What should investors keep in mind when buying and selling securities?

The State Securities Commission has recently issued some guidelines for investors participating in the stock market.

According to the State Securities Commission, understanding securities law will help investors comply with the law, protect their legitimate rights and interests; choose appropriate investment forms; avoid unnecessary violations due to lack of legal knowledge or investment risks in activities not protected by law. The following are some securities law regulations that investors should be aware of when participating in the stock market.

Basic rights and obligations of investors

The basic rights of investors can be summarized as follows: the right to buy, sell, hold, and transfer ownership of securities; to receive economic benefits from securities ownership such as dividends, bond interest, or profits from investment funds; to access information related to the issuing organization and listed organization in accordance with regulations on information disclosure; and to participate in the management and supervision of the issuing organization (for shareholders) such as attending the general meeting of shareholders and the investor meeting of the securities investment fund.

In addition to their rights, investors must comply with regulations on securities trading and securities activities, information disclosure, and anti-money laundering regulations; refrain from prohibited acts such as price manipulation, insider trading, or providing false information; disclose information as required; take responsibility for their investment decisions; and fulfill their financial obligations (pay the full amount for securities purchased on time and pay taxes and fees as required).

Investors buying and selling securities should be aware of the relevant regulations.

PHOTO: DAO NGOC THACH

How to participate in stock market investment

According to regulations, investors can invest in securities in the following forms: Directly investing and trading on the Vietnamese securities market (including investment in the primary and secondary markets) in accordance with securities and securities market laws; indirectly investing in the form of entrusting investment to a securities investment fund management company, a branch of a foreign fund management company in Vietnam, or entrusting the management of securities trading accounts to a securities company.

For direct securities trading: Investors trade securities on the securities trading system (including listed stocks, registered stocks, fund certificates, corporate bonds, secured warrants, and derivatives). Before trading, investors must open a securities trading account. Investors may open multiple securities trading accounts, but only one account per securities company, except in cases where the law stipulates otherwise (such as for foreign securities companies and fund management companies; insurance companies may open two securities trading accounts at each securities company...).

Investors can conduct transactions (place buy and sell orders for securities) through their securities trading accounts. However, in some cases where transactions cannot be carried out through the securities trading system, the law allows for transactions and transfers of ownership of securities outside the trading system (such as gifts, inheritances; transactions that cannot be executed through the securities trading system). Investors must have sufficient funds when placing buy orders for securities, except in cases of margin trading and foreign-established organizations participating in the Vietnamese securities market (foreign investors).

Investing in open-ended fund certificates: Investors buy, sell, and own certificates of one or more open-ended funds managed by a fund management company through an open-ended fund certificate trading account opened and managed by a distribution agent in cooperation with a transfer agent service provider. Unlike closed-end fund certificates which are listed on the trading system organized and operated by the Stock Exchange, Open-ended fund certificates are not listed on the stock exchange.

Entrustment of securities trading account management and investor investment entrustment:

In addition to directly participating in securities trading, investors can entrust a securities company to manage their securities trading account or entrust an investment fund management company to make investments on their behalf.

The entrustment of managing an investor's securities trading account is only permitted for individual investors. The provision of services to investors is carried out on the basis of a contract between the securities company and the individual investor, with a term not exceeding one year from the date of signing the contract; the securities company appoints a securities professional to manage the entrusted trading account.

Investment entrustment is when an investor (the entrusting party) entrusts a securities investment fund management company (the entrusted party) with full responsibility for the use of assets and capital to carry out investment activities for profit-making purposes, based on an investment entrustment contract. Based on the agreement between the two parties, the entrusted party is responsible for managing the investment portfolio, making investment decisions to ensure the required return and minimize risks. Investment entrustment activities are carried out through the signing of investment entrustment contracts as stipulated by the Securities Law…

Source: https://thanhnien.vn/nha-dau-tu-mua-ban-chung-khoan-can-luu-y-gi-185260429163021547.htm