Kinhtedothi - During group discussions on a law amending seven other laws, delegates from the Hanoi National Assembly delegation expressed their hope that the law would resolve obstacles and help to create a healthier bond and securities market...
On the afternoon of October 29th, continuing the program of the 8th Session, National Assembly deputies discussed in groups the Draft Law amending and supplementing a number of articles of the Law on Securities, the Law on Accounting, the Law on Independent Auditing, the Law on State Budget, the Law on Management and Use of Public Assets, the Law on Tax Management and the Law on National Reserves (1 law amending 7 laws).
Chairing the group discussion session at the Hanoi National Assembly Delegation were Politburo member, Secretary of the Hanoi Party Committee Bui Thi Minh Hoai - Head of the Hanoi National Assembly Delegation; Deputy Secretary of the Hanoi Party Committee, Chairman of the Hanoi People's Council Nguyen Ngoc Tuan - Deputy Head of the Hanoi National Assembly Delegation; Deputy Head of the Hanoi National Assembly Delegation Pham Thi Thanh Mai.
Help people feel more secure when investing in bonds
Regarding the amendment and supplementation of several articles of the Securities Law, National Assembly representative Le Quan stated that the securities market has two important products: stocks and bonds. Among these, representatives and voters are particularly concerned about the bond market because of the numerous cases related to this market that have occurred recently.
Highlighting the advantages and disadvantages of the bond market in recent times, delegate Le Quan stated that this is an important aspect for mobilizing capital for production and business development, and an effective fundraising channel for businesses and investors. This amendment to the Law, with its specific provisions, helps reduce risks for investors and businesses, especially for inexperienced investors; and helps people feel more secure when investing in bonds.
Along with that, providing conditions and legal corridors for businesses to comply with when issuing bonds helps the market become healthier and people feel more secure when investing.
Therefore, Representative Le Quan proposed amending and supplementing several articles of the Securities Law to include provisions that hold auditing firms accountable for corporate audit reports, holding them fully responsible if audits are incorrect. At the same time, there should be regulations to bind and prohibit the manipulation of the securities market through the alteration of inaccurate financial statements.
Encouraging the development of a healthy bond market
Assessing the drastic amendment of the Law in determining how professional individual securities investors are and where they are entitled to invest, National Assembly delegate Hoang Van Cuong said that the amendment should avoid the situation like in recent years, when many people saw corporate bonds sold privately with high interest rates and rushed to buy them, which was very risky.
The draft law stipulates that only institutional investors are allowed to directly purchase private placement bonds; individual investors are prohibited. Businesses and organizations wishing to sell private placement bonds must have a credit rating and collateral or a bank guarantee.
According to Representative Hoang Van Cuong, such regulations require businesses issuing bonds to raise funds to be responsible for their bonds. This regulation also encourages the development of a healthy bond market. Investing in bonds is not a matter of luck, but must be a professional investment, or done through professional brokers.
However, delegates noted that tightening regulations means more difficulties for businesses in issuing bonds, making it harder to sell them quickly and in large quantities, and raising capital more effectively. This will help limit the risks for buyers.
Representative Hoang Van Cuong suggested that the drafting agency consider requiring professional individual investors who purchase these privately placed bonds to wait three years before selling them, instead of one year as before. According to the representative, such a regulation would give individual investors the same responsibility as strategic investors, while the role of a strategic investor is to "be loyal and lead the enterprise."
"Extending the permitted transfer period for private placement bonds to 3 years will reduce the flexibility of capital raising for businesses in the bond market," said representative Hoang Van Cuong, while suggesting that the Government should maintain the current regulation, meaning that investors can transfer private placement bonds one year after holding them.
Reviewing regulations on stock market manipulation
Regarding the amendments to the Securities Law concerning the conditions for professional investors (Clause 1, Article 1), National Assembly representative Le Nhat Thanh agreed with the report of the Finance and Budget Committee on the proposal to consider and fully assess the impact of the regulation that removes the provision designating individuals as professional securities investors, allowing only organizations to participate in the purchase, trading, and transfer of privately placed corporate bonds.
According to the delegates, although this regulation may mitigate the risks of the private corporate bond market as seen in the past, currently, about 90% of investors participating in the private bond market are individual investors, and this is a popular and frequent securities investment channel for individual investors, helping to raise important capital for businesses.
Representative Le Nhat Thanh also suggested further research and supplementation of the responsibilities of securities investors by incorporating into domestic law the provisions of the current decree regulating the offering and trading of privately placed corporate bonds in the domestic market and the offering of corporate bonds to the international market.
Regarding the act of manipulating the stock market (Clause 3, Article 1), delegates agreed that the regulation should be consistent with the provisions of the Penal Code; however, further consideration is needed to make the regulation more comprehensive and complete in accordance with current practices.
In addition, delegate Le Nhat Thanh suggested reviewing and revising the description of behaviors into two groups of behaviors: (1) providing false information and (2) creating fake transactions to manipulate stock prices to avoid repetitive descriptions or unclear differences with other behaviors. In describing behaviors, it is necessary to review and accurately identify violations to avoid overlooking them.
Source: https://kinhtedothi.vn/mot-luat-sua-7-luat-tao-co-che-de-lanh-manh-hoa-thi-truong-trai-phieu-chung-khoan.html
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