return icon Vietnamnet.vn

Current fines for market violations not enough

Although market regulators detect many violations on the stock market, the penalties are often not proportionate to the profit, and so are of little deterrent to would-be rule-breakers.

 

 

Investors on FPT Securities Joint Stock Company's trading floor. Since the beginning of 2021, the State Securities Commission has announced five decisions on administrative sanctions for violations of individuals and businesses. — Photo tinnhanhchungkhoan.vn

 

According to the State Securities Commission of Viet Nam (SSC), there are hundreds of cases of violations every year relating to information disclosure, price manipulation and stock manipulation.

SSC last year issued more than 300 decisions to sanction administrative violations in the field of securities and the stock market, an increase of more than 80 cases compared to 2020. The amount of money collected from the fines rose 5.6 per cent to reach approximately VND21 billion; in 2020 they totalled VND19.8 billion (US$871,300).

The most common violations are transactions not being reported within the specified timeframe, non-disclosure of information about expected transactions or non-disclosure of information that must be disclosed in accordance with the law.

As per the official porter of the State Securities Commission of Viet Nam, from the beginning of 2021 until now, this agency has announced five administrative sanctions for violations of individuals and businesses.

On January 10, 2021, the SSC issued Decision No 17/QD-XPVPHC on sanctioning administrative violations against Nguyen Thi Thanh Huong, in Ha Noi's Hai Ba Trung District.

Huong was fined VND80 million for non-disclosure of information about an expected transaction. Huong bought 100,000 shares of Electronics Communications Technology Investment Development Corporation (ELC), equivalent to VND1 billion at par value of ELC shares on July 2, 2021. After that, Huong sold 100,000 ELC shares in August 2021 but did not disclose information about the transaction.

Previously on January 4, the SSC also issued Decision No 02/QD-XPVPHC on sanctioning administrative violations against CMC Joint Stock Company, based in Thuy Van Industrial Park, Thuy Van Commune, Viet Tri City in the northern province of Phu Tho, with a fine of VND85 million.

The company committed administrative violations in the field of securities and the stock market by not disclosing information that must be disclosed in accordance with the law.

At the end of August 2021, the SSC issued a notice on the sanctions for the act of manipulating the prices of FTM shares of Duc Quan Investment and Development Joint Stock Company. Specifically, Le Manh Thuong and Pham Thi Phuong used 50 trading accounts to create artificial supply and demand, manipulating FTM shares of Duc Quan Investment and Development Joint Stock Company. Each of the above-mentioned individuals was fined VND600 million.

At the beginning of July 2019, the price of FTM continuously dropped from nearly VND24,000 per share to almost VND3,000 per share. At the time, 11 securities companies and one bank lost hundreds of billions of dong because of margin lending related to FTM shares.

According to SSC, based on the verification results of the police agency and the inspection results, the consequences caused by the two individuals mentioned above have not reached the level of criminal prosecution.

At the end of July 2021, the SSC issued a decision to sanction an administrative violation against Tran Ngoc Be, with a fine of over VND940 million.

Be bought more than 1.48 million VPBank (VPB) shares and sold 59,000 VPB shares in January 2021. Be continued to buy more than 1.88 million VPB shares in February 2021 and 59,000 VPB shares on March 3, 2021 but did not disclose information about the expected transaction. In addition to the administrative fine, Be was also subject to an additional penalty of suspending securities trading for four months.

According to Nguyen The Minh, Analysis Director of Retail Banking, Yuanta Securities Viet Nam, the non-disclosure of transaction information had caused many risks for businesses and investors. The market would become less transparent and therefore more difficult to be upgraded in status. On the investor side, they will lose confidence in the business because transparency is the minimum factor for investors to decide whether to buy a stock or not.

“Although the authorities have detected and handled many violations on information disclosure on the market, most of them were just administrative sanctions. Since most of the fines are small amounts, many large shareholders are willing to trade off fines for profits,” Minh said.

