Supplementing regulations on administrative sanctions in the securities sector

The Government has just issued Decree 128/2021/ND-CP amending and supplementing a number of articles of Decree 156/2020/ND-CP stipulating penalties for administrative violations in the field of securities and securities market. .

Supplementing regulations on administrative sanctions in the securities sector

Supplementing regulations on administrative sanctions in the securities sector (Illustration image)

Accordingly, a number of regulations on administrative sanctions in the securities sector are added as follows:

1. Supplementing regulations on sanctioning violations on issuing more shares

Decree 128/2021/ND-CP adds Clause 1a after Clause 1, Article 12 of Decree 156/2020/ND-CP on penalties for violations of regulations on issuing more shares as follows:

A fine of between VND 100-150 million shall be imposed for failure to transfer the proceeds from the issuance to the blocked account at a bank or foreign bank branch; use the proceeds from the offering before the State Securities Commission gives a written notice of the receipt of the report on the results of the offering.

2. Penalty for not announcing the maximum foreign ownership ratio in a public company

In Clause 14, Article 1 of Decree 128/2021/ND-CP , Article 15a is added after Article 15 of Decree 156/2020/ND-CP , providing for penalties for violations of regulations on notification of maximum foreign ownership ratio. at a public company as follows:

- A fine of between VND 30-50 million shall be imposed on a public company that fails to notify the change of the maximum foreign ownership ratio within the time limit specified in Article 141 of Decree 155/2020/ND-CP . Specifically:

1. The public company is responsible for determining the business lines and investment lines and carrying out the procedures for notifying the maximum foreign ownership ratio within 07 working days from the date the State Securities Commission determines the maximum foreign ownership ratio. complete the registration of a public company.

2. In case a public company has not yet notified the maximum foreign ownership ratio as prescribed, the company must carry out the procedures for notifying the maximum foreign ownership ratio before submitting the application for listing registration. listing, transferring listing, registering for trading, offering for sale, issuing securities, shareholders of public companies offering shares to the public.

3. The public company must carry out the procedures for notifying the change of the foreign ownership ratio within 30 days from the date of occurrence of one of the following events:

- Change in investment and business lines leading to change in the maximum foreign ownership ratio in the company;

- There is a change in the legal regulations on foreign ownership in the fields of investment and business that the company is operating;

- The company's charter stipulates to change the maximum foreign ownership ratio.

- A fine of between VND 50-70 million shall be imposed on a public company that fails to notify the maximum foreign ownership ratio or change the maximum foreign ownership ratio.

3. Additional fines for selling treasury stocks

Decree 128/2021 adds to Article 16 of Decree 156/2020 on penalties for violations of the sale of treasury shares as follows:

- A fine of between VND 50 - 70 million for acts of selling treasury shares before the prescribed time; fails to complete the sale of treasury shares within the stipulated time limit.

- A fine of between VND 70-100 million for selling treasury shares without reporting to the State Securities Commission or inconsistent with the plan reported to the State Securities Commission or disclosed information. to the public.

4. Additional fines for violations of reporting regulations

Decree 128/2021 adds Clause 3a after Clause 3, Article 43 of Decree 156/2020 as follows:

A fine of between VND 100-200 million shall be imposed for reporting false or untruthful contents.

At the same time, applying the remedial measure is forcing the reporting of accurate information for the above violation.

Decree 128/2021/ND-CP takes effect from January 1, 2022.

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