SECURITIES LAW HAS BEEN ADOPTED – BUSINESS THAT WANTS TO MOBILIZE CAPITAL FROM THE STOCK MARKET MUST HAVE A RELATIVELY LARGE SCALE

27/11/2019, 17:11 PM

The Securities Law (amended) was adopted on 26 Nov and will take effect on 1 Jan, 2021, (the previous proposal was 1 Sep, 2020).

One of the major changes in the Securities Law (amended) is to raise the condition to become a public company; First offer to the public and to sell more to the public; additional objects of information disclosure; increase the penalty rate in case of administrative violations, etc.

According to the new law, the condition for the company to be sold publicly is to have charter capital of 30 billion VND, instead of 10 billion VND as before. Thus, a business that wants to mobilize capital from the stock market must have a relatively large scale - three times as high as before. That means the newly established enterprises will have difficulties, and need more time to accumulate capital or shareholders have to contribute more capital right from the beginning.

That makes the quality of goods sold to the market will be more secure.

(Vietnamnet)

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