Regulations on suspension and restoration of individual corporate bond transactions in Vietnam

Regulations on suspension and restoration of individual corporate bond transactions in Vietnam (Internet image)

Guidance in Decision 56/QD-SGDVN 2023 on Regulations on private corporate bond trading at the Hanoi Stock Exchange issued by the Vietnam Stock Exchange.

Regulations on suspension and restoration of individual corporate bond transactions in Vietnam

1. Hanoi Stock Exchange temporarily suspends trading of bonds registered for trading when one of the following cases occurs:

- At the request of the enterprise, register the transaction according to the form specified in Appendix No. 02 issued with this Regulation, notify the final registration date, and confirm the list of bond owners of VSDC regarding the implementation of buying back bonds before maturity, converting bonds into stocks, exchanging bonds, and other cases according to the provisions of law.

- At the request of the State Securities Commission or a competent state agency.

2. Hanoi Stock Exchange is responsible for disclosing information on the corporate bond information page about bonds that are temporarily suspended from trading.

3. Hanoi Stock Exchange restores trading of bonds registered for trading in the following cases:

- In the case specified in Point a, Clause 1, Article 13 of the Regulations, bonds registered for trading will be traded again after the Hanoi Stock Exchange receives notice from VSDC and proposals for transaction restoration by the enterprise registering for transactions according to the form specified in Appendix No. 02 issued with this Regulation.

- In the case specified in Point b, Clause 1, Article 13 of the Regulations, bonds registered for trading will be restored to trading after receiving a document from the State Securities Commission or a competent state agency on the restoration of trading.

4. Hanoi Stock Exchange is responsible for disclosing information on the Corporate Bond Information Page regarding the restoration of trading in bonds registered for trading.

Cancellation of registration for individual corporate bond trading in Vietnam

1. Individual corporate bonds have their trading registration canceled according to the provisions of Clause 13, Article 1 of Decree 65/2020/ND-CP, specifically:

- The bond reaches maturity, or the issuing enterprise converts, buys back, or swaps the entire bond before maturity.

- The bond-issuing enterprise has had its business registration certificate or license to establish and operate in a specialized field revoked.

- Hanoi Stock Exchange discovered that the issuing enterprise falsified transaction registration documents and falsified transaction registration change documents.

- The bond-issuing enterprise ceases to exist due to dissolution or bankruptcy, or it divides or splits the enterprise.

2. Enterprises registering for transactions must publish information on the Corporate Bond Information Page within 24 hours from the occurrence of the cases specified in Points b and d, Clause 1, Article 13 of the Regulations.

3. Hanoi Stock Exchange cancels bond trading registration and follows the following regulations:

- In the case specified in Point a, Clause 1, Article 13 of the Regulations, the Hanoi Stock Exchange cancels bond trading registration specifically as follows:

+ In case of cancellation due to maturity, Hanoi Stock Exchange cancels bond trading registration based on the bond maturity time. The last trading date is determined based on the notice of the last registration date and confirmation of the list of bond holders of VSDC or the maturity date of the bond in case the Hanoi Stock Exchange does not receive the notice;

+ In case of cancellation due to the issuer converting, repurchasing, or exchanging the entire bond before maturity, the Hanoi Stock Exchange cancels the trading registration based on VSDC's notice of change in trading registration.
after the enterprise completes the conversion, repurchase, or swap of all bonds before maturity. The last trading date is determined based on the announcement of the last registration date and confirmation of VSDC's list of bond owners.

- In the case specified in Points b and d, Clause 1, Article 13 of the Regulations, the Hanoi Stock Exchange cancels bond trading registration on the basis of information published by the enterprise registering for trading on the Corporate Bond Information Page.

4. Hanoi Stock Exchange notifies issuing businesses and publishes information on the Corporate Bond Information Page about the cancellation of transaction registration.

More details can be found in Decision 56/QD-SGDVN in 2023.

Duong Chau Thanh

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