New-generation Securities Law to be built
A totally new Securities Law will be built in 2018 and the legal framework for the development of the derivative securities market for the 2017-20 period will be further completed, heard a workshop on statutory improvement of the securities market towards modernity and integration in Hanoi on December 16.
At the workshop, experts emphasized the necessity to build new mechanisms, policies and legal framework in line with international practice in order to restructure the Vietnamese securities market and improve the investment environment to attract more foreign investors.
Deputy director of the Ministry of Finance’s Institute for Financial Strategies and Policies Truong Ba Tuan said the securities sector has witnessed long strides over the last 20 years of development with constant growth of the stock exchanges, diversified trading commodities, a safe and modern trading and payment system and ever-increasing number of foreign and domestic investors.
However, Tuan said the stable operation of the securities market has been affected by great impacts of fluctuating foreign exchange rates and oil prices. The state business equitization and divestment have not yet created substantial changes in corporate governance, he said, adding that has made it hard to attract indirect foreign investment capital. In addition, the bond market, especially the corporate bond market and credit rating agencies, have also seen little development, he noted.
For her part, Deputy Director of the State Securities Commission of Vietnam (SSC) Vu Thi Chan Phuong pointed out shortcomings in mechanisms, policies and legal framework, including the 2006 Securities Law and the 2010 Law Amending and Supplementing a Number of Articles of the Securities Law.
She said focus should be paid to building a new-generation Securities Law so as to substantially change, sustainably develop and modernize the securities market, and issuing better legal documents guiding the Securities Law and introducing new regulations on trading mechanisms, information disclosure, corporate governance, listing and trading registration.
Nguyen Quang Viet from the SSC’s Legal Department proposed to add powers of the SSC to organize the performance of its managing functions, supervise, inspect and coerce the implementation of its regulations, diversify securities products to be offered and raise the conditions for public offering and attract foreign investment through the state ownership in public companies.
He also suggested finalizing provisions on securities investment funds and companies and supervisory banks, revision of provision on disclosure of information on the securities market and addition of special inspection and violation handling measures.
The statutory improvement of the country’s securities market should focus on the institution of building and developing the securities market, securities products, organization of trading and supervision, experts said.-(VLLF)