“It is necessary to increase the fine level for the act of not disclosing the expected transaction information, not limited to just VND1.5 billion. This is a very small amount compared to the trading sessions that earned thousands of billions of dong,” he said.

SSC has advised investors to be careful, avoid being led astray by fabricated rumours flows on social networks. Along with the flourish of securities recently, many groups have been created on Zalo, Facebook, and Telegram to exchange investment information.

In a statement issued on December 28, 2021, the SSC said that it had discovered among those groups that spread falsified rumours, fake documents and untrue information to entice investors to buy and sell stocks.

Source: VNS

MORE NEWS

Vietnam looks forwards to stronger investment from US, Europe

Vietnam is hoping to attract more investment from the US, Europe and major global enterprises under a recently approved strategy on foreign investment cooperation.

People in HCMC wait in long queues at passport office on July 1

On July 1 afternoon, thousands of people lined up waiting for passports at the Immigration Department on the first day of issuing ordinary passports in the new form.

Three SARS-CoV-2 Omicron variant BA.5 cases detected in Hanoi

Although the number of daily new cases of Covid-19 is decreasing sharply, Hanoi has recorded three infections caused by the BA.5 sub-strain of the Omicron coronavirus variant.

Binh Duong ranks first nationwide by GDP

The southern province of Binh Duong took the lead among Vietnam’s 63 provinces and cities in terms of gross domestic product (GDP) per capita in 2021, according to the latest data released by the General Statistics Office.

Tan Hoang Minh allegedly appropriates VND8 trillion of investors

Tan Hoang Minh Group, a major property developer based in Hanoi, is facing charges of misappropriating over VND8 trillion from investors, said a Ministry of Public Security representative.

Businesses get set for circular economy

Vietnam’s rapid economic growth has caused environmental challenges which have forced the nation to focus on fostering the development of a circular economy with less pollution and reused and recycled products.

Over 60,000 fishing vessels urged to seek safe shelter from storm Chaba

Approximately 60,000 fishing vessels operating at sea have been urgently notified to avoid dangerous areas and seek safe shelter from incoming Storm Chaba, according to the National Steering Committee for Natural Disaster Prevention and Control.

Siem Reap - Da Nang air route resumed

Flight K6 840 departed from Siem Reap of Cambodia at 3:35 pm on July 1 and landed safely at Da Nang International Airport at 5:35pm on the same day.

Embassy: two Vietnamese arrested in Spain for alleged sexual assault

Police on the Spanish island of Mallorca on June 25 said they had arrested two Vietnamese citizens accused of raping a 17-year-old girl and privacy violation, according to the Vietnamese Embassy in Spain.

The key role of top leaders in fighting corruption in Vietnam

Head of the Party Central Committee's Commission for Internal Affairs Phan Dinh Trac has emphasized the important role of top leaders, especially Party Secretary General Nguyen Phu Trong, the people and the media in fighting corruption.

Huge costs for filling Ha Long largest open-cast coal mine

It would cost about VND 1.20 trillion (USD 52.18 million) to fill the Nui Beo open-cast coal mine pit in Ha Long City after closure.

Cutting taxes on petrol products is more urgent than ever

“VND50,000 please. No, just VND30,000."  “VND100,000, please. No, only VND70,000." These were conversations I heard yesterday at a filling station.

28 provinces, 21 central hospitals report lack of drugs, medical equipment

Twenty-eight healthcare departments and 12 out of 21 central hospitals have reported they lack drugs.

HCMC proposes developing huge port in Can Gio

The HCMC government has proposed developing an international container port in the outlying district of Can Gio with an estimated investment of some US$6 billion to aid the local marine economy.

500 tonnes of Vietnamese-labelled rice exported to EU

Loc Troi Group JSC exported nearly 500 tonnes of rice labelled with its own brand name “Com Vietnam Rice” to the EU markets in June.
back_to_top