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LAO SECURITIES LAW: NEW GUIDELINES FOR EXECUTIVES AND INVESTORS

Vientiane, Laos - The Lao Securities Law has been amended to provide new guidelines for executives and investors involved in the country’s growing securities market. The law aims to promote transparency, fairness, and efficiency in the issuance of shares and corporate bonds.

NEW DEFINITIONS

The law introduces new definitions for key terms such as:

  • Insider information: This term is crucial in ensuring that all parties involved in securities activities have access to accurate and timely information.
  • Director: The role of a director is clearly defined, outlining their responsibilities and obligations in the securities market.
  • Global share certificate: A global share certificate is a document that represents ownership of shares. The law provides guidelines for its issuance and management.
  • Fund manager: A fund manager is responsible for managing investment funds. The law outlines their roles and responsibilities in the securities market.

PRINCIPLES OF OPERATION

The law sets out five primary principles for the operation of securities activities:

  • Protection of investor rights: Investors have a right to accurate and timely information about securities offerings.
  • Ensuring transparency and fairness: All parties involved in securities activities must operate with transparency and fairness.
  • Preventing systemic risks to the financial system: The law aims to prevent risks that could destabilize the financial system.

PROTECTION FOR SECURITIES PERSONNEL

The law provides legal protection for staff and officers involved in securities activities, including:

  • Reporters: Reporters are protected from any form of harassment or retaliation.
  • Whistleblowers: Whistleblowers are protected from any form of persecution or discrimination.
  • Witnesses: Witnesses are safeguarded against threats to life or health.
  • Experts: Experts are protected from damage to dignity or reputation.
  • Families: The families of securities personnel are also protected.

SCOPE OF APPLICATION

The law applies to all:

  • Persons
  • Juristic persons
  • Organizations operating securities-related activities in the Lao People’s Democratic Republic (PDR).

ISSUANCE OF SHARES AND CORPORATE BONDS

The law outlines the different types of share issuance, including:

  • Public offerings: Public offerings are regulated by the Lao Securities Commission.
  • Private placements: Private placements require approval from the Lao Securities Commission.
  • Rights offerings: Rights offerings allow existing shareholders to purchase additional shares.

EXECUTIVES’ RESPONSIBILITIES

Executives are responsible for:

  • Ensuring compliance with laws and regulations: Executives must ensure that their companies comply with all relevant laws and regulations.
  • Protecting investors’ interests: Executives have a duty to protect the interests of investors.

INVESTORS’ RIGHTS

The law ensures that investors have access to:

  • Accurate and timely information: Investors have a right to accurate and timely information about securities offerings.
  • Protection against insider trading and market manipulation: The law provides protections against insider trading and market manipulation.

The amended Lao Securities Law is expected to promote a more stable and efficient securities market in the country, while protecting the rights of executives and investors alike.