REVIEW
of
FINANCE -
Feb. 2018
43
time, thedraftdecree regulates theestablishment of
specialized information pages on the stock market
at the Stock Exchange, thereby contributing to
increasing transparency of the market, protecting
investors, enabling state management agencies to
effectively supervise and monitor the market, and
support the liquidity of the secondary market of
bonds.
Apart from the regulations on the direction
of enterprises to issue bonds in depository
organizations, the draft decree prescribes the
responsibilities of the depository organizations
in reporting and supplying information on
bond owners, ensuring the scope of issuance of
individual bonds and providing information on
the repayment of principals and interests of bonds
to the Stock Exchange and management agencies.
In addition to the above amendments and
supplements, experts also proposed to disclose
information at the highest level, especially
information on corporate health, the release to
meet the need to meet each other. The drafting
agency should detail the mechanism for sharing
information from the Stock Exchange with
investors when they have the demand.
References:
1. Parliment Enterprise Law;
2. Parliment Law on management and use of state capital invested in
production and business at enterprises;
3. Parliment Securities Law;
4. The Ministry of Finance (2012) Circular No. 211/2012/TT-BTC guiding
the implementation of a number of articles of the Government’s Decree
No. 90/2011 / ND-CP on the issuance of corporate bonds.
of enterprises which are not guaranteed by the
Government on the international market, the
draft decree regulates that the issuance of bonds
in the domestic market, apart from the approval
authority as for ordinary enterprises, the issuance
of bonds must be approved by the representative
office of the owner in accordance with the law on
themobilization of capital of state enterprises (Law
on Management and Use of State capital invested
in production and business in enterprises and
guidelines). For bond issuance in the international
market, the bond issuance plan must be approved
by the General Assembly of Shareholders or the
Board of Directors in accordance with the Charter
of the company. For the plan of issuance of
convertible bonds, the plan to issue bonds with
the warrant must be approved by the General
Assembly of Shareholders. For state-owned
enterprises, in addition to the approval authority
as for ordinary enterprises, the bond issuance
plan must be approved by the representative
office of the owner in accordance with the law on
the mobilization of capital of state enterprises.
Regarding the direction of overcoming the
inadequacies of regulations on information
disclosure and reporting, to enhance the openness
and transparency in the mobilization of bonds to
protect investors, to innovate mechanisms and
methods of information disclosure according
to international practice, the draft decree also
specifies the manner and contents of information
disclosure, including: pre-release information
disclosure, issuance results publicity, periodic
disclosure, extraordinary disclosure. At the same
Public
Individual
FIGURE 3: CORPORATE BONDS BY TYPE OF ISSUANCE
Source: VCBS
