How Will Members Trading Private Corporate Bonds Be Handled When Violating Stock Exchange Regulations?
How Will Private Corporate Bond Trading Members Be Handled When Violating Stock Exchange Regulations?
Based on Article 13 of Regulations issued in Decision 55/QD-SGDVN 2023 as follows:
Handling Violations by Members
When a member violates the regulations in these Regulations, the Vietnam Stock Exchange applies the handling of violations against the member according to the following regulations:
1. Forms of handling violations are carried out in accordance with clauses 1, 2, 3, 5, and 6 of Article 25 of the Membership Regulations of the Vietnam Stock Exchange.
2. Principles and time limits for handling violations are carried out in accordance with clauses 2 and 3 of Article 26 of the Membership Regulations of the Vietnam Stock Exchange.
3. Authority to handle violations is in accordance with Article 27 of the Membership Regulations of the Vietnam Stock Exchange.
4. Procedures for handling violations are carried out in accordance with Article 28 of the Membership Regulations of the Vietnam Stock Exchange.
Violations by private corporate bond trading members will be subject to the following handling forms:
- Reminder.- Reprimand.- Temporary suspension of remote trading, temporary suspension of online trading connection.- Suspension of trading activities.- Mandatory cancellation of membership status.
How Will Private Corporate Bond Trading Members Be Handled When Violating Stock Exchange Regulations? (Image from the Internet)
What Does the Application for the Registration of Private Corporate Bond Trading Include?
Based on clause 3 Article 16 of Decree 153/2020/ND-CP (amended and supplemented by clause 13 Article 1 of Decree 65/2022/ND-CP), the application for the registration of private corporate bond trading includes:
- Application for bond trading registration;- Establishment and operational license, business registration certificate as prescribed by law;- Bond registration certificate from the Vietnam Securities Depository and Clearing Corporation;- Decision approving the bond issuance plan;- Approval document from the competent state management authority for bond issuance as prescribed by specialized law (if any);- Credit rating results from a credit rating organization for the bond-issuing enterprise or the type of bond issuance (if any).
What Principles Must Be Followed When Adjusting the Number of Registered Bonds for Trading During Early Bond Repurchase?
Based on clause 3 Article 10 of Circular 30/2023/TT-BTC:
Registration, Cancellation of Private Corporate Bond Trading
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3. The Hanoi Stock Exchange adjusts the number of bonds registered for trading in case the issuing enterprise repurchases early, swaps, converts part of private corporate bonds or the issuing enterprise changes the bond term but some bondholders do not agree to the change, leading to the issuing enterprise having to pay principal and interest according to the announced issuance plan in accordance with Article 2 of Decree 08/2023/ND-CP.
The Hanoi Stock Exchange adjusts the number of bonds registered for trading in cases where the issuing enterprise repurchases early, swaps, converts part of private corporate bonds, or the issuing enterprise changes the bond term but some bondholders do not agree to the change, necessitating the enterprise to pay the bond principal and interest according to the announced issuance plan based on the principles:
- Comply with clause 3 Article 1 of Decree 65/2022/ND-CP.- In case of extending the bond term, the maximum period is no more than 2 years from the term in the announced bond issuance plan to investors.- For bondholders who do not agree to change the bond terms, the issuing enterprise is responsible for negotiating to ensure the investors' interests.
If there are bondholders who do not agree to the negotiation plan, the enterprise must fulfill all obligations to the bondholders according to the published bond issuance plan (even if the change in bond terms has been approved by representatives of over 65% of the total number of bonds).
When Must the Rights of Private Corporate Bondholders Be Exercised?
Based on clause 1 Article 8 of Circular 30/2023/TT-BTC, the cases in which the rights of private corporate bondholders must be exercised include:
- Seeking opinions from bondholders;- Paying bond principal and interest;- Converting convertible bonds;- Swapping bonds;- Early bond repurchase;- Other rights as prescribed by law.
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