Currently, many people 17 years old or even younger want to participate in the stock market. So, in this case, does the law allow people under 18 to register for a securities account? If not, how does the law regulate the age of securities investors? So, in this article, LSX legal firm will answer the question: “Can people under 18 years old invest in securities in Vietnam?”
Legal ground
- Law on Securities 2019
Can people under 18 years old invest in securities?
According to current regulations, individuals under the age of 18 can not invest in the stock market. However, in the case of the draft Circular guiding stock trading; fund certificates; corporate bonds; Registering for trading on the securities trading system officially approved, Individuals under 18 years old can invest in securities.
Accordingly, for people from full 15 years old to under 18 years old, who do not lose or have limited civil act capacity, approved by the legal representative to open a trading account, then they can become investors as private individuals open trading accounts at securities companies.
Market research in other developed countries shows that individuals open an account and participate in stock trading at a quite early age. At the age of 15, the labor law also allows individuals to enter into labor contracts and earn a certain amount of income based on their own work.
This brings a good sign and helps young people somewhat in financial awareness and better financial management. From there, they have the right future orientation and create many development opportunities for themselves.
In addition, the investment of the management agency, the exchange, and the increasingly developed information technology system will promote a smooth transaction process on a large scale, safe and convenient.
The age to register to open a securities account
Individuals as citizens aged full 18 years or older and have full civil act capacity can register to open securities accounts at securities companies in accordance with Vietnamese law.
With the rapid development of this investment channel, the stock market now has more than 70 securities companies operating on the market. Accordingly, investors can freely choose a securities company to open an account. However, for each securities company, you can only open one trading account. Besides, the law does not limit the number of accounts opened at different securities companies. When having a need to open a securities trading account, you can go directly to the branch and transaction office of the securities company to complete the registration procedures with the brokerage staff. In case you can’t go directly to the company’s headquarters, you can open an online account yourself at home through the app; or the website of the securities company.
Principles of opening a securities trading account
Circular 120/2020/TT-BTC stipulates the principles of opening securities trading accounts. Accordingly, each individual investor can only open one account at each securities company. Securities companies may open securities trading accounts according to the following principles:
- The securities company that engages in proprietary trading and is a member of the VSE is allowed to open only 01 proprietary trading accounts right at such securities company and is not allowed to open any securities trading account at other securities companies, except for the case in item 4 below.
- If the securities company cancels its membership of the VSE, it may use a securities trading account at another securities company that is a member of the VSE to handle the remaining securities on the proprietary trading account.
- The securities company is allowed to open 01 market-making accounts for the listed and registered securities and 01 secured warrant hedging account at such a company to carry out transactions for these operations.
- The securities company that is not a member establishing the exchange-traded fund (ETF) is allowed to open a securities trading account at the member establishing the exchange-traded fund, This account is used to exchange ETF certificates on the primary market and sell ETF certificates on the secondary market with respect to component securities and ETF certificates obtained from the exchange and purchase of component securities and ETF certificates on the secondary market to carry out exchange transactions, and not used to carry out other securities transactions.
- Other securities trading accounts prescribed by law.
Operations of securities company
Currently, the Law on Securities stipulates 07 forms of the securities business (4 main forms popular in Vietnam). According to Article 72 of the Law on Securities 2019; the business operations of a securities company include one or several of the following activities:
- Stockbroker: act as an intermediary to buy and sell securities for customers.
- Securities trading: A securities company buying or selling securities for itself.
- Underwriting securities: a form of the securities business in which an enterprise will make a commitment to a securities issuer to carry out procedures before offering securities, purchase a part or all of the securities issued by the issuer.
- Consulting on securities investment: Enterprises perform analysis of problems related to securities that customers intend to invest in.
In addition to 04 popular forms of securities business above; companies also carry out a number of business operations such as: securities depository; securities investment fund management; stock portfolio management.
According to Clause 1, Article 85 of the Securities Law 2019; During its operation, a securities company is required to comply with the conditions of charter capital, shareholder status, facilities, human resource, etc.
Legal service of LSX Legal Firm
LSX legal firm provides legal services to clients in various legal areas. To make your case convenient, LSX will perform:
- Legal advice related to new regulations in business suspension;
- Representing in drafting and editing documents;
- We commit the papers to be valid, and legal for use in all cases;
- Represent to submit documents, receive results, and hand them over to customers.
With a team of experienced, reputable, and professional consultants; The firm is always ready to support and work with clients to solve legal difficulties.
Furthermore, using our service, you do not need to do the paperwork yourself, We guarantee to help you prepare documents effectively and legally.
Also, you will not have to waste time preparing the application, submitting application, or receiving results. At those stages, we will help you do it smoothly.
After all, LSX provides the service with the desire that customers can experience it the best way. Additionally, we guarantee the cost to be the most suitable and economical for customers.
Related articles
- Regulations for professional investors in securities in Vietnam
- What to do when invited to play securities in Vietnam but lost everything?
- Private placement of securities in accordance with the laws of Vietnam
Related questions
“securities” include the following assets:
a) Shares, bonds, fund certificates;
b) Warrants, secured warrants, pull options, depository receipts;
c) Derivatives;
d) Other kinds of securities defined by the Government.
Bonds means securities that certify their holders’ lawful rights and interests to part of the debt of the issuer.
Shares means securities that certify their holders’ lawful rights and interests to a portion of share capital of the issuer.
Contact LSX
Finally, hope this article is useful for you to answer the question about “Can people under 18 years old invest in securities in Vietnam?”. If you need any further information, please contact LSX Law firm: +84846175333 or Email: [email protected]
Conclusion: So the above is Can people under 18 years old invest in securities in Vietnam?. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com
