According to the State Securities Commission (SSC), after more than three years of implementation, the 2019 Securities Law and its implementing regulations have created a relatively complete, synchronized, and unified legal framework to comprehensively regulate securities activities and the securities market; promptly institutionalized the Party and State's guidelines, policies, and strategies on securities market development; contributed to ensuring that the securities market operates fairly, openly, transparently, and safely, protecting the legitimate rights and interests of investors, and playing a crucial role as a capital mobilization channel for the Government and businesses, as well as an attractive investment channel for the public.
Besides the positive results, the rapid development of the market has given rise to some shortcomings and obstacles in the practical implementation of the Law that need to be considered and promptly amended, supplemented, and perfected in order to promptly overcome limitations and risks in market operations, contributing to further enhancing the effectiveness and efficiency of state management of securities and the securities market, while creating favorable conditions for businesses to participate in the market and raise capital to serve production and business development.
According to the State Securities Commission (SSC), the main objective of these amendments is to institutionalize the Party and State's policies and guidelines on securities market development, and to promptly address shortcomings in the implementation of the current Securities Law. The amendments focus on several important areas, including: enhancing transparency and efficiency in securities issuance and offering activities, as well as perfecting the legal framework to promote securities clearing and settlement under the central counterparty (CCP) mechanism.
The objective of the CCP mechanism is to give the Vietnamese stock market an opportunity to be upgraded, while promoting more sustainable development for the financial market. This is one of the necessary solutions to ensure transparency and safety in securities trading, increasing the attractiveness and confidence of investors.
Furthermore, another important amendment is to strengthen supervision and strictly handle fraudulent activities in the issuance and offering of securities. The new regulations will clearly define the responsibilities of organizations and individuals participating in the market, aiming to effectively prevent and address violations of laws related to the securities market. This will not only help protect the legitimate rights and interests of investors but also contribute to improving the effectiveness and efficiency of state management of the market.
Recently, the Ministry of Finance issued Circular 68, amending four circulars related to the Non-Pre-funding solution (NPS) for foreign institutional investors and the roadmap for disclosing information in English. This move aims to remove the pre-funding bottleneck and is a step closer to upgrading the stock market.
Specifically, Circular 68 of 2024 allows foreign institutional investors to buy shares without requiring sufficient funds at the time of placing an order. Accordingly, foreign institutional investors can buy securities on the same day (T+0) and settle on subsequent days (T+1/T+2). The Circular takes effect from November 2nd.
Currently, the Vietnam Securities Depository and Clearing Corporation (VSDC), securities companies, custodian banks, and investors are working to complete the paperwork.
Source: https://vov.vn/thi-truong/chung-khoan/sua-luat-chung-khoan-xu-ly-nghiem-cac-hanh-vi-gian-lan-lua-dao-chung-khoan-post1127026.vov
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