Eight issuers sanctioned for violating corporate bond offering

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Eight of nine inspected issuers were sanctioned for violating the corporate bond offering.

Mr. Le Cong Dien, Deputy Director of The Public Company Supervision Department under the State Securities Commission, said that since October 2021, through inspection of nine issuers, including four non-public companies (extraordinary inspection) and five public companies (periodic inspection), eight companies showed signs of violations.

In which, two non-public companies violated the provisions of the Law on Securities. Specifically, Apec Group JSC and VsetGroup JSC made public offering without registration with the SSC. The companies were fined VND600 million each and requested to withdraw the issued bonds and refund investors.

The other two non-public issuers, namely Hong Hoang Investment and Trade JSC, and Seaside Homes Real Estate Development and Investment Co., Ltd., were determined to have violated the deadline for information announcement described in Decree 153/2020/ND-CP and were fined VND70 million.

Through periodic inspection of four public companies including Dong Nai Traffic Works JSC, Tan Phu Vietnam JSC, Danh Khoi Group JSC, VRC Real Estate and Investment JSC by the SSC, these companies were identified as violating the obligation to information disclosure and are being handled.

In addition, Mr. Dien said that after reviewing the investors’ applications, the SSC fined Viet Hung Industrial Investment JSC for violating the disclosure of information VND60 million.

For securities companies, the SCC presided over and worked with relevant units under the Ministry of Finance and the Hanoi Stock Exchange (HNX) to conduct 30 inspections on 21 securities companies of compliance with the provisions of Decree 153/2020/ND-CP.

As a result, of 21 inspected securities companies (including seven securities companies that were inspected on schedule and 14 others inspected in an unscheduled manner) there are six securities companies with violations related to the service provision of private placement service of corporate bonds.

Specifically, Vietnam International Securities JSC provided consulting service for corporate bond private placement documents, depository agency service, and transfer service of privately placed corporate bonds without SSC’s permission for issuance guarantee and was fined VND250 million.

Thanh Cong Securities JSC did not disclose information on time as prescribed by law on early bond redemption and was fined VND50 million. Furthermore, Tien Phong Securities JSC violated regulations on providing consulting services on corporate bond offering documents.

The remaining three units, including Everest, KIS Vietnam and An Binh, were inspected unexpectedly related to the corporate bond issuance advisory case of Tan Hoang Minh Group, including failing to ensure the accuracy of information in the offering documents or private placement dossiers; and violating the regulations on information disclosure.

Mr. Nguyen Cong Dien said that the SSC is carrying out procedures for sanctioning administrative violations against the above six securities companies. Besides, for securities companies related to the case of Tan Hoang Minh Group, the SCC has exchanged inspection results and documents with the Investigation Police Agency (Ministry of Public Security).

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According to the representative of the Public Company Supervision Department, the SCC will continue to work with units under the Ministry of Finance, HNX and other agencies to strengthen management, supervision and inspection of consulting service providers and private corporate bond issuers to identify violations.