Article 3 of Decree No.08 stipulates that three specific articles in Decree No.65, one regulating professional securities investors, one regulating time intervals between bond issues, and one regulating bond issuers credit ratings, will no longer be in effect as of December 31, 2023.
Enterprises must adhere to the requirement that they obtain the bondholder''s consent, disclose unusual information, and be accountable for the legal standing of the assets used as payment.
The volume of mature bonds of businesses will peak in the period of 2023 - 2024 and bond issuers are taking different actions to proactively remove difficulties.
Financial-banking companies should be empowered to recognise professional investors instead of bond issuers when they come to purchase corporate bonds, regulatory experts have urged.
Property firms were the top bond issuers in the first four months of this year but the race of issuing bonds was creating risks as many had much higher outstanding bonds than their equities, according to the Ministry of Finance.