What are responsibilities of the Stock Exchange in trading of privately placed corporate bonds in Vietnam?

What are responsibilities of the Stock Exchange in trading of privately placed corporate bonds in Vietnam?

Pursuant to Article 38 of the Decree 153/2020/NĐ-CP (amended by Clause 27 Article 1 of the Decree 65/2022/NĐ-CP) stipulating as follows:

1. Consolidate information on issuance of corporate bonds for publishing on the corporate bond information webpage and reporting as prescribed herein.

2. Organize and supervise trading of privately placed bonds at the Stock Exchange according to regulations herein and the Ministry of Finance’s guidelines.

3. Perform management and supervision tasks to ensure the adequate and timely disclosure of information and reporting by issuers, bidding, underwriting and brokerage service providers as prescribed in this Decree and guidelines given by the Ministry of Finance of Vietnam.

4. When detecting any violations against regulations on information disclosure, reporting and trading of privately placed corporate bonds on the SE, request the violating issuer and relevant entities in writing to provide explanations and/or additional information, or report the case to SSC for consideration.

5. Promulgate regulations on receipt and supervision of information disclosure, reporting and operation of the corporate bond information webpage; regulations on trading of privately placed corporate bonds after obtaining approval from SSC.

What are responsibilities of State Securities Commission (SSC) in trading of privately placed corporate bonds in Vietnam?

Pursuant to Clause 29 Article 1 of the Decree 65/2022/NĐ-CP stipulating responsibilities of SSC in trading of privately placed corporate bonds in Vietnam as follows:

1. Give opinions about the private placement of convertible bonds and warrant-linked bonds by public companies, securities companies and fund management companies in the domestic market; give opinions about the offering of bonds in the international market by public companies, securities companies and fund management companies in accordance with the provisions of this Decree and the Law on securities.

2. Consider giving approval for regulations on receipt and supervision of information disclosure, reporting and operation of the corporate bond information webpage, regulations on trading of privately placed corporate bonds, and regulations on registration, depositing and payment for privately placed corporate bonds in accordance with the provisions of this Decree.

3. Manage and supervise securities trading and provision of securities-related services in accordance with regulations of the Law on securities, including provision of counseling on bond offering dossiers, bidding, underwriting and brokerage services as prescribed in this Decree; manage and supervise VSDC's processing of applications for registration, depositing and transfer of ownership of bonds; manage and supervise the SE's disclosure of information, reporting and trading of corporate bonds in accordance with regulations of the Law on securities and this Decree.

4. On the basis of management and supervision of securities trading of securities companies, supervision reports submitted by the SE and VSDC, and reports submitted by bondholders' representatives, receive and take appropriate actions against violations regarding offering and trading of corporate bonds privately placed on the domestic market in accordance with this Decree and the Law on Securities. If any signs of violation are found, SSC shall conduct inspection of the SE, VSDC, service providers and issuers in accordance with the Law on Securities.

What are responsibilities of State Bank of Vietnam (SBV) in trading of privately placed corporate bonds? 

Pursuant to Article 40 of the Decree 153/2020/NĐ-CP (amended by Clause 30 Article 1 of the Decree 65/2022/NĐ-CP) stipulating responsibilities of SBV in trading of privately placed corporate bonds as follows:

1. Provide guidelines for bond offering and trading of corporate bonds by credit institutions.

2. Inspect and supervise credit institutions’ capital mobilization by means of bond issuance; consider granting license to commercial banks and FBBs to provide corporate bond brokerage services; supervise commercial banks and FBBs’ provision of corporate bond brokerage services and fulfillment of commitments to redeem bonds of other issuers in accordance with regulations of the Law on Credit Institutions and its guiding documents.

3. Cooperate with the Ministry of Finance (via SSC) in inspecting and supervising credit institutions’ provision of bidding and brokerage services according to regulations herein and relevant laws.

4. Perform state management of foreign exchange and enterprises’ borrowing and repayment of foreign debts which are not yet guaranteed by the Government in respect of enterprises issuing bonds in the international market.

Best regards!