HANOI, Jan 18 (Reuters) - Vietnam's legislature on Thursday approved new rules that lower the maximum stake investors can hold in domestic banks, a move aimed at reducing risks of market manipulation.

Under the reform, which will take effect from July this year, institutional shareholders, such as investment or pension funds, will be allowed to hold up to 10% of a bank's equity, down from the current 15% limit. (Reporting by Phuong Nguyen and Francesco Guarascio; Editing by Martin Petty)