create a mechanism to improve the bond and stock market

Kinhtedothi - Discussing in groups about 1 law amending 7 laws, delegates of the Hanoi National Assembly Delegation hope that the Law will remove obstacles, helping to improve the bond and stock markets...

On the afternoon of October 29, 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 Securities Law, the Accounting Law, the Independent Audit Law, the State Budget Law, the Law on Management and Use of Public Assets, the Tax Administration Law and the National Reserve Law (1 law amending 7 laws).

The leader of the Hanoi National Assembly Delegation chaired the group discussion session. Photo: Hong Thai

Chairing the group discussion session at the Hanoi National Assembly Delegation were Politburo member, Secretary of the City Party Committee Bui Thi Minh Hoai - Head of the Hanoi National Assembly Delegation; Deputy Secretary of the City Party Committee, Chairman of the City 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

Concerned about the amendment and supplementation of a number of articles of the Securities Law, National Assembly delegate Le Quan said that the securities market has two important products: stocks and bonds. In particular, delegates and voters are particularly interested in the bond market because many cases related to this market have occurred recently.

National Assembly Delegate Le Quan speaks at the group discussion. Photo: Hong Thai

Pointing out the advantages and disadvantages of the bond market in recent times, delegate Le Quan said that this is an important content to mobilize cash flow for production and business development, an effective mobilization channel for businesses and investors. The amendment of the Law this time with specific contents helps reduce risks for investors and businesses, especially for non-professional investors; helping 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.

From there, delegate Le Quan proposed to amend and supplement a number of articles of the Securities Law, which should include provisions that attach responsibility to auditing units for corporate audit reports, and that if the audit is incorrect, they must take full responsibility. At the same time, there should be regulations that bind and prohibit acts of manipulating the stock market through correcting false financial reports.

Encourage 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, and the risks were very high.

National Assembly delegate Hoang Van Cuong speaks at the group discussion. Photo: Hong Thai

The draft law stipulates that only institutional investors can directly buy private bonds, while individual investors are not allowed to buy. Enterprises, organizations, and businesses that want to sell private bonds must have a credit rating plus collateral or a bank guarantee.

According to delegate Hoang Van Cuong, such a regulation requires businesses that issue bonds to raise money to be responsible for their bonds. This regulation also encourages the development of a healthy bond market. Bond investment is not a matter of luck, but must be professional, or through professional contractors.

However, delegates noted that tightening regulations means that many businesses will have more difficulty issuing bonds, selling them quickly, for a large amount, and mobilizing capital more effectively. This will help limit risks to buyers.

Delegate Hoang Van Cuong suggested that the drafting agency consider allowing professional individuals to buy these individual bonds after three years before selling them, instead of one year as before. According to the delegate, such a regulation would make individual investors have the same responsibility as strategic investors, while the role of strategic investors is "to be loyal and lead the enterprise".

"Increasing the time limit for transferring individual bonds to 3 years will reduce the flexibility of capital mobilization for businesses in the bond market," said delegate Hoang Van Cuong, and suggested that the Government should keep the current regulation, which means that after 1 year of holding individual bonds, investors can transfer them.

National Assembly delegate Le Nhat Thanh speaks at the group discussion. Photo: Hong Thai

Review of regulations on stock market manipulation

Regarding the amendment of the Securities Law related to conditions for professional investors (Clause 1, Article 1), National Assembly delegate 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 in the direction of removing the regulation that professional securities investors are individuals, only professional securities investors who are organizations are allowed to participate in purchasing, trading, and transferring individual corporate bonds.

According to the delegate, although this regulation can reduce the risks of the individual corporate bond market as in the recent past, currently, about 90% of investors participating in the individual bond market are individual investors and this is a popular and regular securities investment channel of individual investors, helping to mobilize important capital for businesses.

Delegate Le Nhat Thanh also proposed to continue researching and supplementing the responsibilities of securities investors in the direction of internalizing the provisions of the current decree regulating the offering and trading of individual 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 must be consistent with the provisions of the Penal Code. However, it is necessary to calculate to regulate more fully and completely according to the current practice.

In addition, delegate Le Nhat Thanh proposed to review and revise the description of behaviors into two groups of behaviors: (1) behavior of providing incorrect information and (2) creating fake transactions to manipulate stock prices to avoid repetitive descriptions or unclear differences with the behaviors. In describing the behaviors, it is necessary to review and accurately identify them to avoid missing violations.

Source: https://kinhtedothi.vn/mot-luat-sua-7-luat-tao-co-che-de-lanh-manh-hoa-thi-truong-trai-phieu-chung-khoan.html