New update on stock upgrade progress, notable news at the beginning of the week

Some of the rules relating to the upgrade will come into effect immediately, which is crucial for the upcoming FTSE stock market classification review.

The process of upgrading the stock market is still taking place actively, waiting for the classification results in early October - Photo: QUANG DINH

Major changes to the stock market take effect immediately

Accordingly, Circular 25, newly issued by the State Bank, has supplemented the contents of Article 6 and a number of related provisions of Circular 17, aiming to facilitate the opening and use of payment accounts for foreign investors who are non-residents when conducting indirect investment activities in Vietnam.

What is special is that while many other provisions will take effect from March 1, 2026 or December 1, 2025, the content in Article 6 and related provisions will take effect immediately upon signing and promulgation of the Circular (from August 31, 2025).

Specifically, in Article 6, Circular 25 has added regulations allowing foreign investors conducting indirect investment activities in Vietnam to authorize financial institutions to open, close and use payment accounts.

Banks and foreign bank branches are required to identify foreign investors and authorized organizations in accordance with the law on anti-money laundering.

A very important point in the new Circular is that Article 6 has removed the requirement for consular legalization in the application for opening a payment account of a foreign investor.

Furthermore, the types of documents that foreign investors can use for identification are expanded: Instead of passports, foreign investors can use other documents proving their identity issued by competent foreign authorities.

Not stopping there, another major change is at point c, clause 2, Article 6 of Circular 25 clearly states: "The provisions at point b, clause 1, Article 5; clause 3, Article 19; point b, clause 2, Article 21 of this Circular do not apply".

This means that banks and foreign bank branches do not have to monitor the validity period of identity documents of account holders and related persons during the use of payment accounts.

At the same time, banks and foreign bank branches are not required to keep and update all signature samples and seal samples (if any) of registered customers for checking and comparison during the use of payment accounts.

Along with that, Circular 25 also allows banks and foreign bank branches to use the SWIFT system to open and use payment accounts for foreign investors to carry out indirect investment activities in Vietnam.

On the other hand, in Clause 2, Article 7, the new Circular also allows opening foreign currency payment accounts by electronic means.

In addition, another new point is that Clause 2, Article 8, Circular 25 does not require biometric information verification when withdrawing money or making electronic payment transactions on payment accounts.

Time to open an official indirect investment account is shortened and convenient

With the process of opening a foreign investor's securities investment account, after opening an electronic securities transaction code (e-STC) at VSDC, a securities trading account will be opened at a securities company and an indirect investment account at a custodian bank after being granted an electronic securities transaction code.

The time for VSDC to issue e-STC is 1 day and the time to open a trading account at the securities company is also 1 day after receiving e-STC.

Meanwhile, opening an indirect investment capital account at a custodian bank previously had regulations in the laws of credit institutions and guiding documents requiring consular legalization, regulations on having to meet in person when KYC customers, not recognizing the role of global custodian banks and the use of SWIFT messages... so this process took a lot of time.

However, the State Bank has issued Circular 03 regulating the opening and use of Vietnamese Dong accounts to carry out foreign indirect investment activities in Vietnam.

Then, Circular No. 25 continued to be a major change when the regulations on opening payment accounts at payment service providers were amended and supplemented in accordance with international practices.

Many organizations and experts have expressed optimism that the Vietnamese stock market will be upgraded by FTSE in the next classification period.

BINH KHANH

Source: https://tuoitre.vn/cap-nhat-moi-tien-trinh-nang-hang-chung-khoan-tin-dang-chu-y-dau-tuan-20250908083651461.htm