The State Securities Commission (SSC) has issued a decision to fine Beta Securities Incorporation VND125 million (US$5,500) for violating rules on margin trading.

The company had allowed its customers to carry margin trading deals that exceeded their margin creditability, SSC said in a statement posted on its website on Wednesday.

The company was also fined VND85 million for reporting inaccurate data about its financial security at the end of January, June and September 2018.

The total fine for Beta Securities Incorporation is VND210 million and the company will have to pay the fine by December 24.

The maximum required margin ratio set by the SSC is 5:5, meaning each shareholder has to deposit a minimum of 50 per cent of the purchase value to make loans from brokerages.

However, some securities firms have allowed their customers to cut their required deposit and make higher loans.

Some of the companies also give margin lending to investors to buy UPCoM shares of the companies that have not met the SSC’s margin lending requirements. — VNS