On the afternoon of 17/10, Finance Minister Ngo Van Tuan, authorized by the Prime Minister, presented to the National Assembly a draft Law amending and supplementing a number of articles of the Securities Law.

This draft, comprising three articles, aims to streamline administrative procedures, facilitate businesses, and adapt to scientific and technological advancements, allowing for the timely introduction of new securities models and products.

Finance Minister Ngo Van Tuan presented the draft law on the afternoon of 17/10. Photo: National Assembly Electronic Information Portal

The government’s key proposals include significant changes to initial public offering (IPO) requirements. It suggests eliminating the regulation on the minimum percentage of shares sold to investors during an IPO. Currently, a joint-stock company must sell at least 15% of its voting shares to a minimum of 100 non-major investors. For issuers with charter capital of 1,000 ty VND or more, this ratio decreases to 10%.

Furthermore, for IPO registration dossiers, the drafting agency proposes that businesses no longer need to commit to the aforementioned share sale ratio. Issuers may also be exempted from reporting the audited use of capital from their most recent offering for the two years preceding their application submission.

The draft also introduces a legal framework for a controlled testing mechanism in the securities sector. Specifically, the government seeks to supplement article 6, which stipulates general principles for this mechanism and empowers the government to provide detailed regulations.

Reviewing these proposals, Phan Van Mai, Chairman of the Economic and Financial Committee, indicated the committee's general agreement. However, he urged that any reductions be linked to robust oversight tools during operations to ensure market safety and protect investor assets.

Concerning the controlled testing mechanism, electronic transactions, and new technologies, the Committee advised the government to clarify specific content to avoid duplication with existing laws on science, technology, and innovation. The committee also stressed that the law must define principles regarding: authority, testing limits; voluntary participation, risk warnings, asset segregation, data protection; supervision and handling in case of testing failure. Exemptions from liability must be stringent, not absolving testing entities from compensation due to their errors or violations, the Committee stated in its review report.

For securities depository activities, the draft abolishes specific conditions regarding financial capacity, capital adequacy ratios, business performance, and facilities for banks registering to offer securities depository services. However, the Economic and Financial Committee expressed concern that current banking licensing conditions and legal enforcement mechanisms may not fully assess a bank's capacity to provide depository services, especially for banks violating capital adequacy ratios but not yet subject to early intervention or special control. Therefore, the reviewing agency recommends that the government consider maintaining essential conditions related to financial capacity and minimum capital adequacy ratios for banks registering to offer securities depository services.

The National Assembly is scheduled to debate this draft law in the assembly hall on 28/10 and vote for its approval on 13/11. If passed, the law will take effect from 1/3/2027.

Anh Tu