New circular on securities-related service prices issued
Updated : Monday, January 07, 2019 9:51 AM (GMT+0700)

The Ministry of Financehas issued new securities-related service regulations for trading organisationsand commercial banks doing business in Vietnam’s stock market.

 
Illustrative image - Source: VNA

The new circular, No 128/2018/TT-BTC, replaced Circular No242 dated November 11, 2016 setting price frameworks.

Overall, the maximum service prices remain unchanged.However, the new regulation adds charges in the derivatives market.

For the underlying stock market, the price of underwritingservice for State-owned enterprises carrying out equitisation is between 0.5percent and 2 percent of the total value of shares issued through a guaranteedoffering.

The maximum price of brokerage service to buy/sell shares orfund certificates (including listed securities and securities registered fortrading) is 0.5 percent of trading value. The brokerage service price for divestmentof State capital shall not exceed 0.03 percent of trading value and not go over3 billion VND per transaction.

The service price of managing public securities investmentfunds or public securities investment companies shall not exceed 2 percent ofthe net asset value (NAV) of the fund or the portfolio per year.

The ceiling price of service of issuance of certificates ofopen-end funds or exchange-traded funds (ETFs) is 5 percent of trading value,while the price of service of redemption or switch of certificates of open-endfunds or EFFs shall not exceed 3 percent of trading value.

Regarding share auctions, price of service will be from 20million VND per auction of shares or each type of securities to 0.3 percent oftotal value of securities actually sold out.

For the derivatives market, price of brokerage services forfutures contracts is up to 15,000 VND per index and up to 25,000 VND pergovernment bond. These prices do not include the service prices for trading,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, securitiestrading companies and commercial banks may themselves decide the prices oftheir services but must comply with the Law on pricing and relevant laws.

Prices of securities-related services are not subject tovalue-added tax. Providers of services must clearly announce prices of theirservices.

The new regulation takes effect on February 15 this year.

Source: VNS/VNA

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