To issue the Regulation on trading of privately placed corporate bonds at the Hanoi Stock Exchange? What are the detailed applications and procedures?
To issue the Regulation on trading of privately placed corporate bonds at the Hanoi Stock Exchange?
On July 10, 2023, the Vietnam Stock Exchange issued Decision 56/QD-SGDVN in 2023 promulgating the Regulation on trading of privately placed corporate bonds at the Hanoi Stock Exchange (HNX).
Accordingly, the contents of the Regulations specify the registration of transactions, change of transaction information, suspension, restoration of transactions and cancellation of transaction registration, organization and management of private corporate bond transactions. as well as the State's policies on developing the privately placed corporate bond market.
Previously, Article 16 of Decree 153/2020/ND-CP stipulates that individual corporate bond transactions are carried out at depository institutions, in which the main form of transaction is transfer between bondholders and transfer between investors and depository institutions.
Trading activities are usually carried out on their own trading systems developed by securities companies for their customers.
However, after Decree 65/2022/ND-CP takes effect (September 16, 2022), enterprises must register for trading of issued bonds on the individual corporate bond trading system and decide to Decision 56/QD-SGDVN has just been issued guiding the trading of privately placed corporate bonds on the HNX.
To issue the Regulation on trading of privately placed corporate bonds at the Hanoi Stock Exchange? What are the detailed applications and procedures?
What is the application for privately placed corporate bonds in Vietnam?
Pursuant to Article 5 of the Regulation on individual corporate bond trading (hereinafter referred to as the Regulation) issued together with Decision 56/QD-SGDVN guiding the application for registration of privately placed corporate bonds including:
- An application form for registration of bond trading, made according to the form specified in Appendix VI issued together with Decree 65/2022/ND-CP.
- License for establishment and operation, certificate of business registration as prescribed by law.
- Certificate of bond registration of VSDC.
- Decision on approval and approval of the bond issuance plan.
- Written approval of the competent state management agency in charge of bond issuance in accordance with specialized laws (if any).
- The credit rating results of the credit rating organization for the bond issuer or the type of bond to be issued (if any).
What are the detailed procedures for registration of privately placed corporate bonds in Vietnam?
Pursuant to Article 6 of the Regulation promulgated together with Decision 56/QD-SGDVN stipulating the order and procedures for registration of individual corporate bond transactions as follows:
Step 1: Enterprises registering to trade corporate bonds individually send registration documents for trading electronically through the Corporate Bond Information Page for HNX (https://cbonds.hnx.vn/)
In case the application is incomplete or invalid:
- Within 03 working days from the date of receiving the dossier, the HNX shall request the issuing enterprise to amend and supplement the dossier.
- Within 05 working days from the date the HNX requests to amend and supplement the dossier, the trading registration enterprise must complete the transaction registration dossier as required.
Step 2: Within 05 working days from the date of receiving the complete and valid dossier, the Hanoi Stock Exchange (HNX) will issue a notice about the bond being registered for trading on the trading system. privately placed corporate bonds on the HNX, and at the same time disclose information on the website of HNX.
In case of refusal, the HNX must reply in writing and clearly state the reason.
Step 3: Transaction
First trading date of privately placed corporate bonds:
- The first trading date is determined based on the expected transaction time in the application for registration of bond trading (in the transaction registration dossier) but must be at least 03 working days away and not more than 10 working days from the date HNX issues a notice about the bond being registered for trading.
- In case the first trading day does not meet the time limit specified at Point a of this Clause, within 03 working days from the date HNX issues a notice that the bonds have been registered for trading, the enterprise must re-register the first trading day. The first trading day must be at least 03 working days from the date HNX receives the re-registration letter on the first trading day and no later than 10 working days from the date HNX issues a notice about the bonds being registered. sign transaction.
- In case the enterprise fails to re-register the first trading day within 03 working days from the date on which the HNX issues a notice that the bonds have been registered for trading or the first trading day does not meet the provisions of point b. In this clause, HNX will announce that the first trading day of the bonds is the 10th working day from the date HNX issues notice that the bonds have been registered for trading.
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