On June 28, 2024, the State Bank of Vietnam issued Circular No. 11/2024/TT-NHNN amending and supplementing a number of articles of Circular no 16/2021/TT-NHNN dated November 10, 2021 of the President.
The Governor of the State Bank of Vietnam regulates the purchase and sale of corporate bonds by credit institutions and foreign bank branches.
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Additional regulations on principles of buying and selling corporate bonds as follows:
Issuing enterprises must send information about related persons to credit institutions according to the provisions of the Law on Credit Institutions before the credit institution purchases corporate bonds. Related persons of the issuing enterprise are organizations and individuals that have a relationship with the issuing enterprise according to the provisions of Clause 24, Article 4 of the Law on Credit Institutions.
Information about related individuals, including: full name; personal identification number; Nationality, passport number, date of issue, place of issue for foreigners; relationship with the issuing enterprise.
Information about the person involved as an organization, including: name, business code, head office address of the business, number of Business Registration Certificate or equivalent legal documents; Legal representative, relationship with the issuing enterprise.
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The total outstanding balance of corporate bond purchases (including bonds issued by the enterprise and its related persons) is included in the total outstanding credit balance for one customer, for one customer. customers and related persons according to the provisions of the Law on Credit Institutions and the regulations of the State Bank of Vietnam on limits and safety ratios in the operations of credit institutions.
This Circular takes effect from August 12, 2024.
