Decision issued to regulate OTC transactions
Decision issued to regulate OTC transactions
The Ministry of Finance issued Decision No 108/2008/QD-BTC on November 20, regulating the trading of unlisted securities at the Ha Noi Securities Trading Centre (HASTC), otherwise known as the "over-the-counter" (OTC) market.
The regulation requires that OTC transactions must be conducted via registered securities companies and reported to the HASTC for public disclosure of the trading results.
The regulation provides for electronic and negotiated trading in unlisted securities. For the former, a trading agent places orders in the HASTC system based on determined conditions, similar to transactions in listed securities. For the latter, a buyer and seller agree directly on the conditions of the transaction, after which a trading agent confirms the transaction in the HASTC registration system.
An investor is limited to a single trading account for trading in unlisted shares, and this account may be the same one used for trading in listed shares.
The 49-per-cent cap on foreign ownership of listed shares does not apply to unlisted shares, although the regulation leaves the issue open to further decision by the Prime Minister.
Public companies that have already registered to offer shares on the OTC market must register for securities depository with the State Securities Commission within six months of the effective date of the regulation.
Housing for industrial park workers encouraged
Investors will be offered special incentives to develop accommodations for workers in industrial parks, under a draft strategy formulated by the Ministry of Planning and Investment’s Central Institute for Economic Management.
The proposed incentives, which would apply to both domestic and foreign investors without discrimination, include exemption of land rent, reduction of corporate income tax (CIT) and access to soft loans and Government financial support for site clearance.
For instance, investors who provide accommodation for industrial park workers would be entitled to pay CIT at a rate of 10 per cent for 15 years. In addition, they would be exempt from the tax altogether for the first four years, and enjoy a 50-per-cent reduction in tax liability for the subsequent nine years.
The draft strategy has been sent to the Prime Minister for approval. It would also require provincial-level People’s Committees to plan suitable sites for developing housing for industrial park workers.
Viet Nam News
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