The law needs to specifically regulate price manipulation in securities activities.

On the afternoon of October 7, under the chairmanship of comrade Nguyen Thanh Hien - Deputy Head of the Provincial National Assembly Delegation, the National Assembly Delegation of Nghe An province held a conference to collect opinions on the draft Law on Securities (amended). Photo by Thanh Le

Commenting on the content of the Draft Law on Securities (amended), delegates agreed on the necessity of promulgating the Law on Securities (amended) to meet the practical needs of perfecting and developing the current securities market, while aiming for synchronization in the legal policy system, approaching international standards and practices.

At the conference, delegates discussed many issues: Principles of law application, stock offering, conditions for public offering of securities, private bond offering of enterprises that are not public companies, private securities offering of innovative start-up enterprises...

According to Mr. Dang Thanh Cuong - Faculty of Economics, Vinh University, he commented: Clause 6, Article 11, Draft Law states: "It is not allowed to own securities on behalf of others". Having others own assets on behalf of others is not illegal. This also happens in real life civil transactions with notary offices for other types of assets.

“Only the act of lending securities assets should be strictly prohibited when it is used for fraudulent acts such as price manipulation, insider trading... Therefore, it is necessary to propose that Clause 6, Article 11 be amended to "Strictly prohibit the act of lending securities accounts".

In fact, many cases of stock price manipulation are carried out by borrowing accounts from friends and relatives to continuously trade, creating fake supply and demand. Therefore, lending must have legal responsibility," Mr. Cuong proposed.

Mr. Dang Thanh Cuong - Vinh University commented on the Draft Law on Securities (amended). Photo: Thanh Le

Regarding this content, Ms. Nguyen Thi Bich Thuy (Faculty of Economics, Vinh University) said: Price manipulation and insider trading are often based on the advantage of unpublished internal information. Issuers are the source of information and have the obligation to disclose information to the public. Therefore, the responsibility of issuers is very large in information management and processing of internal information.

“The law needs to have specific, strict regulations on price manipulation and internal information management. The law also needs to have regulations on information coordination between relevant agencies, departments and sectors such as between tax agencies - State Securities Commission - police agencies,” Ms. Thuy said.

In addition, delegates also commented on many related issues: The structure of the draft law; professional social organizations on securities; securities trading market; authority of the State Securities Commission; payment banks; position, tasks, and powers of the State Securities Commission...

On behalf of the Provincial National Assembly Delegation, the Deputy Head of the Provincial National Assembly Delegation acknowledged the delegates' comments; at the same time, the Provincial National Assembly Delegation will synthesize the comments to submit to the National Assembly Standing Committee.