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Ministry of Finance warns buyers of corporate bonds after Tan Hoang Minh case

09/04/2022 15:57 GMT+7

Investors should also note that the fact that credit institutions and securities companies distribute corporate bonds does not mean that these organizations guarantee the safety of bond purchases.

Investors will not be bond owners and have no interest in bonds according to the commitments of the issuing business.

On April 8, the Ministry of Finance communicated about the bond and corporate bond markets.

According to the Ministry of Finance, the Securities Law 2019, the Enterprise Law 2020 will be applied from January 1, 2021 and the guiding decrees have regulated the separate management between private placement and public issuance of corporate bonds. .

Privately-issued corporate bonds may only be sold to professional securities investors in the form of self-borrowing, self-paying, self-responsibility.

Issuing enterprises must disclose information fully and honestly to investors, disclose information to the Stock Exchange, and at the same time have the responsibility to use capital for the right purposes, return bond principal and interest. on time; Legal documents also clearly stipulate the responsibilities of issuing consulting organizations and service providers in providing transparent information and strictly complying with the provisions of the law.

After the Tan Hoang Minh case, the Ministry of Finance warned buyers of corporate bonds Photo 1

After the Tan Hoang Minh case, the Ministry of Finance issued a warning to buyers of corporate bonds. illustration

“Investors should also note that the fact that credit institutions and securities companies distribute corporate bonds does not mean that these organizations guarantee the safety of bond purchases. In case of buying bonds through investment contracts, there is no legal basis in accordance with the law on bond issuance. Investors will not be bondholders and will not have rights to bonds according to the commitments of the issuer,” warned the Ministry of Finance.

Investors should also pay special attention that current regulations only allow professional securities investors to buy and trade corporate bonds individually. Accordingly, any fraudulent behavior to become a professional securities investor not only exposes investors to many risks and losses when buying bonds (possibly losing the entire investment money) but also acts of fraud. violate the law. State management agencies will carry out inspection to strictly handle acts that circumvent these provisions of the law.

For service providers, it is necessary to absolutely comply with the law in providing complete, transparent and accurate information to investors, ensuring advice for issuers to comply with the provisions of the law. the law; identify the right professional investors to buy bonds. Service-providing organizations (securities companies, commercial banks) soliciting and distributing corporate bonds to investors who are not professional securities investors or using other forms of circumvention of the law will also be prosecuted. severe punishment.

Regularly inspect and handle violations

Since 2019, the Ministry of Finance has deployed over 30 inspection teams at issuers, securities companies, and commercial banks. The Ministry of Finance also directed the State Securities Commission (SSC) to coordinate and provide documents for the authorities to consider violations.

Most recently, on April 3, based on dossiers, documents and requests of competent authorities on the cancellation of 9 bond issuances of Viet Star Company, Winter Palace Company, Company Soleil company under Tan Hoang Minh Group due to the act of disclosing false information, concealing information in private bond issuance, the State Securities Commission issued Decision No. 181/QD- The Securities and Exchange Commission canceled the nine offerings mentioned above with a total value of VND 10,030 billion.

The Ministry of Finance is also directing the State Securities Commission to inspect the issuance consulting organizations, issuance agents and service providers for the offerings of the three companies mentioned above. strictly according to their competence and provisions of law.

According to Quynh Nga/tienphong

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