VCN- In order to have a complete draft of the Law on Securities, the drafting agency has listened to and acknowledged many opinions and conductedspecific evaluation and analysis. Mrs. Vu Thi Chan Phuong, Vice Chairman of the State Securities Commission, spoke about the process of drafting the revised Securities Law.
|Amendment of the Law on Securities: Putting inspection and supervision into effect|
|Revised Law on securities: should facilitate small enterprises|
|There should be regulations to closely monitor the securities business|
|Mrs. Vu Thi Chan Phuong, Vice Chairman of the State Securities Commission|
In order to have a complete current draft of the Law on Securities,how has the drafting agency, namely the State Securities Commission, implementedthe process of receiving comments?
Since the publication of the draft Law on Securities (amended), the State Securities Commission has organized seminars in three regions to receivecomments from domestic and foreign scientists and had great help from foreign experts’ experience in the world stock market. In addition, the opinions of many individuals, organizations, securities companies and securities trading organizations have been gathered, evaluated and recorded by agencies.
Through many consultations, the drafting agency has actively acquired and corrected seriously. Up to now, the draft Law has closely followed the goals and views to direct and concretize policy groups to propose the construction of bills approved by the Government. The State Securities Commission has also exchanged the draft law with many countries and confirmed that the draft Law has met the standards of European and American countries and is suitable for the Vietnamese economy. Up to now, the Ministry of Finance's appraisal rounds, the Government's comments and the National Assembly's Economic Committee, the draft Law on Securities (amended) has been relatively complete.
Can you tell us more about some of the key issues that have been revised in this draft Law?
The draft law includes 10 chapters, 136 articles. Compared to the current Law, the draft Law amends 97 articles, supplements 31, repeals 31 articles and keeps 8 articles. In addition to the general provisions such as scope of adjustment, word interpretation, the draft Law has many new provisions in the issue of securities offering; public company; organizing trading market; participation of foreign investors; securities registration, clearing and payment; securities business organization; and inspection and handling of violations.
In the drafting process of the bill, the drafting committee has followed the objectives and requirements set out when revising the Law and based on eight major policy groups approved by the Government. For example, on the offer of securities, in order to improve the quality of goods on the market, in the draft Law, conditions for offering securities have been revised, supplemented and standardized to conform to international practices,at the same time, supplementing the regulations to attach the public offering of securities to the listing and transaction registration at the stock exchange.
Regarding public companies, after listening to comments, the draft law raised the standard of contributed capital of public companies from 10 billion dong to 30 billion dong, while amending and supplementing conditions on shareholder structure and company manager.
In addition, on inspection and handling of violations and draft additional Laws, some competence of the State Securities Commission in inspection, examination and handling of violations. Noting comments from market members in order to increase deterrence, the latest draft Law raised the maximum fine level in administrative sanctions against the current legal regulations, the maximum level VND 3 billion for organizations and VND 1.5 billion for individuals.
When the draft Law on Securities (revised) is published, many opinions are expected to attract large capital inflows from foreign investors into the market. How is this reflected in the draft Law?
All laws in the new draft express the desire to attract foreign investment. Regulations from the concept to new products or improving the quality of goods on the market are to attract investors, including foreign investors because the goods will attract more investors. In addition, all new regulations create openness in opening accounts and transaction codes for investors. Regulations on information disclosure or website regulations in English help foreign investors better understand Vietnamese enterprises and the stock market.
A number of regulations related to the order and procedures were also assigned to the Government and the Ministry of Finance to guide the flexibility and timely response to new developments of the stock market and help solve problems for investors more quickly and effectively.
By Bao Minh/Bui Diep