Strictly handle violations of private corporate bond issuance

The State Securities Commission (SSC) has just issued Official Letter No. 2488 requiring securities companies to continue implementing specific contents related to the issuance of corporate bonds.

Accordingly, with bond offering documents, securities companies must closely review to ensure that the issuer fully meets the conditions for the bond offering and bond offering documents as prescribed in Decree No. No. 153/2020 of the Government and securities law. Securities companies will be responsible before the law for their review.

With ongoing consulting contracts, securities companies are required to review the entire profile of the enterprise, the quality of the components of the provided documents, especially the financial statements, supporting documents. the purpose of using capital from the bond issuance, the dossier of collateral assets to request the enterprise to re-disclose information to the HNX before the issuance.

Also according to the content of this official dispatch, the securities company’s activities of providing consultancy services on bond offering documents are under the management and supervision of the State Securities Commission, and the consulting organization must fulfill its reporting obligations. periodically for the State Securities Commission. Violations of the law when providing services will be punished according to the provisions of the law.

With regard to the organization of bidding, underwriting, bond issuance agents comply with the provisions of Decree No. 153/2020 and the service provision contract signed with the issuing enterprise; fully and accurately disclose information of the issuer, issue bonds to investors according to the issuance plan, the approved bond offering announcement and only offer bonds to investors. investors are eligible to buy bonds as prescribed in Clause 1, Article 8 of Decree No. 153/2020 of the Government.

Acts of providing inaccurate, incomplete information and soliciting for the wrong investors will be sanctioned for violations in accordance with the law.

With the registration and depository of bonds, the State Securities Commission requested to review all corporate bonds being registered and deposited in terms of the volume of registered and deposited bonds, the situation of payment of principal and interest, and the quantity. and types of investors holding bonds as of April 15, report to the Hanoi Stock Exchange before May 5.

Securities companies are responsible for complying with regulations on identifying professional securities investors when transferring privately issued corporate bonds, reviewing and storing documents on certification of home status. Professional securities investment ensures completeness, honesty and accuracy in accordance with the provisions of Article 11 of the Law on Securities, Articles 4 and 5 of Decree No. 155/2020. Violations of the law when providing services will be punished according to the provisions of the law.

The SSC noted that securities companies, during the implementation process, if they detect unusual phenomena or signs, must actively report and report to the SSC and the Stock Exchanges for consideration and handling in accordance with the law. provisions of law.

The above contents are to implement Directive No. 01 dated April 25, 2022 of the Ministry of Finance on strengthening inspection, supervision and rectification of issuance, investment and service provision activities on the bond market. Privately issued corporate bonds, related to the provision of consulting services on bond offering documents, bidding, guarantee, bond issuance agency, registration and custody of individual corporate bonds.

Regarding individual corporate bond transactions, on September 10, 2021, the State Securities Commission issued Official Letter No. 5225 reminding securities companies to comply with Decree 153/2020 dated December 31, 2020. 2020 of the Government regulating the offering and trading of individual corporate bonds in the domestic market and the offering of corporate bonds to the international market (Decree No. 153/2020) and Circular No. 122/2020 dated December 31, 2020 of the Ministry of Finance guiding the information disclosure and reporting regime in accordance with the provisions of Decree No. 153/2020.

Gia Hung

Individual investors withdrew more than VND 4,000 billion from securities in AprilDespite the net buying in the latest week, individual investors still net sold more than 4,000 billion dong of securities on HoSE in April.