The State Stock committee has made public the outcome of the conference on petitions by Vietnam Association of Financial Investors for the Draft Stock Law. Accordingly, many subsidiary licences were abolished.
At the three-side meeting among the State Stock committee, the National Assembly’s Economic and Budget committee and VAFI held in late February, participators reviewed the tenth draft Law on Stock submitted to the eighth Session of National Assembly specialised Deputies and made proposals presented to the ninth Session of National Assembly for approval.
Accordingly, the Law drafting authority agreed to abolish many kinds of subsidiary licences and at the same time pointed out that information about 36 licences put in the paper listed by VAFI were not accurate of which many contents coincided and some could not be found in the draft Law.
For instance, the conclusion of the State Stock committee said that licences for paying dividends by shares, licences for selling preferential shares to more than 100 workers and licences for selling shares to more than 100 existing shareholders to increase legal capital are absent in the draft Law.
The draft has had amendments such as the abolition of such regulations as “Fund management companies are only granted establishment licences in case they have business operation strategies in compliance with socio-economic goals and development strategy of the stock sector”. Other regulations such as the Stock committee assessment of the first three-year operation strategy of fund management companies and requirements for clearance of legal documents identifying juridical personality of members contributing capital were also omitted.
In the sense of thorough administration reform right from the outset of law construction, the National Assembly’s Economic and Budget committee has coordinated with relevant agencies to review the eighth draft Law on many times, comparing it with other countries’ laws, attempting to abolish unnecessary licences and administration procedures while ensuring concrete regulations on sensitive issues which need strict management of the State to guarantee the safe and stable development of the stock market, said Ms Duong Thu Huong, Vice Chairperson of the National Assembly’s Economic and Budget committee.
Mr. Tran Xuan Ha, Chairman of the State Stock committee said that they would continue to fulfil the draft Law on Stock, particularly regulations on licences, certificates or contents requiring approval of the State management authorities on the basis of ensuring strict control of the market’s activities while minimising troublesome regulations related to administration procedures.
Contents about conditions, documents, procedures and time for granting licences and certificates should be obvious, concrete as well as showing related responsibilities of the State authorised management bodies.
(Source: State Stock Committee)
Vietnamese
