Investors could face criminal charges if they try to manipulate stock prices to earn illegal profits and cause damage to the market and listed companies.
According to the State Securities Commission (SSC), there are fines and penalties for violations that individual investors commit on the securities market.
The highest penalty for violations on the securities market is VND1 billion (US$44,400) for individual investors, according to Decree 108/2913/ND-CP issued in September 2013.
The SSC has recently issued several penalties for investors who violate market regulations on stock trading.
On September 1, investor Phan Sy Hai was fined VND550 million for using 28 accounts, including three under his name, to create false information to illegally trade shares of Vimedimex Pharmaceutical JSC (HOSE: VMD).
On August 10, the SSC decided to issue a fine of VND600 million – the highest penalty on Viet Nam’s stock market – to Tran Thi Minh Phuong for using 42 accounts, including three under her name, to illegally trade shares of HAGL Agrico (HOSE: HNG).
However, those fines have proved to be ineffective in reducing the number of violations by individual investors in the securities market, such as internal trading and manipulation of stock prices.
Therefore, the Ministry of Finance on August 22 released Document 20/VBHN-BTC to regulate penalties and fines for those who commit violations on the securities trading market.
The document was published by the finance ministry on August 22 this year to combine Circular 217/2013/TT-BTC and Circular 36/2017/TT-BTC, both of which were regulatory policies from the finance ministry.
Circular 217 was issued on December 31, 2013, to regulate penalties and fines for violations committed in the securities market, and Circular 36 was dated April 27, 2017, as an amendment to Circular 217.
Under the Document 20, if an investor is suspected of having conducted illegal transactions that could cause heavy damages to companies, share prices or the stock market, the market regulators must report the case to the police for criminal prosecution. — VNS