Vietnam: How is the investor's confirmation form before buying bonds now regulated?
How is the investor's confirmation form before buying bonds currently regulated in Vietnam?
Currently, in order for investors to confirm before buying bonds, they must make a confirmation of investors before buying bonds.
The investor's confirmation form before buying bonds is currently made according to Appendix V issued together with Decree 65/2022/ND-CP as follows:
Download the investor's confirmation form before buying bonds today: Here.
Vietnam: How is the investor's confirmation form before buying bonds now regulated?
Who will be able to buy bonds in Vietnam?
Pursuant to Clause 1 Article 8 of Decree 153/2020/ND-CP as amended by Clause 6 Article 1 of Decree 65/2022/ND-CP stipulates as follows:
Article 8. Bond buyers
1. Eligible bond buyers
a) Buyers of non-convertible bonds without warrant are professional investors as defined in the Law on securities.
b) Buyers of convertible bonds and warrant-linked bonds are professional investors and strategic investors of which the number of strategic investors of an issue is limited to 100.
c) Professional investors are investors that have financial capacity or securities qualifications as prescribed in Article 11 of the Law on securities. Organizations shall identify professional investors and obtain documents serving identification of professional investors as prescribed in Article 4 and Article 5 of the Government’s Decree No. 155/2020/ND-CP dated December 31, 2020 on elaboration of some articles of the Law on securities and its amending or superseding documents (hereinafter referred to as “Decree No. 155/2020/ND-CP”), except the identification of professional investors prescribed in Point d of this Article.
d) An individual that is identified as a professional investor as prescribed in Point d Clause 1 Article 11 of the Law on Securities shall be eligible to buy privately placed bonds if he/she holds a quantity of listed or registered securities, excluding securities borrowed to conduct margin transactions and those of repo transactions, of which the daily average price determined in a minimum period of 180 consecutive days preceding the date on which he/she is identified as a professional investor shall not be lower than VND 02 billion. The certification of a professional investor status as prescribed in this Point shall be valid for 03 months from the date of certification.
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According to the above provisions, professional securities investors will be able to buy non-convertible bonds without warrants.
Professional securities investors and strategic investors will be the ones who can buy convertible bonds and bonds with warrants.
What are the responsibilities of investors when buying bonds in Vietnam?
Pursuant to Clause 2 Article 8 of Decree 153/2020/ND-CP amended by Clause 6 Article 1 of Decree 65/2022/ND-CP stipulating the responsibilities of investors when buying bonds as follows:
- Full access to information disclosure contents of the issuing enterprise; understand the conditions, terms of bonds and other commitments of the issuing enterprise before deciding to buy and trade bonds.
- Understand the risks arising in investing and trading bonds; understand and ensure compliance with regulations on investors, individual corporate bond transactions as prescribed in this Decree and relevant laws.
- Self-assessment, self-responsibility for their investment decisions and self-responsibility for risks arising in investing and trading bonds. The State does not guarantee that enterprises issuing bonds pay in full, on time interest, bond principal when due and other rights for investors to buy bonds.
- Before buying bonds (both in the primary and secondary markets), investors must sign a document confirming that they have implemented the provisions of Points a, b and c of this Clause and are solely responsible for their decision to buy bonds after signing this confirmation document. The written confirmation shall comply with the form specified in Appendix V promulgated together with this Decree and must be stored in the record of offering when issuing bonds or at the securities company where the investor conducts bond transactions in accordance with the provisions of law.
- Conduct bond transactions as prescribed in Article 16 of this Decree; may not sell or jointly contribute bond investment capital with investors who are not professional securities investors in any form. The mobilization of capital and the purchase and investment of corporate bonds by credit institutions, foreign bank branches and fund management companies shall comply with the provisions of specialized laws.
- When selling bonds on the secondary market, they must provide full disclosure contents of the issuing enterprise as prescribed in this Decree to investors to buy bonds.
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