Illustrative image (Source: VNA)Hanoi (VNS/VNA) - The Ministry ofFinance has issued new securities-related service regulations for tradingorganisations and commercial banks doing business in Vietnam’s stock market.
The new circular, No 128/2018/TT-BTC, replacedCircular No 242 dated November 11, 2016 setting price frameworks.
Overall, the maximum service prices remainunchanged. However, the new regulation adds charges in the derivatives market.
For the underlying stock market, the price ofunderwriting service for State-owned enterprises carrying out equitisation isbetween 0.5 percent and 2 percent of the total value of shares issued through aguaranteed offering.
The maximum price of brokerage service to buy/sellshares or fund certificates (including listed securities and securitiesregistered for trading) is 0.5 percent of trading value. The brokerage serviceprice for divestment of State capital shall not exceed 0.03 percent of tradingvalue and not go over 3 billion VND per transaction.
The service price of managing public securitiesinvestment funds or public securities investment companies shall not exceed 2 percentof the net asset value (NAV) of the fund or the portfolio per year.
The ceiling price of service of issuance ofcertificates of open-end funds or exchange-traded funds (ETFs) is 5 percent oftrading value, while the price of service of redemption or switch ofcertificates of open-end funds or EFFs shall not exceed 3 percent of tradingvalue.
Regarding share auctions, price of service will befrom 20 million VND per auction of shares or each type of securities to 0.3 percentof total value of securities actually sold out.
For the derivatives market, price of brokerageservices for futures contracts is up to 15,000 VND per index and up to 25,000 VNDper government bond. These prices do not include the service prices fortrading, management of derivative positions, security deposits which securitiescompanies must pay to the stock exchanges and the Vietnam Securities DepositoryCentre.
For the services not prescribed in the circular,securities trading companies and commercial banks may themselves decide theprices of their services but must comply with the Law on pricing and relevantlaws.
Prices of securities-related services are notsubject to value-added tax. Providers of services must clearly announce pricesof their services.
The new regulation takes effect on February 15this year.-VNS/VNA
