Together with the sturdy development and growth of the company bond market, the variety of particular person bond purchases by investments tends to extend in a short time. Particularly, when the epidemic state of affairs is difficult, different funding channels have many dangers, whereas many companies use “bait” with excessive rates of interest, 1.5 instances larger than common rates of interest. deposit price of banks to mobilize capital from traders.
In simply over per week, the Ministry of Finance has suggested traders to pour capital into the company bond channel twice.
On September 9, the Ministry of Finance and the State Securities Fee introduced that as quickly because the state efficiently controls the Covid-19 pandemic, the Securities Fee will examine securities corporations of their classification. distribute or invite traders who should not eligible to purchase privately-issued company bonds. On the similar time, it will likely be fiercely and strictly dealt with if securities corporations make errors.
Based on the Ministry of Finance, the company bond market has grown quickly in recent times. The amount of personal company bond issuance within the first 7 months of 2021 elevated by 17% over the identical interval in 2020.
Nevertheless, the Ministry of Finance mentioned that, along with the constructive impression of serving to companies mobilize capital for manufacturing and enterprise, the person company bond market has many potential dangers. Some enterprises, particularly actual property enterprises, challenge company bonds with excessive rates of interest. The standard of safety property of bonds is restricted (primarily funding initiatives, property to be fashioned sooner or later or shares of actual property enterprises). Particularly, with the participation of small and retail particular person traders…
Based on the Securities and Alternate Fee, the market is showing in a state of affairs of “circumvention of the regulation”. There are a selection of organizations offering middleman providers to solicit and distribute company bonds, when they aren’t but certified as skilled traders. Subsequently, the regulator has now strengthened many measures to oversee securities buying and selling organizations in advising and providing particular person company bonds to the market.
At the moment, this company is finalizing the Decree amending and supplementing from Decree 156/2020; during which, amending and supplementing the conduct within the non-public placement of securities to make the outline extra in line with the provisions of Decree 155 and Decree 153 on non-public placement actions.
Based on the provisions of Decree 153/2020/ND-CP, the State Securities Fee will handle and supervise securities corporations in offering consulting providers on dossiers of personal placement of company bonds. .
On that foundation, the Securities Fee will obtain and deal with violations within the providing and buying and selling of particular person company bonds available in the market based on rules.
On the similar time, the regulatory businesses may even proceed to strengthen info dissemination to traders, issuers… in compliance with rules on provide and buying and selling of company bonds, particularly particular person company bonds. .
