The topic “Van Truong Phat bondholders’ long miles” of the Investment Newspaper on the morning of April 24, 2023 brought hot information about the mystery of VND 10,000 billion of bonds. Accordingly, at the end of the article, it is questioned whether TVSI Securities Company and SCB Bank are easily innocent?
1. Regulations on individual buyers of corporate bonds in the domestic market
Decree 65/2022/ND-CP stipulates that investors buy bonds as follows:
For non-convertible bonds without warrants, the buyers are:
– Professional stock investors.
For convertible bonds and warrants, the buyers are:
– Professional stock investor;
– And strategic securities investors.
According to the above regulations, bonds of individual enterprises can only be sold to professional investors. So who are those professional investors? And how is it determined?
2. Regulations on Professional Securities Investors who are individuals
The Securities Law 2019 regulates individual investors as follows:
– Persons with securities practice certificates;
– Holding a list of listed securities, registered for trading with a value of at least VND 2 billion;
– Have taxable income in the most recent year of at least 01 billion VND.
3. Determining the status of a professional stock investor
Responsibility for determining the status of an investor in the Securities Industry is regulated in Decree 155/2020/ND-CP.
When trading privately issued securities on the trading system of the Stock Exchange. Securities companies must determine the status of securities investors before making securities purchase transactions.
In case of privately issued securities that have not been centrally traded. The registration and depository organization must determine the status of an industrialized securities investor before carrying out the transfer of ownership.
4. Documents to determine the status of a professional securities investor as an individual
For individuals who hold securities practice certificates, identifying documents include:
– Valid ID card or Citizen Identification or Passport;
– Valid securities practice certificate.
For the remaining 02 individuals who are investors according to section 2, this article, the identification documents include:
– Valid ID card or Citizen Identification or Passport;
– Confirmation of the securities company where the investor opens a trading account;
– Or submitted tax declaration documents or tax deduction documents paid in the most recent year.
5. TVSI and SCB are innocent in the “mystery” of Van Truong Phat bonds?
TVSI is the agent issuing Van Truong Phat bonds, SCB is the organization receiving collateral and managing the account.
According to the content from Investment Newspaper, investors who purchase bonds state that they are not securities investors. Furthermore, they open accounts at SCB with the intention of saving money and seeking advice on bonds. However, the consultants providing advice fail to mention crucial information about the bonds, including the bond issuer, among other details. Consequently, these investors remain unaware of TVSI or Van Truong Phat.
Additionally, we still need to identify the dossiers of qualified bondholders as securities investors. However, many of them have only received dossiers and papers with already opened pages to sign. SCB consultants assigned them on-site to sign without providing any further explanation, even after several days of “depositing the money” and having a mandate. That is, they were also not provided with clear information about the bonds they invested in before and after paying for the bonds.
If the above details are true and have legal proof, then the two organizations have shown signs of violating the provisions on Bond Buyers or even violating prohibited acts in the Law. Securities activities in Article 12, Securities Law 2019 when there are acts of hiding information or omitting necessary information causing serious misunderstanding… These violations have made many investors unable to fulfill their responsibilities. and receive your benefits according to the provisions of Article 8, Decree 153/2020/ND-CP dated December 31, 2020.
Harley Miller Law Firm “HMLF”
Head office: 14th floor, HM Town building, 412 Nguyen Thi Minh Khai, Ward 05, District 3, Ho Chi Minh City.
Phone number: +84 937215585
Website: hmlf.vn Email: miller@hmlf.vn
