In all investment activities in the fields, there must be investors with their own assets or assets contributed as capital. As for the stock market, investors will invest with their own assets; and in the Securities Law 2019 stipulates that investors are mainly commercial banks, financial companies, and financial institutions. main,…. The following article of Lawyer X will share with you the legal regulations on securities professional investors. Hope this article brings a lot of useful things to you.
Legal grounds
Securities Law 2019
Decree 155/2020/ND-CP
What is a professional stock investor?
In the Securities Law 2019, securities investment is the purchase, sale; and holding of securities by investors on the stock market.
Stock market (in English, stock market or securities market) is understood as a collection of buyers; and sellers of securities or shares. In it, shares can be classified according to the country where the company/enterprise issuing shares is located.
Securities and securities market activities, including offering, listing, trading, trading, investing in securities, providing services on securities, disclosing information, and managing public companies; and other activities specified in Clause 14 of Article 14 of the Securities Law 2019.
In securities activities and securities investment, there will be investors and investors must be professionals with this job. So what is an investor to be understood? According to the provisions of the Securities Law 2019 specifically in Article 11 professional securities investors are investors with financial capacity or professional qualifications in securities; including both institutional investors and investors personal investment.
To participate in the stock market, investors must have the core knowledge, need to build themselves a system of practical information, and need to equip themselves with important things that are important to them. This can include basics like:
- Capital to invest in securities: Capital or investment money is one of the essential factors to invest in securities. Investors need to learn about the amount of capital they need; and then prepare a certain amount of capital because the amount of capital will depend a lot on the amount of assets they own; the level of risk and expectations profit earned.
- Supporting devices: When investing in the stock market, owning a smart device used to support such as smartphone; tablet or laptop is very necessary because for electronic investment activities such as securities; and securities on the exchange, all activities take place in the form of smart devices between the organization and the customer. Therefore, these devices help ensure that investors can make transactions in the fastest and most timely manner, and at the same time help you update the fastest market information.
Regulation of professional securities investors
- Information about securities: Knowing well about information on the stock investment market is an indispensable factor in other words; it is necessary to learn new information to be able to make a decision whether to invest in securities. bond or not. Nowadays, thanks to the development of information technology, you can find sources of information about securities on the Internet easily. Therefore, before starting to play the stock market, investors should update accurate, multi-dimensional; and in-depth information sources from the experience of previous investors or from companies/enterprises about their investments. important financial information.
- Knowledge of securities: The stock market is an investment channel with quick and good profit. However, high profits will always come with associated risks that are difficult to predict in advance. Therefore, cultivating knowledge about securities, always looking for new knowledge in securities activities is extremely necessary and important for investors.
Thus, from the above content, it can be seen that securities are now known as a place of investment and profitable activities that the subjects of securities participation are non-discriminatory. In order to have a stock exchange; there must be a professional securities investor who must have sufficient financial capacity to operate. In addition, in order to develop the stock market; investors must also learn about the potential of customers participating in exchanges to make profitable investments.
Who are professional stock investors?
The Ministry of Finance said that Article 11 of the Law on Securities No. 54/2019/QH14 dated November 26, 2019 stipulates the concept of professional securities investors including: both professional institutional investors and investors professional private.
Accordingly, professional individual investors are determined according to the following criteria: holder of a securities practice certificate; an individual holding a list of securities listed or registered for trading with a value of at least VND 2 billion as certified by a securities company at the time that individual is identified as a specialized securities investor.
At the same time, an individual with a taxable income of at least VND 1 billion in the latest year by the time that individual is determined as a professional securities investor according to the tax return submitted to the tax authority; or tax withholding documents of paying organizations or individuals.
Decree No. 155/2020/ND-CP dated December 31, 2020 of the Government detailing the implementation of a number of articles of the Law on Securities has provided guidance on how to identify professional investors participating in the purchase of securities when conducting a private placement; registering to establish a member fund or authorizing a securities company to identify professional securities investors; specifically in Article 4 – Determination of securities investor status professional and Article 5 – Documents identifying professional securities investors.
Clause 3, Article 4 of Decree No. 155/2020/ND-CP also stipulates that the validity period of certification of professional individual investor status is 1 year. At the same time, on May 18, 2021, the State Securities Commission issued Official Letter No. 2098/UBCK-PTTT to securities companies, requesting guidance for professional investors to participate in contract product trading 10-year government bond futures.
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- Conditions for securities offering according to Vietnamese law
Frequently asked questions
For privately issued securities that are traded centrally on the trading system of the Stock Exchange, the securities company where the investor makes the securities purchase transaction is responsible for determining the status of a specialized securities investor. Karma
For privately issued securities that have not been centrally traded, the registration or depository organization is responsible for determining the status of a professional securities investor before transferring ownership.
There are two types of Corporate Bonds: Privately Issued Corporate Bonds and Publicly Issued Corporate Bonds.
According to the new provisions of the Securities Law 2019 on professional investors, effective from January 1, 2021, corporate bonds issued by private placement are only sold to professional investors.
In addition, Corporate Bonds issued to the public are widely offered to all types of investors and are licensed by the State Securities Commission for sale; required businesses to be profitable.
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