PM orders stricter monitoring of corporate bond issuance and land auctions
PM orders stricter monitoring of corporate bond issuance and land auctions
After a number of violations reported in corporate bond issuances and the auctions of land use rights, the Prime Minister has called for stricter monitoring over these activities.
In a telegram released on Thursday, Prime Minister Pham Minh Chinh asked the Minister of Public Security to direct local police to urgently investigate, verify and strictly handle violations to ensure the correct issuance, investment and use of corporate bond capital, as well as overall transparency.
The Ministry of Public Security is also to prevent and handle abuse and violations in the auctions of land use rights to make profit, causing disturbances in the market.
The PM also requests the Minister of Finance and the Governor of the State Bank of Viet Nam (SBV) to closely monitor and supervise financial and monetary market developments, issuance, investment, distribution, transactions and use of corporate bond capital.
The two agencies need to actively review the regulatory framework to develop responses and implement solutions to develop markets and stabilise investors' sentiment.
SBV shall supervise and inspect credit institutions investing in corporate bonds, providing underwriting securities, investment, and distribution services for corporate bonds, especially bonds of real estate enterprises, enterprises with large issuance volume and high interest rates, or negative business results and no collateral.
The Ministry of Finance and the Securities Commission shall inspect and supervise the issuance, investment, distribution, trading and use of capital raised from bond issuances.
They also have to review the regulations on the corporate bond market and the issuance and investment of corporate bonds. It aims to amend and supplement rules to ensure healthy and transparent market development, as well as introduce sanctions for early warnings and market risk management.
The results of the inspection and review should be reported to the PM before April 15 and 30.
Regarding auctions of land use rights, the PM asked the Minister of Natural Resources and Environment to inspect the organisation of land and real estate auctions in localities. In case there are abnormal signs causing market instability, the ministry and related agencies need to clarify and handle mistakes, and not let profiteering occur.
The ministry also needs to review the legal provisions on land auctions to advise on amending and supplementing rules to prevent profiteering.
Meanwhile, BVS will review lending to investors participating in land auctions, and impose fines if necessary.
The PM also requested Chairs of People's Committees of provinces and cities to review and inspect the organisation of land auctions, promptly detect and strictly handle violations and prevent acts of taking advantage of auctions for personal gain, causing uncertainties in the market.
The corporate bond market is an important capital mobilisation channel in the medium- and long-term for enterprises in accordance with the Government's policy on balancing development between the capital market and the money and credit markets.
However, recently, violations have emerged in corporate bond issuances, while there are still many issues and potential risks in the auctions of land use rights.
A few days ago, the Investigative Police Agency of the Ministry of Public Security decided to prosecute and detain Do Anh Dung, Chairman of Tan Hoang Minh Group, and five other people for obtaining property by fraud.
Previously, Tan Hoang Minh was also drawing the market's attention related to a deposit of nearly VND588.5 billion (US$25.7 million) for the 3-12 land plot in Thu Thiem New Urban Area.
