to open 01 clearing margin account at the clearing members. The securities investment fund management company is allowed to open many trading accounts at each securities company in the following principles:
Firstly, 01 securities trading account is open to carry out its own securities trading activities;
Secondly, 02 securities trading accounts are opened to manage investment items of entrusting investors, in which, 01 account serves securities trading activities of domestic entrusting investors and another account serves securities trading activities of foreign entrusting investors;
Thirdly, each investment fund, securities investment company managed by the fund management company may open 01 securities trading account in the name of the investment fund or securities investment company at each securities company.
Noticeably, foreign investor is not allowed to conduct margin trading. The investor is allowed to open the only one margin trading account at each securities company where the investor’s securities trading account is opened.
This Circular takes effect on February 15, 2021.
