On September 16, 2022, the Government issued Decree 65/2022/ND-CP requiring enterprises to register and conduct issued transactions of bonds on the individual corporate bond trading system at the Stock Exchange. Implementing the above-mentioned regulations, on July 10, 2023, the Vietnam Stock Exchange issued Decision 56/QD-SGDVN ("Decision 56") on the regulation of trading individual corporate bonds at the Hanoi Stock Exchange, applicable to enterprises offering individual corporate bonds, member of individual bonds trading members of the Vietnam Stock Exchange.
Here, ATA Legal Services will summarize the outstanding regulations on individual bonds trading regulations in Decision 56 for clients to be interested in and follow.
1. Procedures and records of transactions of bonds
According to Decision 56, the registration of transactions of bonds at the Hanoi Stock Exchange shall be carried out under the following procedures:
Step 1: Prepare and submit the application for registration of transactions of bonds
a) Applicant: Enterprises offering private placement of bonds.
b) Authority: Hanoi Stock Exchange.
c) Composition:
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No |
Records |
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1 |
An application for registration of transactions of bonds in the prescribed form.
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2 |
Documents proving the legal status of the applicant |
Establishment and operation licenses, and business registration certificates in accordance with the provisions of law. |
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3
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Documents proving approval for transactions of bonds |
Decision on approving the bond issuance plan. |
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Bond Registration Certificate of Vietnam Securities Depository and Clearing Corporation ("VSDC"). |
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Written approval of the competent state management agency on bond issuance in accordance with specialized laws (if any). |
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4 |
Other related documents |
Credit rating results of credit rating agencies for bond issuers or types of bonds issued (if any). |
d) Time limit for submitting the application for registration of transactions of bonds: At least 15 working days from the date the enterprise is granted the Bond Registration Certificate from VSDC.
e) Application form: Electronic (via Corporate Bond Information Page).
Step 2: Processing process
a. In case the application is complete and valid: within 05 working days from the date of receipt of a complete and valid application, the Hanoi Stock Exchange shall issue a notice of the bond registered for transaction on the individual corporate bond trading system. In case of refusal, Hanoi Stock Exchange must reply in writing clearly stating the reasons.
b. In case the application is incomplete and invalid: within 03 working days from the date of receipt of the application, the Hanoi Stock Exchange shall request the issuing enterprise to amend and supplement the dossier; within 05 working days from the date of request of the Hanoi Stock Exchange to amend and supplement the application, the transaction registration enterprise must complete the transaction registration dossier as required.
2. Regulations on the activities of trading bonds on the system
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Matters |
Regulations |
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First date of transaction |
Within 03 to 10 working days from the date the Hanoi Stock Exchange issues a notice of the bond registered for trading. (The specific first date of a transaction is determined based on the expected transaction time in the application for registration of transactions of bonds). |
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Type of transaction |
Normal Purchase and Sale Transactions. |
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Methods of transaction |
Agreed transaction methods, including: + E-agreement; and + Normal agreement. |
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Trading unit, minimum trading volume, base unit |
+ Trading volume unit: 01 bond. + Minimum trading volume: 01 bond. + Base unit: 01 VND. |
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Establishment of transaction |
Established when the buyer and seller confirm the transaction on the individual corporate bond trading system of the Hanoi Stock Exchange. |
3. Handling cases arising in transactions of individual corporate bonds
3.1. Suspension of transactions of bonds when one of the following cases occurs:
a) At the proposal of the enterprise registering the transaction in case of early redemption of bonds, conversion of bonds into shares, swapping bonds, and other cases as prescribed. Bonds are restored to trading when there is a notification of VSDC (confirmation of the list of bondholders) and a proposal on restoring transactions of the enterprise.
b) At the request of the State Securities Commission ("SSC") or competent authorities. Bonds are suspended for trading when written by the SSC or competent state agencies.
3.2. Cancel registration of transactions of bonds in one of the following cases:
a) Bonds reach maturity or the issuer converts, buys back, or swaps all bonds before maturity.
b) The bond issuer has its enterprise registration certificate or establishment license revoked and operates in specialized fields; termination of existence due to dissolution or bankruptcy or implementation of division or separation of enterprises.
c) Hanoi Stock Exchange detects that the issuing enterprise forges the transaction registration dossier, and forges the dossier of change of transaction registration.
Decision 56 is effective as of July 10, 2023.
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