Are commercial banks subject to regulations on penalties for administrative violations against regulations on securities in Vietnam?
- What are the administrative violations against regulations on securities in Vietnam?
- Are commercial banks subject to regulations on penalties for administrative violations against regulations on securities in Vietnam?
- What is the administrative penalty imposed upon a bank that has been issued with certificate of securities depository registration but fails to apply for registration of depository member?
What are the administrative violations against regulations on securities in Vietnam?
Pursuant to Clause 2, Article 1 of Decree No. 156/2020/ND-CP, the administrative violations against regulations on securities in Vietnam include:
Scope
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2. Administrative violations against regulations on securities and securities market prescribed herein include:
a) Violations against regulations on private placement of securities;
b) Violations against regulations on public offering in Vietnam;
c) Violations against regulations on issuance of bonds in the international market, offering of securities overseas, and issuance of securities used as the basis for offering of depositary receipts overseas or provision of assistance in issuing depositary receipts overseas on the basis of shares issued in Vietnam;
d) Violations against regulations on issuance of additional shares;
d) Violations against regulations on public companies;
e) Violations against regulations on tender offers;
g) Violations against regulations on listing and registration of securities;
h) Violations against regulations on organization of securities market;
i) Violations against regulations on securities trading and practice; violations against regulations on securities transactions;
k) Violations against regulations on registration, depositing, clearing and payment for securities, supervisory banks and custodian banks;
l) Violations against regulations on information disclosure and reporting; violations against regulations on audit of public companies, listed organizations, organizations performing public offering, securities companies, securities investment companies, securities investment funds and fund management companies;
m) Violations against regulations on anti-money laundering and counter-terrorism financing in the fields of securities and securities market;
n) Violations against regulations on inspection by competent authorities;
o) Other violations against regulations on securities and securities market prescribed herein.
Thus, the administrative violations against regulations on securities include violations against regulations on private placement of securities; violations against regulations on public offering in Vietnam; violations against regulations on issuance of additional shares; violations against regulations on public companies;… and other violations according to the above-mentioned laws.
Are commercial banks subject to regulations on penalties for administrative violations against regulations on securities in Vietnam?
Are commercial banks subject to regulations on penalties for administrative violations against regulations on securities in Vietnam?
Pursuant to Article 2 of Decree No. 156/2020/ND-CP stipulating the regulated entities as follows:
Regulated entities
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a) Public companies;
b) State-owned enterprises, wholly state-owned single-member limited liability companies and public service agencies that are equitized in the form of public offering of securities;
c) Issuers;
d) Listed or registered organizations; organizations providing counseling on listing and registration of securities;
dd) Accredited audit organizations;
e) Organizations providing counseling on offering and issuance of securities; underwriters; bidding organizations and issuing agents;
g) Securities companies and securities investment fund management companies, and their branches and representative offices in Vietnam, securities investment companies;
h) Vietnam Exchange (VNX) and its subsidiaries, Vietnam Securities Depository and Clearing Corporation (VSDCC);
i) Shareholders and investors that are organizations;
k) Commercial banks and foreign bank branches in Vietnam that perform depositing, clearing and payment for securities transactions; supervisory banks;
l) Securities-related socio-professional organizations;
m) Other organizations operating in securities market or involved in securities and securities market.
Thus, commercial banks and foreign bank branches in Vietnam that perform depositing, clearing and payment for securities transactions; supervisory banks are subject to administrative penalties when committing violations against regulations on securities.
What is the administrative penalty imposed upon a bank that has been issued with certificate of securities depository registration but fails to apply for registration of depository member?
Pursuant to Article 38 of Decree No. 156/2020/ND-CP (amended by Clause 31, Article 1 of Decree No. 128/2021/ND-CP) on violations against regulations on registration of provision of securities depositing, clearing and payment services as follows:
Violations against regulations on registration of provision of securities depositing, clearing and payment services
1. A fine ranging from VND 30.000.000 to VND 50.000.000 shall be imposed upon a securities company, commercial bank or FBB that has been issued with certificate of securities depository registration or certificate of eligibility to provide securities clearing and payment services for failing to apply for registration of depository member/ clearing member and provide securities depositing, clearing and payment services within the prescribed time limit.
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4. Additional penalty:
Provision of securities depository, clearing and settlement services shall be suspended for a fixed period of 01 – 03 months in case of commission of any of the violations in Clause 1 and Clause 3 of this Article.
Thus, in case a commercial bank that has been issued with certificate of securities depository registration but fails to apply for registration of depository member shall be imposed a fine from VND 30,000,000 to VND 50,000,000.
In addition, provision of securities depository, clearing and settlement services shall be suspended for a fixed period of 01 – 03 months.
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