Prime Minister: Strictly handle violations of corporate bonds and land auctions

Today (April 7), on behalf of Prime Minister Pham Minh Chinh, Deputy Prime Minister Le Minh Khai signed the Prime Minister’s Official Dispatch on the correction of market activities. corporate bonds and auction of land use rights.

(Artwork – Photo: VGP)

The corporate bond market is an important medium and long-term capital mobilization channel for enterprises in accordance with the Government’s policy on balanced development between the capital market and the money and credit markets, the official said. However, in recent times, the issuance of corporate bonds has violated the law and the auction of land use rights still has many shortcomings and potential risks.

On April 5, 2022, the Investigative Police Agency of the Ministry of Public Security issued a decision to prosecute the case of fraud to appropriate property, which occurred at Tan Hoang Minh Group and related organizations and units, investigating and verifying a number of acts showing signs of law violation related to the issuance of bonds and mobilizing money of investors of member companies of Trading Service Limited Liability Company. Tan Hoang Minh Hotel.

To ensure a stable, healthy, transparent, safe, and sustainable corporate bond market operation, and land use right auctions in compliance with legal regulations, the Prime Minister requested the Ministry of Finance to: The Minister of Public Security directs the Public Security units and localities to urgently coordinate with relevant agencies in investigating and verifying to strictly handle violations in accordance with law, ensuring safe operations. issue, invest and use corporate bond capital for the right purposes, efficiently, in a healthy, transparent, stable and safe manner, contributing to the development of production and business, promoting economic growth and stability. macroeconomic setting.

At the same time, strengthen understanding of the situation, promptly prevent, detect, prevent and strictly handle acts of taking advantage of and violating the law in the auction of land use rights to make profit and cause disturbances. market.

The Prime Minister also directed the Minister of Finance and the Governor of the State Bank of Vietnam to direct functional agencies and units to closely monitor and supervise developments in the financial and monetary market, development activities, etc. operating, investing, distributing, trading and using corporate bond capital, ensuring compliance with applicable laws; proactively review the legal framework, develop response scenarios associated with drastic implementation of solutions to stabilize, develop the market and stabilize investor sentiment; to step up the work of information, propaganda and timely provision of official information on the macroeconomic situation and capital market; strengthen inspection, inspection, supervision, information disclosure and strictly handle violations.

The Minister of Finance and the Chairman of the State Securities Commission shall direct functional agencies and units to urgently inspect, examine and supervise the observance of the law on issuance, investment and distribution. , trading and using capital obtained from bond issuance, especially private bond issuance of real estate enterprises, credit institutions related to real estate enterprises, enterprises with large issuance volume, high interest rate, businesses with loss-making business results, issuers without collateral or unsecured assets… in accordance with the Prime Minister’s direction The Government at Official Dispatch No. 8857 dated December 3, 2021 of the Government Office, reported to the Prime Minister the results of the implementation before April 15.

The above agencies urgently review legal provisions related to the corporate bond market and the issuance and investment of corporate bonds to promptly amend and supplement according to their competence or propose competent authorities. amending and supplementing to increase the effectiveness and efficiency of the management and supervision of the corporate bond market, ensuring a healthy, transparent and safe market development; there are sanctions for early warning, risk management and strong and strict handling of violations of the law. Report to the Prime Minister the review results before April 30.

Along with that, the above agencies proactively announced information related to the above case and implemented solutions to stabilize the psychology of domestic and foreign investors, protect the legitimate interests of investors; strengthen the efficiency of inspection, examination and strictly handle violations in the corporate bond market in accordance with the law; give early warning and have a plan to promptly handle risks that may arise, ensuring market safety; actively coordinate closely and provide information, records and documents according to regulations to the authorities.

The Minister of Natural Resources and Environment directs to review and strengthen the inspection and inspection of activities of organizing auctions of land use rights and real estate in localities. For cases of abnormal behavior, causing market instability, promptly verify and clarify violations, strictly handle them according to the provisions of law to prevent profiteering; review the provisions of the law related to the auction of land use rights, promptly detect inadequacies and omissions, advise and propose the competent authorities to amend, adjust, supplement and perfect the system. the law on auction of land use rights in order to effectively prevent and combat abuses and violations for self-seeking purposes.

The Prime Minister requested the Governor of the State Bank of Vietnam to direct the inspection, examination and close supervision of credit institutions investing in corporate bonds, participating in activities of providing insurance services. underwriting, investing, distributing… corporate bonds, especially bonds issued by real estate enterprises, enterprises with large issuance volume, high interest rates, and profitable businesses. business losses, issuers do not have collateral…; review credit institutions’ lending activities for investors to participate in land use right auctions, promptly correct and strictly handle violations of regulations on credit lending.

The Prime Minister also requested the Chairman of the People’s Committees of the provinces and centrally-run cities to review, inspect and strengthen the organization of auction of land use rights in the area to ensure compliance with the law, publicity and transparency; promptly detect and strictly handle cases of violations of legal regulations, prevent acts of taking advantage of auctions to make profit and destabilize the market.

The Minister of Information and Communications directs the press agencies to promptly report truthfully and accurately; strictly handle cases of reporting and posting in contravention of regulations, negatively affecting investor psychology and stabilizing the financial market.

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