CORPORATE CLIENTS need to open up both securities account and settlement account to trade on Mongolian Stock Exchange.
In order to open a corporate securities account with BDSec, a client must complete below forms and documents:
1. Account opening request letter of SCH&CD (download link)
2. Account opening form of SCH&CD (download link)
3. Notarized passport copies of authorized signatories **Authorized signatory (s) refers to a person (s) who is officially appointed by the account opening institution (legal entity) to be in charge of future activities in relation to the account such as repatriating funds off the account and placing buy/sell orders for the account.
4. Appointment order for authorized signatories /2 copies/ (download link)
5. A document/letter demonstrating that the appointing person is legally eligible to appoint authorized signatories. /2 copies/
6. Notarized form of signature and stamp confirmation for authorized signatories /2 copies/ (download link)
7. Notarized copy of the institution’s certificate of incorporation /2 copies/
In order to open a corporate settlement account with Golomt bank, a client must send us below forms and documents.
8. Application for corporate bank account (download link)
9. Authorized signatories’ information (download link)
10. Settlement account opening agreement /2 copies/ (download link)
11. A reference letter from a bank in which the entity has an account UNLESS all the notarization is done by the Embassy of Mongolia
Please note:The forms are considered valid WHEN fully filled out and signed by the client.
If you need clarifications on required documents or assistance filling out the forms, please refer to ACCOUNT OPENING FAQ/CORPORATE below or contact us directly at email@example.com
Sending original documents by mail:
All paperwork must be delivered in original copy via courier. However, we highly recommend you to let us review your documents by email before mailing the original copies to avoid accuracy-related delays in the account opening process
BDSec Joint Stock Company 27/1, Zaluuchuudavenue, Sukhbaatar District, Ulaanbaatar City, Mongolia. (Mongol Post, Branch 46, Box 844)
Attn: Institutional Clients Department, BDSec JSC
ACCOUNT OPENING FAQ/CORPORATE
Is there account opening fee for BDSec JSC?
Yes.Our account opening fee is US$50 for corporate client. After the account is opened, a client can either send us in cash along with the account opening documents OR transfer it to our bank account:
Beneficiary’s name: BDSec Joint Stock Company
Beneficiary’s account number: 1501064960
Beneficiary’s bank: Golomt Bank of Mongolia
The bank address: Great Chinggis Khaan’s Square 5, P.O.Box 22, Ulaanbaatar 15160, Mongolia
SWIFT code: GLMTMNUB
How much is the commission fee?
Commission for corporate client is 2.5%-3% per trade, and it includes MSE (Mongolian Stock Exchange), SCH&CD (Securities Clearing and House Central Depository), FRC (Financial Regulatory Commission), and BDSec JSC fees.
What is securities account?
Securities account is resided in Mongolian SCH&CD, a state owned entity that registers and keeps your securities safe. SCH&CD also currently executes securities clearing for stocks and government bonds.
Can I get online account service for my securities account?
You can get online account service for your securities account. Please fill out, scan, and email SCH&CD online service form to your broker. Online service costs MNT8000. The online service allows you to check your detailed securities purchase history and current securities balance.
What is settlement account?
The settlement account is held in Golomt Bank of Mongolia which is one of the top 3 banks in Mongolia and our cash settlement bank. The settlement account is MNT (Mongolian Tugrug) denominated and will be used for cash settlement purpose. Settlement account maintenance fee for corporate client is MNT1500 per quarter (MNT6000 annually). Corporate clients must keep at least MNT 20,000 in the settlement account as a minimum balance. The settlement account pays annual interest of 3.6% on balances over MNT 10 million.
Can I get online account service for my settlement account?
You can get online account service for your settlement account. Please fill out, sign and email Golomt Bank’s Internet banking service (Corporate)form to your broker. The settlement account online service is free of charge. The service allows you to check your cash transaction history and current balance. However, you cannot withdraw cash from your settlement account using online service. If you wish to withdraw cash, please refer to How do I withdraw cash from my settlement account? in the FAQ.
How do I fund my settlement account?
After the settlement account is opened, a client shall fund the settlement account from their home country according to the instruction& account detail provided in the account confirmation letter sent by the broker. A client’s foreign currency cash transfer will be converted to MNT (Mongolian Tugrug) automatically by the Golomt bank’s announced exchange rate on the transfer date.
How do I withdraw cash from my settlement account?
A client shall fill out, sign and mail original International remittance order form via courier to BDSec in order to withdraw cash from their settlement account at Golomt Bank.
I mailed my account opening documents via courier, now what?
Account will be opened within 3 business days after VALID documents are received. A client shall expect account confirmation letter in the email as soon as the account is opened.
My accounts are opened, how do I place an order now?
In order to place an order, please fill out and sign Order form and email it to firstname.lastname@example.org or to your broker’s designated email. Please note: Settlement account has to be prefunded before placing an order, but settlement is made on T+1. Therefore, before placing an order, make sure you have sufficient cash in your settlement account to cover the trade value including 2.5% commission fee. The settlement is made in T+1. If your order gets executed, you will receive trade confirmation in T+0 and settlement confirmation on T+1 basis.
- Application for corporate account - download
- Authorized signatories’ information - download
- Settlement account opening agreement - download
- Notarized copy of an authorized signatory form - download
- A reference letter from a bank in which the entity has an account UNLESS all the notarization is done by the Embassy of Mongolia
- If the entity is a U.S. taxpayer, FATCA related forms must be completed - download 1 & download2