Draft Amendment Law to the Law on Securities
The State Securities Commission of Vietnam published a draft Amendment Law to the Law on Securities on March 25, 2010 in a hope to keep pace with the new trend on the securities market recently.
The Draft expands its reach to private share placement, rather than focusing on public share offering. New provisions on private share placement are mainly taken from the recently issued Governmental Decree No.01/2010/ND-CP dated January 4, 2010 on private share placement. It is however silent on the fate of the Decree No.01 after the Amendment Law is passed.
The Draft proposes a provision that obliges issuing organizations to undertake listing or trading their shares on the organized securities market within 06 months from the completion of the issuance. This regulation aims to narrow the activities of OTC market and expand the organized one.
The Draft has for the first time recorded "real estate investment fund", which operates under the form of public fund and is allowed to invest over 20% of its total assets in real estate where it is a closed investment fund.
The Draft also regulates the obligation of the Securities Depository Centre on disclosure of information and revokes provisions on penalty of 1 to 5 times or from 1% to 5% of the illegal income, but instead specifies penalty amounts in currency, etc.
The State Securities Commission is inviting public opinions and comments regarding the Draft and expects to submit to the National Assembly for approval this year.
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