Ministry of Finance: Proposal to narrow regulations on bond issuance purposes

The Ministry of Finance has just reported on the stock market performance in the first months of 2022 and proposed solutions to stabilize the stock market and corporate bonds.

(Illustrated photo – Photo: VNA)

The Ministry of Finance said that it is directing the State Securities Commission to continue strengthening the inspection and supervision of issuers, issue advisory organizations, issue agents, and service providers for securities companies. the offering of corporate bonds to promptly correct and prevent violations. In case of detecting violations, they will be strictly handled according to their competence and provisions of law.

In the context of the corporate bond market showing signs of hot development, in order to stabilize the market, the Minister of Finance continuously directed the competent agencies of the Finance sector to strengthen inspection and supervision in order to stabilize the market. correct and strictly handle violations in the issuance and provision of services on corporate bonds.

Specifically, the authorities have organized inspection teams at 9 securities companies and 2 issuers.

On the basis of inspection results, the State Securities Commission has issued 3 sanctioning decisions for 2 real estate enterprises. release Stock and 1 securities company providing services on corporate bonds.

According to the Ministry of Finance, after 1 year of implementing new regulations on corporate bond issuance in the Law on Securities, the Law on Enterprises and guiding decrees, the Ministry of Finance has evaluated, reviewed and developed a draft. Decree amending and supplementing Decree No. 153/2020/ND – CP in the direction of enhancing publicity and transparency, minimizing risks arising in order to develop a sustainable corporate bond market.

Some proposed policies include: Narrowing regulations on the purpose of bond issuance to limit the transfer of capital around, causing lack of transparency and difficulties for investors when assessing the risks of bonds and the issuer; Specific guidance on issuance conditions and offering documents; in which there are requirements on the ratio of financial safety when issuing bonds, organizations representing bondholders, banks managing accounts of proceeds from bond issuance.

Next, specify the types of bonds that individual investors can buy and trade in order to orient individual investors to buy corporate bonds with more safety, publicity and transparency.

At the same time, supplementing regulations to speed up the establishment of a separate corporate bond trading market at the Stock Exchange for professional securities investors and supplementing regulations on the responsibilities of financial institutions. service organizations to streamline service delivery organizations and improve the quality of service delivery. Currently, the decree is being finalized to send to the Ministry of Justice for appraisal and submission to the Government for promulgation.

At the same time, the Ministry of Finance directed the State Securities Commission to develop a Circular on individual bond trading and review and amend a number of provisions in the Law on Securities. Specifically, the concept of a professional securities investor, the responsibilities of organizations providing services such as issuance consultancy, agency, bidding, guarantee, registration, bond depository and owner’s representative. bond ownership.

Thereby, continuing to improve the legal framework, enhance publicity and transparency, and reduce risks to the corporate bond market.

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