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Official Gazette

Sunday, June 11, 2023

Securities violators to face heftier fines

Updated: 14:00’ - 11/08/2020
The Ministry of Finance (MOF) has proposed a maximum fine of VND 3 billion (USD 130,000) and VND 1.5 billion (USD 65,000) for organizations and individuals, respectively, committing securities-related violations. 

According to the MOF’s draft on sanctioning of administrative violations in the securities market, the principal sanctions for violators would be warnings, fines or deprivation of the right to use securities practice certificates and other certificates related to securities and securities market activities for a period of between one month and two years.

Under the draft, the fine level applicable to individual violators would be half of the fine level imposed on institutional violators committing the same violation. For example, an organization using internal information in contravention of law or manipulating securities prices would be subject to a fine of up to 10 times of its illegal income. Meanwhile, the maximum fine for an individual violator would be five times of his illegal income. If having no illegal income, institutional violators would face the maximum fine of VND 3 billion and individual violators would be subject to the fine of VND 1.5 billion.

Depending on the nature and severity of violations, organizations and individuals might be subject to one or more than one remedial measure. They might be forced to remit to the state budget the illegal benefits obtained from violations, refund to investors the money amounts paid or deposited for purchase of securities and the amount of interests on payments or deposits. They would also have to recall the volume of additionally issued securities, disclose information, correct false information, and provide information and data relating to audit activities.- (VLLF)


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