The policy aims to maximise the reduction of administrative procedures, but without lowering requirements for regulation, supervision and investor protection.

On the afternoon of September 3, at its sixth session, the National Assembly Standing Committee gave its opinions on the draft Law amending and supplementing a number of articles of the Securities Law.

Presenting the draft at the session, Deputy Minister of Finance Ta Anh Tuan said the current Securities Law had established a basic legal framework for the market.

The amended Securities Law is expected to take effect on March 1, 2027. Photo: baodautu.vn

However, in response to requirements for administrative reform, the development of the private sector, digital transformation, innovation, integration and enhanced market capacity, a number of provisions need to be improved.

“The objective of the revision is to reduce procedures, business conditions and compliance costs; boost modernisation and digital transformation; complete the legal framework for new issues; ensure consistency across the legal system; strengthen regulatory effectiveness; support market development; and improve the market’s status,” Deputy Minister Tuan said.

The draft does not change the scope of regulation, regulated entities or the basic policies of the existing law. It amends and supplements 23 articles, adds one new article and retains 112 articles unchanged.

One of the draft’s new provisions is to codify a plan to cut and simplify administrative procedures related to production and business activities under the management of the Ministry of Finance.

Accordingly, the draft removes certain conditions and documentation requirements for the registration of securities depository operations by commercial banks and foreign bank branches; conditions applicable to commercial banks selected to act as payment banks; and documentation required for the issuance of establishment and operation licences for securities business organisations.

A number of provisions concerning initial public offerings of shares; registration dossiers for additional public offerings of shares and convertible bonds; publication of offering notices; registration of public companies; and registration of securities depository operations will also be simplified to make them suitable for processing in a conducive e-environment.

The reductions are intended to go hand in hand with post-inspection, supervision and risk management.

Another notable new provision is the addition of a controlled testing mechanism for new technologies, products, services and business models, within defined limits in terms of scope, eligible entities, operating environment and duration.

The draft also sets out principles on safety, participation conditions, the issuance and handling of certificates, and the supervision of responsibilities throughout the testing process.

The amended Securities Law is expected to take effect on March 1, 2027. The provisions on the controlled testing mechanism in the securities sector, however, are scheduled to take effect on March 1, 2028, allowing sufficient time to prepare for implementation.

Explaining several issues of concern raised at the session, Deputy Prime Minister Le Tien Chau said the revision of the Securities Law was intended to expedite policies on improving the legal and institutional framework, reform administrative procedures, boost digital transformation, develop the private sector and the capital market, while addressing problems that have arisen in implementation of the law.

“The government’s consistent approach is to make targeted and focused amendments while retaining provisions that remain appropriate. For complex and new major issues, we will continue to conduct comprehensive research and assessment and adopt an appropriate roadmap for a comprehensive revision,” the DPM said.

Chau also reaffirmed the policy of ‘maximising the reduction of administrative procedures, but without lowering requirements for regulation, supervision and investor protection.’

Vice Chairwoman of the National Assembly Nguyen Thi Hong said the National Assembly Standing Committee agreed on the need to amend and supplement the Securities Law in order to improve the legal framework, remove obstacles, cut administrative procedures and create a legal basis for new products, services and transaction methods.

At the same time, the NA Standing Committee asked the government to focus on completing several issues, including ensuring that the simplification of administrative procedures and investment and business conditions were accompanied by stronger post-inspection, supervision, and data utilisation and sharing, without lowering safety standards.