DECISION

ON PROMULGATING REGULATIONS ON ACCESS TO AND CONFIDENTIALITY OF COUPON RATE BOUNDARIES AND TENDER FOR GOVERNMENT BOND, GOVERNMENT BACKED BOND AND LOCAL AUTHORITY BOND

MINISTER OF FINANCE

Pursuant to the Government’s Decree No. 01/2011/ND-CP dated 05 January 2011 on the issuance of government bond, government-backed bond and local authority bond;

Pursuant to the Government’s Decree No. 215/2013/ND-CP dated 23 December 2013 on the functions, duties, authority and organizational structure of the Ministry of Finance;

Pursuant to the Circular No. 111/2015/TT-BTC dated 28 July 2015 by Ministry of Finance on guidelines for the domestic issuance of government bond;

Pursuant to the Circular No. 100/2015/TT-BTC dated 29 June 2015 by Ministry of Finance on guidelines for the domestic issuance of local authority bond;

Pursuant to the Circular No. 99/2015/TT-BTC dated 29 June 2015 by Ministry of Finance on guidelines for the issuance of government-backed bond;

Pursuant to the Circular No. 161/2014/TT-BTC dated 31 October 2014 by Ministry of Finance on regulations concerning the security of state secrets in the financial sector;

Pursuant to the Circular No. 56/2013/TT-BCA-A81 dated 13 November 2013 by Ministry of Public Security on the state secret list and level of classification in the financial sector;

At the requests of the Heads of the Department of Banking and Financial institutions,

DECIDES:

Article 1. The Decision is inclusive of the regulation on access to and confidentiality of coupon rate boundaries and tender for government bond, government-backed bond and local authority bond.

Article 2. This decision takes effect from the date of signing.

Article 3. Chief of office of the Ministry, head of the Department of Banking and Financial institutions, General Director of the State treasury, heads of issuers of government-backed bond as per the Law on public debt management and written guidelines, chairmen of People's committees of provinces and centrally affiliated cities that issue local authority bond, heads of agencies authorized by People’s committees of provinces and centrally affiliated cities to issue local authority bond, General Directors of State exchanges that organize tenders for government bond, government-backed bond and local authority bond as per designation by Ministry of Finance, and concerned entities are responsible for enforcing this Decision./.

REGULATION

ON ACCESS TO AND CONFIDENTIALITY OF COUPON RATE BOUNDARIES AND TENDER FOR GOVERNMENT BOND, GOVERNMENT-BACKED BOND AND LOCAL AUTHORITY BOND
(Enclosed to the Decision No. 494/QD-BTC dated 14 March 2016 by Minister of Finance)

Article 1. Scope of regulation

The Regulation stipulates the access to and confidentiality of information on coupon rate boundaries and tender for government bond, government-backed bond and local authority bond.

Article 2. Regulated entities

1. Issuers of government bond, government-backed bond and local authority bond (referred to as the issuers) comprise:

a) State treasury;

b) Vietnam Development Bank, Vietnam Bank for Social Policies and other organizations that issue government-backed bond as per the Law on public debt management and written guidelines;

c) People's committees of provinces and centrally affiliated cities or agencies authorized by People's committees of provinces and centrally affiliated cities to issue local authority bond.

2. Department of Banking and Financial institutions under Ministry of Finance (referred to the Department of banking and financial institutions).

3. The office of the Ministry of Finance

4. Stock exchanges organizing tenders for government bond, government-backed bond and local authority bond as per designation by Ministry of Finance (referred to as Stock exchanges).

5. Vietnam Securities Depository Center.

6. Heads of organizations and personnel involved in bond issues by entities as defined in Section 1, Section 2, Section 3, Section 4 and Section 5 of this Article.

Article 3. Mandatory confidentiality

1. The coupon rate boundaries of government bond, government-backed bond and local authority bond (referred to as the coupon rate boundaries) as announced by Ministry of Finance from time to time or for each bond issue.

2. The tender information of bidders and their clients, including the volume and interest rate bid at each tender for each issue number (referred to as tender information).

3. The successful bid information of bidders and their clients, including the successful volume and interest rate at each tender for each issue number (referred to successful bid information).

4. The scope of confidentiality of tender information and successful bid information as defined in Section 2 and Section 3 of this Article shall not apply to the information announced to bidders or publicized on Stock exchanges’ websites as per the Circular No. 111/2015/TT-BTC dated 28 July 2015 by Ministry of Finance on guidelines for the domestic issuance of government bond.

Article 4. Ratification, announcement, use and documentation of coupon rate boundaries

1. Department of banking and financial institutions shall lead the presentation of coupon rate boundaries in periods or each bond issue to heads of the Ministry for approval. The office of the Ministry shall be responsible for receiving and presenting the coupon rate boundaries at secret level to the heads of the Ministry for approval.

