Ministry proposes new policies for stock market

Ministry proposes new policies for stock market

The ministry proposes a sandbox mechanism and bond payment guarantee organisations in the securities sector in order to complete the legal framework for the capital market.

The addition of regulations on the sandbox aims to meet the needs of businesses and investors for new products, services, and business models, while also aligning with the rapid development of information technology and financial technology in the securities sector. —VNA/VNS Photo

The Ministry of Finance proposes adding many new regulations in a draft amended Securities Law to complete the legal framework for the capital market and enhance confidence and control risks for investors.

Under the draft law amending and supplementing several articles of the Securities Law, which is currently being made public for comments, the ministry proposes a sandbox mechanism and bond payment guarantee organisations in the securities sector in order to complete the legal framework for the capital market.

According to the draft law, the sandbox is defined as a testing environment for the application of new technologies, the deployment of new products, services, and business models in the securities sector, with limited scope, subjects, space and time.

Organisations participating in the sandbox mechanism must meet the conditions and criteria for approval and be subject to supervision by competent State agencies. The Government will provide detailed regulations on this matter.

According to the ministry, the addition of regulations on the sandbox aims to meet the needs of businesses and investors for new products, services and business models while also aligning with the rapid development of information technology and financial technology in the securities sector.

Under the draft, this is a new field with high innovation potential and lacks a sufficient practical basis to determine a stable, long-term implementation roadmap. Therefore, the law only stipulates general principles, while specific details will be left to the Government to provide guidance to ensure flexibility in management and operation.

In addition, the ministry also proposes adding the concept of bond payment guarantee and creating a separate section regulating organisations that guarantee bond payments.

According to the draft, a business licence for guaranteeing bond payments will be granted to joint-stock companies or limited liability companies established under the Enterprise Law. The State Securities Commission is the competent authority to issue, reissue, amend and revoke licences for these organisations.

The Government will regulate in detail the scope of operation, conditions, documents, procedures for licensing, the organisation and operation, as well as the reorganisation, dissolution and bankruptcy of bond payment guarantee organisations.

The draft also stipulates that the name of the bond payment guarantee organisation must comply with the Enterprise Law and include elements of the type of enterprise, the phrase bond payment guarantee, and the proper name.

In addition, the draft law also proposes amending the concept of exchange-traded funds (ETFs) to allow funds to receive and exchange other types of assets as prescribed by the Government in exchange for fund certificates; and simultaneously amending the conditions for the legal representative of securities business organisations to be similar to the conditions applied to the general director.

According to the ministry, in the context of the increasing need to raise capital for the economy, especially for strategic infrastructure projects, the full development of intermediary organisations supporting the bond market is necessary to enhance investor confidence and control risks.

However, the current Securities Law does not have specific regulations on bond payment guarantees and bond payment guarantee organisations, causing a lack of legal basis for the development of guiding documents.

The addition of regulations on bond payment guarantees to the Securities Law is necessary, creating a legal basis for the Government to develop a specific legal framework for this activity, thereby promoting the safe and transparent development of the capital market in general and the corporate bond market in particular.

The law is expected to take effect from March 1, 2027. However, the regulations on the sandbox in the securities sector will take effect from March 1, 2028. 

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