As of last December 06, the State Securities Commission of Vietnam (SSC) issued nearly 300 sanctioning decisions in the field of securities and securities market with a total amount of VND18 billion (US$793,825) sanctioned, 1.5 times higher than the same period of 2016.
It can be seen that violations in recent years have only been administratively handled.
Pursuant to the amended 2015 Penal Code, these four securities-related offences will be prosecuted from January 01, 2018.
TheLEADER would like to summarize the provisions of four securities-related offences as follows:
1. False information or concealment of information in securities activities
This offence is specified in Article 209.
The offence is determined as the deliberate publishing of false information or concealment of information in offering, listing, trading securities, market organization, registration, depositing, clearing, or paying for securities.
The offender might be liable to a fine up to VND2 billion (US$88,202), community sentence or imprisonment up to five years depending on the loss incurred by the investors, the illegal profit reaped or recidivism. The offender might also be prohibited from holding certain positions or doing certain works for 01 - 05 years.
A corporate legal entity that commits this offence in the case specified in this Article shall be liable to a fine of maximum VND5 billion (US$220,507) and might also be prohibited from operating in certain fields or raising capital for 01 - 03 years.
2. Use of internal information for trading securities
This offence is specified in Article 210.
The offender is determined as any person who has information about a public company or public fund which has not been published and could remarkably affect securities price of that public company or public fund and uses such information to deal in securities or discloses it or provides it for another person for trading securities and earns an illegal profit.
The offender, subject to the illegal profit reaped, the loss incurred by investors, offence committed by an organized group and recidivism, shall be liable to a fine of maximum VND5 billion (US$220,507) or a penalty of 07 years’ imprisonment. The offender might also be prohibited from holding certain positions or doing certain works for 01 - 05 years.
A corporate legal entity that commits any of the offences specified in this Article shall be liable to a fine of up to VND10 billion (US$441,014) and might also be prohibited from operating in certain fields or raising capital for 01 - 03 years.
3. Manipulation of securities market
This offence is specified in Article 211.
The offence is determined as:
- Using one or multiple accounts of the offender or another person, or colluding with another person, continuously buying and selling securities in order to create false demand and supply;
- Colluding with another person to place orders for purchase and sale of the same type of securities within the day, or selling and buying securities without actual transfer of ownership or ownership is only transferred within the group in order to create false demand and supply;
- Continuously buying or selling securities with a controlling quantity at the opening or closing time of the market in order to create a new closing price or opening price for such type of securities on the market;
- Trading securities by colluding with another person or persuade another person to continuously place securities purchase and sale orders to remarkably affect the demand, supply, and securities prices, or manipulate securities prices;
- Offering opinions whether directly or via the media about a type of securities or securities issuer in order to affect the price of that type of securities after a transaction has been made in order to have an advantage from it.
- Using other methods or commit other acts to create false demand and supply in order to manipulate securities prices.
The offender, subject to the illegal profit reaped, the loss incurred by investors, offence committed by an organized group and recidivism, shall be liable to a fine of maximum VND4 billion (US$176,405) or a penalty of 07 years’ imprisonment. The offender might also be prohibited from holding certain positions or doing certain works for 01 - 05 years.
A corporate legal entity that commits any of the offences specified in this Article shall be liable to fine of up to VND10 billion (US$441,014) and might also be prohibited from operating in certain fields or raising capital for 01 - 03 years.
4. Forging documents in offering or listing profile
This offence is specified in Article 212.
A person who forges documents of the offering or listing profile and earns a profit shall be liable to a fine up to VND5 billion (US$220,507) or a penalty of seven years’ imprisonment subject to the illegal profit reaped, the loss incurred by investors, offence committed by an organized group and dangerous recidivism.
The offender might be prohibited from holding certain positions or doing certain works for 01 - 05 years.
