“We do not criminalize civil and economic relations”
Strictly handle violations, contribute to transparency, and strengthen investors’ confidence
This afternoon (April 22), speaking at the Conference on developing a safe, transparent, efficient and sustainable capital market in order to stabilize the macro-economy and ensure great balances of the economy, Major General Le Van Tuyen, Deputy Minister of Public Security, said that the corporate bond stock market is an effective capital mobilization channel for the economy. Over the past years, Vietnam’s stock market has made strong development steps, the transaction size is increasing.
However, along with that is the appearance of non-transparent acts in the market with many sophisticated and complex tricks.
Some common behaviors can be grouped as follows:
The first is the improper observance of the law on disclosure of information related to the market and transactions. According to a report by the State Securities Commission, in 2021 alone, 38 inspection teams inspected and issued 471 decisions on sanctioning administrative violations with an amount of over 20 billion VND.
Analysis of violations mainly focuses on acts such as disclosing untrue information, manipulating securities prices, and these acts have not yet reached the level of criminal prosecution.
Especially, the act of buying and selling shares without reporting, without disclosing information before the transactions of major shareholders, internal shareholders and related people of internal shareholders still tended to increase in complexity. complicated, causing lack of confidence for investors, directly affecting transactions, posing problems of lack of transparency in the stock market.
“These behaviors affect the psychology and confidence of investors in the stock market, affect Vietnam’s business and investment environment, and potentially create complicated problems,” said Major General Le Van Tuyen. know.
Second is the situation of providing and spreading false information on social statuses and enticing investment groups and trading advisory groups to cause damage to investors, which tends to increase. Taking advantage of the developed stock market and the increasing number of investors, securities associations set up many secret groups to advise and entice investors to participate in stock trading in order to make profit.
According to Major General Le Van Tuyen, in 2021 and early 2022 on the market, there has been a lot of false information that affects investors’ psychology in the stock market as well as some unhealthy information that affects investors. to the stock market.
Tuesday Due to the prolonged epidemic situation, idle cash flow has not been invested in production and business activities, many investors focus on securities, causing potential increase in bad debt and money safety. bad.
Major General Le Van Tuyen: Synchronously deploying professional measures to ensure financial security and economic security. VGP/Nhat Bac photo
For the corporate bond market, the issuance of corporate bonds to assist businesses in raising capital for production and business reduces dependence on the supply of capital for the economy from the main channel of banks. .
However, over the past time, in the corporate bond market, there have been some potential problems that pose risks related to precedent security such as the issuance of corporate bonds with a low rate of collateral.
According to the survey, this number accounted for about 50.9%. The situation of enterprises with small equity, low production and business results, losses, but still issued a large volume of corporate bonds for the purpose of raising capital. mobilize capital for their company; issue corporate bonds but use them for the wrong purpose; high bond interest rates make businesses face the risk of insolvency as well as default”, Deputy Minister of Industry and Trade. information security.
The corporate bond issuance process resulted in non-transparent violations of the obligation to publicly report information related to the provision of issuance advisory services as well as uncertified brokerage staff. practice only.
Crime in the financial and monetary field is considered a hidden crime that takes place for a long time, when discovered, causes great damage to the economy and also causes difficulties in the process of detection, investigation, and handling by agencies. authorities.
According to Major General Le Van Tuyen, over the past time with assigned functions, the Ministry of Public Security has coordinated with relevant ministries and sectors to focus on directing the local police to synchronously deploy professional measures to ensure security. financial security and economic security, especially in the field of stock market and corporate bond issuance.
Thereby, proactively detect loopholes and shortcomings in the state management of the securities and corporate bond markets to promptly advise the Prime Minister to direct the Ministry of Finance and the State Bank of Vietnam. Vietnam has amended and supplemented a number of documents accordingly to limit loopholes and inadequacies in this field.
At the same time, the Ministry of Public Security focuses on directing professional units and local police to investigate and clarify violations on the stock market and issue corporate bonds, strictly handle violations, contributing to transparency, strengthening investor confidence.
In the coming time, before the fluctuations of the financial and monetary market, the adjustment of policies of the economies of other countries as well as the internal problems of Vietnam’s capital market, in order to ensure the safety and transparency of the market, To supervise the stock market, the authorities need to continue to implement many strong solutions, in which the Ministry of Public Security proposes and recommends the following issues:
The first. securities in the direction of increasing the penalty frame, expanding violations in this field.
Second amending and supplementing Decree 153 dated December 31, 2020 on private placement and trading of corporate bonds in order to limit risks in the stock market. Amending and supplementing the Securities Law 2019 in the direction of having a mechanism to monitor the account opening activities of investors who open multiple accounts at different securities companies as well as the inspection of information of investors. when opening an account.
It is recommended that ministries and branches strengthen coordination with the Ministry of Public Security, the Ministry of Finance, and the State Bank of Vietnam to improve the effectiveness of the early warning system in the banking and financial sectors to proactively detect risks. potential, timely take preventive measures to overcome vulnerabilities.
Strengthening communication on the stock and bond markets, especially disseminating the policy of offering corporate bonds in the market, and recommending risks for investors and businesses in the process of developing corporate bonds. to ensure transparency in the stock market and corporate bond issuance.
The Ministry of Public Security continues to direct the local police to strengthen measures to proactively detect violations, omissions and inadequacies, to promptly propose amendments, supplements, and to fight and strictly handle violations. securities market and issue corporate bonds to create a transparent, stable and developing environment.
Prime Minister Pham Minh Chinh
After the speech of Deputy Minister of Public Security, Prime Minister Pham Minh Chinh emphasized: “It is important that we do not criminalize civil and economic relations. Mr. Tuyen’s speech expressed this spirit. “.
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