Maximum $130,000 fine for administrative violation in securities market

The Vietnamese Government has recently released Decree No.156/2020/ND-CP detailing penalties for administrative violations in securities market, with the maximum fine going up to VND3 billion (US$130,000) for organizations and VND1.5 billion ($65,000) for individuals.

A maximum fine of up to VND3 billion ($130,000) will be imposed to those forging legal documents to sell shares via public offering. Photo: Cong Hung.

For the act of abusing internal information to buy, sell stocks or manipulate the stock market, the fine is 10 times the illegal gained amount for organizations and five times such amount for individuals.

Regarding violations in selling stocks via private placement, the Decree stipulates the fine of VND200-300 million (US$8,600-13,000) depending on each case, including the failure to notify the State Securities Commission of Vietnam (SSC), the country’s stock market watchdog, ahead of the issuance, and receive the required approval from the authority; lack of verified and clear information related to the sale that could lead to confusion among potential buyers.

Stricter fines from VND400-500 million ($17,300-21,600) are subject to the deliberate act of providing false information related to the sale, while penalties of VND1-1.5 billion ($43,200 – 64,800) would be applied for forging legal documents for the issuance of share via private placement.

Meanwhile, unqualified share issuance via public offering will subject to fines up to VND600 million ($26,000), including having not submitted required documents to the SSC or lacking the approval from the competent authority.

Fines of VND600-700 million ($26,000-32,200) to foreign organizations selling shares via public offering but violating commitment in funds withdrawal before the agreed timeline.

A maximum fine of up to VND3 billion ($130,000) would be imposed to those forging legal documents to sell shares via public offering.