Strictly handle securities fraud and scams

According to the State Securities Commission (SSC), after more than 3 years of implementation, the 2019 Securities Law and its detailed implementing documents have created a relatively complete, synchronous, and unified legal framework to comprehensively regulate securities activities and the securities market; promptly institutionalize the Party and State's guidelines, policies, and strategies on securities market development; contribute to ensuring that the securities market operates fairly, publicly, transparently, safely, and protects the legitimate rights and interests of investors, and plays the role of an important capital mobilization channel for the Government , businesses, and an attractive investment channel for the public.

In addition to the positive results, the rapid development of the market has given rise to a number of shortcomings and difficulties in the practical implementation of the Law that need to be reviewed, amended, supplemented and perfected promptly to promptly overcome limitations and risks in market operations, contributing to further improving the effectiveness and efficiency of state management of securities and the securities market, while creating favorable conditions for enterprises to participate in the market and mobilize capital to serve production and business development.

Chairwoman of the State Securities Commission Vu Thi Chan Phuong speaks at the workshop

According to the State Securities Commission, the main objective of this amendment and supplement is to institutionalize the policies and orientations of the Party and the State on the development of the securities market, promptly overcome shortcomings in the implementation of the current Securities Law. The amendment and supplement focus on a number of important contents such as: improving transparency and efficiency in securities issuance and offering activities, as well as perfecting the legal basis to promote clearing and settlement of securities transactions under the central clearing counterparty (CCP) mechanism.

The objective of the CCP mechanism is to help the Vietnamese stock market have the opportunity to upgrade, while promoting more sustainable development for the financial market. This is one of the necessary solutions to ensure transparency and safety in securities trading activities, increasing the attractiveness and confidence of investors.

In addition, one of the other important amendments is to strengthen supervision and strictly handle fraudulent and deceptive acts in securities issuance and offering activities. The new regulations will clearly supplement the responsibilities of organizations and individuals participating in the market, in order to prevent and effectively handle violations of laws related to the securities market. This not only helps protect the legitimate rights and interests of investors but also contributes to improving the effectiveness and efficiency of state management of the market.

Recently, the Ministry of Finance issued Circular 68 amending 4 circulars related to foreign institutional investors being able to purchase shares without requiring sufficient funds (Non Pre-funding solution - NPS) and the roadmap for information disclosure in English. This is a move to untie the pre-funding knot, a step closer to upgrading the stock market.

Specifically, Circular 68 of 2024 allows foreign institutional investors to purchase shares without requiring sufficient funds when placing orders. Accordingly, foreign institutional investors purchase securities on the same day (T+0) and pay on the following days (T+1/T+2). The Circular takes effect from November 2.

Currently, Vietnam Securities Depository Corporation (VSDC), securities companies, custodian banks and investors are working to complete the paperwork process.

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