Illustrative image (Source: VNA)Hanoi (VNA) - An update onthe securities law this year focuses on nine targets in the hope of giving aboost to the development of the securities market as well as the broaderfinancial sector.
The 2006 Securities Law, amended forthe first time in 2010, was introduced in the context of the small-scaledsecurities market. The law has created the legal corridor to enable the stockmarket to grow in the past 11 years but is also gradually exposing shortcomingsalong with its rapid expansion.
These are requirements for informationdisclosure, market manipulation, investigative and supervisory authority of themarket watchdog, as well as foreign-ownership-related regulations.
Since early last year, market insidershave sought more amendments to meet demand for a more sophisticated securitiesmarket. In 2018, the State Securities Commission (SSC) is tasked with buildingthe revised Securities Law, which should be submitted for the NationalAssembly’s review in the sixth meeting in October.
The updated law is expected to focus onnine targets.
First, it will standardize theconditions, dossiers and procedures for offering and listing each type ofsecurities; and improve the quality of public companies by adjusting thecriteria of public companies, thereby enhancing the quality of goods on thestock market.
Second, it clearly defines theorganizational structure, operation, functions, tasks and obligations of stockexchanges; and specifies the areas of the stock market, bond market andderivatives market.
Third, it identifies the organizationalstructure and operation of the Vietnam Securities Depository Centre;supplements the regulations on clearing and settlement in order to expandprofessional activities; and strengthens risk management regulation as well aspayment support mechanism.
Fourth, the ownership ratio of foreigninvestors in public companies on the securities market will be clearly defined.
Fifth, the law will ease the way forforeign investors to participate in the Vietnamese securities market.
Sixth, regulations on corporategovernance of public companies, securities companies and fund managementcompanies will be standardized to improve the quality of enterprises.
Seventh, the law will review theconditions for granting the establishment and operation licences to securitiescompanies and fund management companies in line with the Lawon Enterprise; and define the role and responsibilities of securitiescompanies in ensuring their clients to comply with the law.
Eighth, it enforces the obligation ofinformation disclosure to enhance the clarity and transparency of the stockmarket.
Ninth, the revised law will definecertain powers of the State Securities Commission to enable it to inspect,supervise, monitor and enforce regulations on the market.
According to Vu Thi Chan Phuong, SSC’svice chairwoman, the update on the securities law at the current time isnecessary given that a number of laws (on investment, inspection, civil codeand handling of administrative violations) were revised and promulgated which haverelated to the implementation of the Law on Securities such as the ownership offoreign investors, corporate governance, inspection authority andadministrative sanction.
The amendment of the securities lawwill demonstrate the policies and guidelines of the Government in restructuringfinancial markets, State-owned enterprises, creating favorable investmentenvironment for all investors and enhance transparency for businesses, Phuongsaid.
The SSC is collecting consultation fromministries and market players for the revised law.-VNA
VNA
