The Vietnam State Securities Commission published updates on a Ministry of Finance circular amending the framework for securities registration, custody, clearing and settlement, and stock market disclosure, including revised rules for foreign institutional investors that buy shares without having to pre-fund at order entry (NPF). The amendments take effect from 05 May 2025. For NPF trades, the point by which the investor must have sufficient funds is unchanged from the prior regime: funds are required before the time the depository member must have sufficient money in its settlement deposit account at the settlement bank on settlement day (no later than 10:15 on T+2 under Vietnam Securities Depository and Clearing Corporation rules). Securities firms remain responsible for ensuring settlement on the morning of T+2 if an NPF investor fails to pay, to avoid failed trades. The circular also introduces changes described as more protective of NPF investors, including that trades confirmed as paid on the afternoon of T+1 will be settled without being deferred or cancelled, and that foreign ownership room is retained for an NPF investor that is short of funds on T+2 through the end of T+3 if the investor confirms it will fully pay the securities firm. It further standardises implementation across securities firms by allowing NPF buy orders across all listed and registered-trading shares except those for which securities firms are prohibited from accepting buy orders under the relevant provision of Circular 121/2020 as amended, and removes an Appendix XVII disclosure requirement relating to authorised representatives of NPF investors.
Vietnam State Securities Commission 2025-04-28
Vietnam State Securities Commission publishes Ministry of Finance amendments to settlement and disclosure rules for non-prefunding foreign institutional investors
The Vietnam State Securities Commission updated a Ministry of Finance circular amending the framework for securities registration, custody, clearing and settlement, and stock market disclosure, effective 05 May 2025. Key changes include maintaining the fund requirement timing for non-pre-funded (NPF) trades and introducing measures to protect NPF investors, such as ensuring trades confirmed as paid on T+1 are settled without deferral or cancellation. The circular also standardizes NPF buy orders across all listed shares, except where prohibited, and removes an Appendix XVII disclosure requirement.