Products/Services _ Stock Trading
Opening account procedure
First step for trading in Lao Securities Exchange (LSX), The Investors must Open Securities Trading Accounts with licensed securities companies as procedure bellows:

  • Step 1: Selecting a Securities Company
    • The Investors shall select one of licensed securities companies to act as their brokerage agent for assisting their trading transactions, currently there are three securities companies provide such services as follows:
    • (1) BCEL-KT Securities Company Limited (www.bcel-kt.com)
    • (2) LaneXang Securities Public Company (www.lxs.com.la)
    • (3) Lao-China Securities Company Limited (www.lcs.com.la)
  • Step 2: Selecting a Correspondent Bank
  • Step 3: Open a Bank Account and Securities Trading Account
    • All investors are required to open two types of accounts: 1) the Bank Account with a Correspondent Bank, 2) the Securities Trading Account with a Securities Company.
    • (1) Open a Bank account (current/saving account)
      • In case the investors already have a bank account with a correspondent bank, they can immediately use such account by notify the required details of the account to their securities company, otherwise, the investor shall open the bank account with a correspondent bank first;
      • In order to open a bank account, the investors shall fill out the application forms for opening the bank accounts with the correspondent bank and provide the required documents as needed. (Related fees are depending on each correspondent bank policy)
    • (2) Open a Securities Trading Account
      • The investor notifies a securities company of the bank account and request for account opening;
      • The investors shall fill out the application forms and provide the required documents and summit to the Securities Company;
      • Foreign investors are required to apply for foreign ID from LSX by providing the required documents and summit to the Securities Company;
      • A Broker Appointment Agreement with Securities Companies is required.
  • Step 4: Approval of Opening Securities Trading Account
    • The investors shall send all completed required application forms and documents to the chosen securities company to get the approval of opening securities trading accounts. This will take about 1 business day from the date of receiving an accurate and complete application form. After getting approval from securities companies, the investors shall receive the securities trading accounts numbers and passwords and shall be ready for trading.
Required Documents for Opening a Securities Trading Account

  • For Local Investor
    • Required document for Local individual:
      • - A Photocopy of an identity card or passport;
      • - A photo copy of passbook issued by correspondent bank;
      • - A Broker Appointment agreement for opening securities trading account by securities companies;
      • - Authorized application (if any).
    • Required document for Local Entity:
      • - A photocopy of the board of directors’ resolution for opening a securities trading account;
      • - A photocopy of the director’s identity card (clear photo), certified true copy by the identity card’s owner;
      • - A photocopy of an authorized signer’s identity card (clear photo), certified true copy by the identity card’s owner (in case, the authorized person is not the director);
      • - A photocopy of authorized trader’s identity card (clear photo), certified true copy by the identity card’s owner (in case, the authorized trader is not the Director);
      • - A photocopy of the business license or article of incorporation (Fund), certified true copy by the authorized director’s signature and company seal;
      • - A photocopy of article of association; certified true copy by the authorized director’s signature and company seal;
      • - A photocopy of passbook issued by correspondent banks;
      • - Agreement for opening securities trading account by securities companies;
      • - A photocopy of Business License certified true copy by the authorized director’s signature and company seal;
      • - A photocopy of passbook issued by correspondent banks;
      • - Photocopy of Broker Appointment agreement (02 copies)
  • Remark:
    • In case of the Local entity delegating a staff to open a securities trading account on its behalf; the additional required documents are as follows:
      • - A copy of a power of attorney authorized such staff to open a securities trading account on behalf of the entity signed by the authorized director with company seal;
      • - A photocopy of an identity card (clear photo), of the staff who has been delegated to open the securities trading account.
  • For Foreign Investor
    • Required document for foreign Individual Investor:
      • - Application form as designated by securities market.
      • - A photocopy of a passport (clear photo), signed by the passport’s owner.
      • - A photo copy of passbook issued by correspondent bank.
      • - Photocopy of Broker Appointment agreement with securities companies (02 copies).
    • Required document for foreign entity:
      • - A photocopy of the board of directors’ resolution for opening a securities trading account.
      • - A photocopy of the list of directors or authorized directors.
      • - A photocopy of the director’s passport (clear photo) certified true copy by the passport’s owner.
      • - A photocopy of an authorized signer’s passport (clear photo) certified true copy by the passport owner (in case, the authorized signer is not a director).
      • - A photocopy of an authorized trader (clear photo) certified true copy by the passport’s owner (in case, authorized is not director).
      • - A photocopy of the business license or article of incorporation (Fund), certified true copy by the authorized director’s signature and company seal.
      • - A photocopy of an article of association, certified true copy by an authorized director’s signature and company seal.
      • - A photocopy of passbook issued by correspondent bank.
      • - Photocopy of Broker Appointment agreement with securities companies (02 copies).
  • Remark:
    • In case of assigning staff to open securities trading account, the additional required document are as follows:
      • - A copy of power of attorney authorized staff to open a securities trading account signed by the authorized director with company seal;
      • - A photocopy of an identity card (clear photo), of the staff who has been delegated to open the securities trading account.
  • Foreign Investment Limitation
    • EDL-Gen:
      • Total foreign Investor can buy stock in the ratio of not exceed 25% of the total share amount of a listed company.
      • A foreign investor can buy stock in the ratio of not exceed 1% of the total share amount of a listed company
      • A foreign institution can buy stock in the ratio of not exceed 5% of the total share amount of a listed company.
    • BCEL:
      • Total foreign Investor can buy stock in the ratio of not exceed 20% of the total share amount of a listed company
      • The foreign and the institution investor can buy stock in the ratio of not exceed 2% of the total share amount of a listed company
    • Both foreign individual and institution investor can buy stock of LWPC, PTL, SVN, PCD, LCC, MHTL, LAT, VCL and LALCO with no limitation (100%)