BOND - FAQ - Pinetree Securities




1. Does Pinetree offer cash advance service for listed bonds selling?

Yes, for listed bonds, according to the regulations of the Stock Exchange, if customers sell bonds on T-day, the money from customers’ bond sale will only be available for withdrawal on T+1 day.

In case there is a need for liquidity, customers can use the cash advance service for sales of listed bonds. Time for fee charging is 01 day (holidays can be added if any).

2. Do I need to sign a hard copy contract if I buy bonds at Pinetree?

For listed bonds, customers do not need to sign a hard copy contract. Customers can place orders to buy bonds through the Company’s platforms (Alphatrading, WTS).

3. Can I sell a hold-to-maturity bond prior to maturity?

Customers can sell bonds prior to maturity.

4. Can I resell part of the bond?

Customers can resell part of the bond.

5. Is it sure that Pinetree will buy back the investor’s bonds?

Pinetree only offers liquidity support for the bonds distributed by Pinetree and bonds bought by investors from Pinetree. The liquidity support service offered by Pinetree will be at an appropriate call price under market conditions at times during the maturity of the Bonds.

6. Can I buy more bonds, or several products with different maturities?

Yes. Customers only need to send more buy orders to Pinetree to buy more bonds or buy a variety of bonds with different maturities (depends on bond issuance term) after completing the bond purchase procedure.

7. What are the types of taxes I have to pay when investing in bonds?

According to Vietnam’s current regulations, individual investors are subject to the following taxes when buying corporate bonds:

– Tax when receiving bond interest: 5% charged on bond interest

– Tax when selling bonds: 0.1% charged on bonds selling price

For bonds that are held to maturity, the bond principal is not subject to PIT.

The interest rates announced by Pinetree are the rates before taxes and transaction fees.

8. Is investing in bonds risky?

Investing in bonds is an investment with risk and return is not guaranteed, just like investing in stocks and fund certificates. This is not a savings deposit product at a bank. Investors need to carefully refer to product documents and transaction documents to understand the risks before deciding to invest.

9. Do listed bonds require the Investor to be a Professional Securities Investor?

No. Same as listed shares, for bonds currently listed on the Stock Exchange, all investors are allowed to participate in trading, and it is not required to be a Professional Securities Investor.

10. How to identify a Professional Securities Investor (PSI) for Individual Investors at Pinetree?

An individual investor who wants to be authenticated as a PSI needs to satisfy one of the following factors:

– Having a Securities Practicing Certificate.

– Individuals holding a list of listed securities and registering for trading on a securities account opened at Pinetree with a minimum value of VND 02 billion, determined by the daily average market value of the securities portfolio for a period of at least 180 consecutive days prior to the date of confimation as a PSI, excluding the value of margin lending and the value of securities for resale transactions.

– An individual with a taxable income of at least VND 01 billion in the latest year by the time that individual is determined as a Professional Securities Investor according to the tax declaration dossier submitted to the tax authority or certificate of tax deductions paid by organizations or individuals.

11. I am a Professional Securities Investor certified by another securities company, can I buy bonds at Pinetree?

If you have a certificate of Professional Securities Investor certified by Pinetree or another securities company, you can buy bonds at Pinetree.

12. What is the process of identifying Professional Securities Investor at Pinetree?

– Step 1: Customer submits a hard copy application to Pinetree to request the determination of the status of a Professional Securities Investor

– Step 2: Pinetree checks the validity of the documents provided by customers. In the event of incorrect, missing and/or invalid documents, Pinetree will instruct customers to re-prepare documents and provide it to Pinetree.

– Step 3: Pinetree confirms the status of PSI if the application document is completed and valid.

– Step 4: Pinetree sends confirmation to customers.

Note: Pinetree’s certification of PSI is valid for one year from the date of Pinetree’s confirmation, unless otherwise provided for by Pinetree or as required by law.

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