Will soon submit to the Government to amend regulations on private corporate bond issuance
Sharing at the Conference “Developing a safe, transparent and effective capital market in order to stabilize the macro-economy and ensure great balances of the economy”, Mr. Ho Duc Phuc – Minister of Finance said. Knowing that the Ministry of Finance will study and propose to the Government to amend the regulations on private placement of corporate bonds in the Government’s Decree No. 153/2020/ND-CP (Decree 153) regulating the offering, trading corporate bonds individually in the domestic market and offering corporate bonds to the international market in the direction of reasonable tightening.
Specifically, to ensure the safety and transparency of the bond market, weak businesses are not allowed to issue. The goal of raising capital from bonds needs to be narrowed down, only serving the investment and implementation of projects. In addition, after issuing, enterprises must immediately notify the Stock Exchange and State Securities Commission and regularly publish information on the use of money from bond mobilization.
Mr. Ho Duc Phuc said that in the near future, the Ministry of Finance will also study and propose to the Government to submit to the National Assembly for an overall review of the provisions of the Law on Securities, including the scope of public issuance and private placement. , the concept of professional securities investors in the Law on Securities and regulations on handling violations in the stock market and some related contents.
Also at the conference, according to a representative of the Ministry of Finance, the capital market has now formed and fully operated components including the stock market, bond market and derivatives market. In which, the size of the bond market reached 39.7% of GDP (Government bonds were 22.7% of GDP and corporate bonds were 14.2% of GDP). Therefore, the goal is to develop the corporate bond market in a sustainable way to become an important capital mobilization channel for businesses, focusing on developing a transparent secondary market, building market standards, and separating transparency between bonds issued to the public and privately issued.
In addition to the positive results achieved in the past time, the rapid growth of the corporate bond market also creates many risks, especially for individual investors who do not fully understand the law in investing. private, individual corporate bond transactions. Some cases have committed fraud to become professional investors allowed to trade corporate bonds. In addition, the issuer has limited financial position, and some enterprises use capital not in accordance with the announced information.
Despite the synchronous implementation of solutions to restructure securities trading organizations, the performance quality of service providers in the market is still not uniform, so there are still negative behaviors. pole. The capacity of some auditing organizations and appraisal organizations is still limited and has not met professional standards. Some issuer organizations and corporate bond distributors have not yet complied with the law.
Therefore, in order to meet the capital demand for the economy, the management of the stock market and bond market, the Ministry of Finance in the coming time will continue to maintain in the direction of ensuring the market operates safely and transparently. transparency, protecting the legitimate rights and interests of investors.
“The Ministry of Finance continues to closely coordinate with the State Bank, the Ministry of Planning and Investment and relevant ministries and branches in the operation, management and supervision of the stock market, the bond market with the domestic market. The monetary and banking credit markets ensure publicity and transparency in the capital market, stabilize the financial market, thereby contributing to the stability of the macro-economy,” said Ho Duc Phuc.
Accordingly, a number of solutions proposed by the Ministry of Finance include: first, organizing the market operation in association with completing the legal framework; the second is to actively implement the restructuring of the stock market, improving the competitiveness and quality of market intermediary institutions; the third is to improve the quality of investment demand towards sustainable investment demand; fourth is to improve the effectiveness of supervision; and finally, to strengthen coordination between ministries, branches and international cooperation activities.
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