2. The coupon rate boundaries shall be announced by Ministry of Finance in writing. The written announcement of the coupon rate boundaries shall be marked “Secret”.

3. The written announcement of the coupon rate boundaries shall be prepared and processed at the Department of banking and financial institutions:

a) The head of the Department of banking and financial institutions shall be held responsible before the heads of the Ministry of Finance for the preparation and processing of the written announcement of the coupon rate boundaries according to Point d of this Section;

b) The head of the Department of banking and financial institutions shall assign specialized divisions and personnel to prepare and process the written announcement of the coupon rate boundaries as per Point d of this Section;

c) Specialized divisions and personnel assigned as per Point b of this Section shall be responsible before the head of the Department of banking and financial institutions for carrying out assignments as defined in Point d of this Section;

d) Responsibilities for preparing and processing the written announcement of the coupon rate boundaries shall include:

- Preparation and presentation of the written announcement of the coupon rate boundaries at secret level;

- Delivery of the written announcement of the coupon rate boundaries at secret level to the head of the agency or the person authorized by the issuer;

- Retention and security of the written announcement of the coupon rate boundaries at secret level;

- Security of the coupon rate boundaries at secret level.

4. The written announcement of the coupon rate boundaries shall be used and secured by the issuer:

a) The head of the issuer shall be responsible for the confidentiality of the written announcement of the coupon rate boundaries:

b) The head of the issuer shall assign specialized divisions and personnel to use, manage and secure the written announcement of the coupon rate boundaries at secret level as per regulations.

c) The specialized divisions and personnel given duties as stated in Point b of this Section shall be responsible before the head of the issuer for the confidentiality of the coupon rate boundaries.

Article 5. Use and confidentiality of information on tender and successful bid

1. Issuers as defined in Section 1, Article 2 of this Regulation

a) The head of the issuer shall be responsible for assigning specialized divisions and personnel to access the electronic bidding system of the Stock Exchange to facilitate bond issues;

b) The head of the issuer shall be responsible for the confidentiality of information on tender and successful bid. Specialized divisions and personnel given duties as per Point a in this Section shall be responsible before the head of the issuer for the confidentiality of information on tender and successful bid and for non-disclosure of any information to other entities in any manners.

2. Department of Banking and Financial institutions:

a) The head of the Department of banking and financial institutions shall be responsible for assigning specialized divisions and personnel to access the bidding system to monitor market circumstances for administrating the coupon rate boundaries and developing the bond market.

b) The head of the Department of banking and financial institutions shall be responsible before the heads of the Ministry of Finance for the confidentiality of information on tender and successful bid. Specialized divisions and personnel given duties as per Point a in this Section shall be responsible before the head of the Department of banking and financial institutions for the confidentiality of information on tender and successful bid and for non-disclosure of any information to other entities in any manners.

3. Stock Exchanges:

a) Stock Exchanges shall provide electronic bond tender services to participants in a bond tender. Issuers shall be given access to the electronic tender system to obtain information on tender and successful bid;

b) General Directors of Stock Exchanges shall be responsible for assigning specialized divisions and personnel to receive and process information on tender and successful bid as per Point a, Section 1 of this Article.

b) General Directors of Stock Exchanges shall be responsible before the heads of the Ministry of Finance for the confidentiality of information on tender and successful bid. Specialized divisions and personnel given duties as per Point b of this Section shall be responsible before the General Director of the relevant Stock Exchange for the confidentiality of information on tender and successful bid and for non-disclosure of any information to other entities in any manners.

4. Vietnam Securities Depository Center:

a) The general director of Vietnam Securities Depository Center shall be responsible for assigning specialized divisions and personnel to receive and process successful bid information to facilitate bond depository services;

b) The general director of Vietnam Securities Depository Center shall be responsible before the heads of the Ministry of Finance for the confidentiality of successful bid information. Specialized divisions and personnel given duties as per Point a of this Section shall be responsible before the General Director of Vietnam Securities Depository Center for the confidentiality of successful bid information and for non-disclosure of any information to other entities in any manners.

Article 6. Enforcement

1. Chief of office of the Ministry, head of the Department of Banking and Financial institutions, general director of the State treasury, heads of issuers of government-backed bond as per the Law on public debt management and written guidelines, chairmen of People's committees of provinces and centrally affiliated cities that issue local authority bond, heads of agencies authorized by People’s committees of provinces and centrally affiliated cities to issue local authority bond, general directors of State exchanges and concerned entities are responsible for enforcing this Regulation.

2. Ministry of Finance shall review and revise this Regulation according requisitions by the head of the Department of Banking and Financial institutions./.