What are regulations on manipulation of securities market in Vietnam?

What are regulations on manipulation of securities market in Vietnam?

Pursuant to Clause 2 Article 3 of the Decree 156/2020/NĐ-CP stipulating manipulation of securities market in Vietnam as follows:

2. “manipulation of securities market” means the commission of the prohibited act related to securities and securities market prescribed in Clause 3 Article 12 of the Law on Securities, including one, some or all of the following acts:

a) Using one or several accounts of oneself or another person, or colluding with another person to continuously buy and sell securities in order to create artificial demand or supply;

b) Placing orders to buy and sell the same type of securities within the same trading day or colluding with another person to buy and sell securities without actual transfer of ownership or with the ownership transferred within the group in order to create artificial demand and supply;

c) Continuously buying or selling securities with a controlling quantity at the opening or closing time of the market in order to create a new closing or opening price for such type of securities on the market;

d) Trading securities by colluding with or persuading another person to continuously place securities purchase and sale orders to remarkably affect the demand, supply and prices of securities, or manipulate securities prices;

dd) Offering opinions whether directly or via the mass media about a type of securities or securities issuer in order to affect the price of that type of securities after conducting a transaction and holding the position of that type of securities;

e) Using other methods or committing other trading acts, with or without providing false information, to create artificial demand and supply or manipulate securities prices.

As regulations above, manipulation of securities market are prohibited acts in securities activities and martket in Vietnam.

What criminal liabilities shall be imposed for anyone manipulating securities market in Vietnam?

Pursuant to Article 211 of the Criminal Code in 2015 stipulating manipulation of securities market in Vietnam as follows:

1. A person who deliberately commits any of the following acts and earns a profit of from VND 500,000,000 to under VND 1,500,000,000 or causes a loss to investors of from VND 1,000,000,000 to under VND 3,000,000,000 shall be liable to a fine of from VND 500,000,000 to VND 2,000,000,000 or face a penalty of 06 - 36 months' imprisonment:

a) Using one or multiple accounts of the offender or another person or colluding with another person, to continuously buying and selling securities in order to create false demand and supply;

b) Colluding with another person to place orders for purchase and sale of the same type of securities within the day or selling and buying securities without actual transfer of ownership or ownership is only transferred within the group in order to create false demand and supply;

c) Continuously buying or selling securities with a controlling quantity at the opening or closing time of the market in order to create a new closing price or opening price for such type of securities on the market;

d) Trading securities by colluding with another person or persuade another person to continuously place securities purchase and sale orders to remarkably affect the demand, supply and securities prices or manipulate securities prices;

dd) Offer opinions whether directly or via the media about a type of securities or securities issuer in order to affect the price of that type of securities after a transaction has been made in order to have an advantage from it.

e) Using other methods or commit other acts to create false demand and supply in order to manipulate securities prices.

2. This offence committed in any of the following circumstances carries a fine of from VND 2,000,000,000 to VND 4,000,000,000 or a penalty of 02 - 07 years' imprisonment:

a) The offence is committed by an organized group;

b) The illegal profit reaped is ≥ VND 1,500,000,000;

c) The loss incurred by investors is ≥ VND 3,000,000,000;

d) Dangerous recidivism.

3. The offender might also be liable to a fine of from VND 50,000,000 to VND 250,000,000, be prohibited from holding certain positions or doing certain works for 01 - 05 years.

4. Punishments incurred by a corporate legal entity that commits any of the offences specified in this Article:

a) A corporate legal entity that commits this offence in any of the circumstances specified in Clause 1 of this Article shall be liable to a fine of from VND 2,000,000,000 to VND 5,000,000,000;

b) A corporate legal entity that commits this offence in the circumstances specified in Clause 2 of this Article shall be liable to fine of from VND 5,000,000,000 to VND 10,000,000,000;

c) A corporate legal entity that commits this offence in any of the circumstances specified in Article 79 hereof shall be permanently shut down;

d) The violating corporate legal entity might also be liable to a fine of from VND 500,000,000 to VND 2,000,000,000, be banned from operating in certain fields or raising capital for 01 - 03 years.

As regulations above, a fine ranging from VND 500,000,000 to VND 4,000,000,000 or a penalty up to 06 months - 07 years shall be imposed for anyone manipulating securities market in Vietnam earning a profit of from VND 500,000,000.

What are administrative fines imposed for anyone manipulating securities market in Vietnam?

Pursuant to Article 36 of the Decree 156/2020/NĐ-CP (amended by Clause 30 and 46, Article 1 of the Decree 128/2021/NĐ-CP) stipulating violations on manipulating securities market in Vietnam as follows:

1. A fine that is 10 times the illegal gain but is not lower than the maximum fine specified in Point b Clause 3 Article 5 of this Decree shall be imposed for manipulating securities market. If the illegal gain cannot be determined or the fine calculated according to the illegal gain is smaller than the maximum fine specified in Point b Clause 3 Article 5 of this Decree, the maximum fine specified in Point b Clause 3 Article 5 of this Decree shall be imposed.

2. Additional penalties:

a) Securities activities and securities services of securities company, securities investment fund management company, or branch of foreign securities company or foreign fund management company in Vietnam shall be suspended for fixed-period of 01 - 03 months in case of commission of the violation in Clause 1 of this Article;

b) Securities professional certificate shall be suspended for fixed-period of 18 - 24 months if the certified securities professional commits the violation in Clause 1 of this Article.

3. Remedial measure:

The violating entity is compelled to return the revenue illegally obtained from the commission of one of the violation in Clause 1 of this Article.

Above are administrative fines imposed for anyone manipulating securities market in Vietnam.

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