Please let us about a number of main Articles of Law on Securities?
On 29 June 2006, the National Assembly passed the Law on Securities. This Law includes 11 chapters and 136 articles with following main contents:
1. Scope of regulation: The Law stipulates the offering of securities to the public, securities listing, transaction, trading, investment, services on securities and securities market.
2. Subject of application: (i) Vietnamese organizations, individuals and foreign organizations, individuals participating in investment of securities and operating on the Vietnamese securities market (ii) other organizations and individuals relating to the security activities and securities market.
3. Regarding the public company: this is a new content of the Law on Securities in comparison with current Decree No.144/2003/ND-CP. Accordingly, a public company shall be a joint stock company subject to one of three following forms: (i) the company which offered its shares to the public; (ii) the company which its shares have been listed in Securities Trading Center/the Securities Exchange; and (iii) the company that its shares are owned by at least 100 investors not including professional security investor and its chartered capital is of VND10 billion or more. The public company shall be required to submit its Dossier to SSC for making public its information.
4. Regarding operation forms of securities market, it is the same as Decree No.144/2003, Law on Securities regulates two operation forms of the securities market including: the Securities Trading Center, the Securities Exchange. However, Law regulates more sufficiently the mechanism, operating organization as well as supplementing rights and obligations of such organizations such as issuing regulations on securities listing, securities transaction, information disclosure and transaction member after being approved by State Securities Commission; temporary cease and suspension or cancellation of securities transactions according to the securities transaction regulations of the Securities Exchange and the Securities Trading Center if necessary for purpose of protecting investors, etc.
The Law on Security shall take effect as from 01 January 2007.
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