The 2019 Securities Law (effective from January 1, 2021) regulates the offering, listing, and trading of securities, the activities of organizations and individuals on the securities market, and state management in this sector. The Law classifies types of securities such as shares, bonds, fund certificates, and derivatives.
The Law raises the standard for public companies to a minimum charter capital of VND 30 billion, with at least 10% of voting shares held by at least 100 investors who are not major shareholders. Public offerings of securities must be approved by the State Securities Commission (SSC) and accompanied by a complete and truthful prospectus.
Securities trading is conducted on the Stock Exchange through order matching and negotiated transactions, complying with regulations on price fluctuation limits and trading halts when necessary. The Law also sets conditions for the operation of securities companies, fund management companies, and types of investment funds.
Relevant entities must disclose periodic and ad-hoc information fully, promptly, and accurately. The SSC, under the Ministry of Finance, manages and supervises the market, conducts inspections, and handles violations such as price manipulation and insider trading, with administrative penalties or criminal prosecution.
The new Law strengthens investor protection, tightens conditions for offerings and listings, enhances corporate governance, and increases the supervisory role of the regulatory authority.
| Issuing bodies: | National Assembly of the Socialist Republic of Vietnam | Gazette number: | 999 to 1002-12/2019 |
| Official number: | 54/2019/QH14 | Gazette dated: | 28/12/2019 |
| Types of documents: | Law | Signer: | Nguyen Thi Kim Ngan |
| Issuing date: | 26/11/2019 | Expiry date: | |
| Effective date: | 01/01/2021 | Effect status: | Partly expired |
| Fields: | Security | Updated date: | 26/11/2019 |
