Strictly handle violations of corporate bonds

State Securities said the corporate bond market has grown strongly, contributing to the development of the capital market and the stock market.

Economist Dr. Can Van Luc analyzes the global economic chart and the developments of the Vietnamese stock market during the Covid pandemic. Photo: NH

However, the corporate bond market has also seen some phenomena of offering, distributing, and transferring ownership that are not in accordance with the provisions of law. In order to develop the corporate bond market in a safe and sustainable direction, while preventing potential risks of this market, the State Securities Commission requires securities companies to ensure strict compliance with the provisions of Decree 153/2020/ND-CP dated December 31, 2020 of the Government regulating the offering and trading of individual corporate bonds in the domestic market and offering corporate bonds to the international market in the implementation of bond offering dossier consulting services; services to determine the status of professional securities investors; bidding, guarantee, and bond issuance agency services; bond registration, custody, and transfer services.

Securities companies must strictly comply with the reporting regime in Circular 122/2020/TT-BTC of the Ministry of Finance and the reporting regimes prescribed in Decree 153/2020/ND-CP. The State Securities Commission said it will conduct inspections of the provision of services by securities companies related to corporate bonds and strictly handle violations in accordance with the law.

Previously, in early September 2021, Minister of Finance Ho Duc Phoc sent Document No. 10059/BTC-VP to the State Securities Commission; Department of Banking and Finance and Vietnam Stock Exchange requesting to strengthen inspection and supervision of the corporate bond market.

In particular, the Minister of Finance assigned the State Securities Commission to preside over and coordinate with the Department of Banking and Finance and relevant agencies to step up inspection, examination and supervision of the issuance and provision of services on individual corporate bonds, especially the issuance of small, newly established enterprises operating in high-risk fields with unclear and substantive business results; focus on reviewing and inspecting to detect enterprises showing signs of violating and circumventing legal regulations in the issuance of corporate bonds. If fraudulent acts or signs of appropriation of investors' assets are detected, promptly transfer them to the police for handling in accordance with the law.