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"This is an important milestone, a new stage of deep integration with the international capital market to attract investment into Viet Nam," the SSC said.— File Photo
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HA NOI (Biz Hub)— The State Securities Commission (SSC) has recently announced it signed on to Appendix A of the International Organisation of Securities Commission's Multilateral Memorandum of Understanding (IOSCO MMoU) on September 18 in Luxembourg.
"This is an important milestone, a new stage of deep integration with the international capital market to attract investment into Viet Nam," the SSC said.
The memorandum sets an international benchmark for cross-border co-operation critical to combating violations of securities and derivatives laws. In 2011, Viet Nam joined Appendix B, which offers measures to countries wanting to fully participate in the co-operation and information exchange.
Following two years of compliance with Appendix B, Viet Nam has been accepted as a signatory of Appendix A, where parties commit to support each other in the enforcement of cross-border supervision.
"It proves that the global market has recognised the development of the Vietnamese stock market," said a statement from the SSC.
The memorandum was developed in 2002, aiming to strengthen market surveillance and information exchange between member countries.
Countries not eligible for Appendix A were considered to have inconsistent and non-transparent legal frameworks, the SSC said, adding that the G20 nations and the European
It noted that Financial Stability Committee would rate a market based on its membership with the IOSCO MMoU.
"Countries not party to the memorandum face disadvantages in attracting foreign investors."
The SSC stated that being party to level A of the memorandum would earn domestic capital markets credibility and a better reputation with foreign investors.
The SSC added that it would be able to gain from the experience of other countries in cross-border trading to mitigate the risks of cross-border transactions to the financial market. — VNS