Monday, April 15, 2024 4:11:33 PM - Markets open
VN-INDEX 1,216.61 -59.99/-4.70%
HNX-INDEX 229.71 -11.62/-4.81%
UPCOM-INDEX 88.98 -2.23/-2.44%
Securities draft law remains confusing: report
Vietnam News - 4/3/2019 1:07:30 PM
 (0 ratings. You must sign in to rate.)
HÀ NỘI - The draft amended Law on Securities, expected to be approved by the upcoming National Assembly meeting in May, is still causing confusion among investors, market members and regulators.
Some items are unclear while others are unreasonable and no longer fit the Vietnamese market’s conditions, the Government said in a report submitted to the National Assembly’s Economic Committee yesterday.
Those issues may befuddle investors, market members and regulators, the Government said, adding that policymakers must adjust the law so it matches international standards and agreements to which Việt Nam is committed.
According to the report, the amendment of the law involves different agencies like the State Securities Commission (SSC) – who would be in charge of inspecting, examining and dealing with violations – and local stock exchanges – who would be authorised to close and open the markets under particular conditions.
Some drawbacks in current legal documents are related to luring foreign capital as the Law on Securities does not regulate the presence of foreign investors on the Vietnamese market regarding their ownership, investment procedures and requirements.
Deputy minister of finance Huỳnh Quang Hải told a meeting discussing the Law on Securities that the draft aims to make the securities market more open to foreign investors and opening the market must be carried out step by step, assuring local authorities and companies have advantages in negotiating with foreign institutional investors.
In addition, foreign investors trading on the Vietnamese market must strictly follow domestic regulations on their ownership, investment requirements and conditions, yet the draft law does not mention specific levels for foreign ownership.
The lack of specific solutions for those issues is a challenge for policymakers as the Government is now responsible for setting up the regulations for 39 items in the draft law, which is too many, according to Vũ Hồng Thanh, chairman of the NA’s Economic Committee.
The draft law aims to keep eight items in the existing Law on Securities, remove 30 items, adjust 98 items and add extra content for 29 items.
Fines are lifted by 1.5 times
The maximum fines of VNĐ3 billion (US$128,750) for institutional investors and VNĐ1.5 billion for individual investors are considered strong enough to deter investors from breaking the law, according to deputy minister Hải.
The current levels regulated by the Law on Securities are VNĐ2 billion for institutional investors and VNĐ1 billion for individual investors.
The draft law also empowers the SSC to ask organisations, companies and individuals to provide information for investigators and market regulators when the SSC and other agencies carry out inspections.
Financial institutions and commercial banks in Việt Nam must submit trading data of investors and traders suspected of violating the law, and the SSC is authorised to ask telecommunication firms to provide contacts, addresses and call histories of suspected investors and traders.
The meeting was organised by the National Assembly’s Economic Committee to assess the draft amended Law on Securities. VNS
Read original article here
Newer News
10/04 Banks and oil stocks endure a tough day, leaving with market volatility
05/04 Oil stocks see bright prospect amid rising prices
05/04 HoSE's stock market capitalisation in March rises by 3.1% compared to February
03/04 Stocks rebound as cash flow surges into large-cap shares
23/03 Shares sustain gains on strong investor confidence
20/03 Vietnamese securities companies race to boost capital amid high market demand
19/03 Large-caps pressured as increased profit-taking drives share decline
18/03 Market likely to be affected by Fed's meeting this week
18/03 Investors show strong interest in dividends at annual shareholders' meetings
15/03 VN-Index corrects, liquidity stays high
Older News
02/04 Shares extend gains at start of week
01/04 Caution may continue dampening market
31/03 Vietnam stocks slip on last-minute sales
28/03 VN stocks pick up as petro firms boosted by oil price increases
27/03 Vietnam stocks change little as caution high
25/03 Market trend hard to predict after difficult week
22/03 Stocks fall, dragged down by blue chips
21/03 VN-Index floats above 1,000 points for seventh session despite losses
18/03 VN stocks to keep rising this week
14/03 Financial stocks lift market for a second day
Newsletter Signup
Top Stories
PM Chính requires strengthened gold market management
Bank shareholders to receive high dividends, stock bonuses
Shares sustain gains on strong investor confidence
Banks given advantages to CASA ratio
Man owes bank nearly VNĐ9 billion in credit card's interest after 11 years
Market Update
Last updated at 3:05:00 PM
VN-INDEX 1,216.61 -59.99/-4.70%
Real-time chart
Top 5 Actives
Top 5 Gainers
Top 5 Losers
My Favorite Quotes
Your most recently viewed tickers will automatically show up here if you type a ticker in the Get Quotes box on the top of the page.
Company Research
Type in the symbol above for thorough background information, key statistics and financial information.
Stock Sectors
We continuously improve our services, here are the latest updates...
Allow you to monitor a customised group of securities. You can set up multiple Portfolios to help you better manage your investments.
Trigger Alerts
Get up-to-date alerts delivered directly to your email address.
Stock Screener
Allow you to filter the market and find exactly what sort of company you are looking for.
Live Terminal
Get instant access to FREE REAL-TIME streaming quotes for hundreds of stocks from HOSE, HNX and UPCOM exchanges.