A fine of 10 times of the illegal revenue for manipulation of securities market in Vietnam

According to Article 36 of the Decree No. 156/2020/NĐ-CP of the Vietnam’s Government, a fine that is 10 times the illegal revenue but does not exceed VND 3.000.000.000 for organization and 1.500.000.000 for individual shall be imposed for the act of manipulation of securities market if not liable to criminal prosecution. In case there is no illegal revenue or the fine calculated according to the illegal revenue is smaller than VND 3.000.000.000 for organization and 1.500.000.000 for individual, the fine is VND 3.000.000.000 for organization and 1.500.000.000 for individual.

Besides, 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 a period of 01 - 03 months in case of commission of the above-mentioned violation. Concurrently, securities professional certificate shall be suspended for a period of 18 - 24 months if the certified securities professional.

Thus, it can be seen that the law stipulates heavy penalties for acts of manipulating the securities market for organizations and individuals. A fine that is 10 times the illegal revenue (not exceeding VND 3 billion) shall be imposed for the act of manipulation of securities market if not liable to criminal prosecution. Concurrently, in case there is no illegal revenue or the fine calculated according to the illegal revenue is smaller than VND 3 billion, the fine is still VND 3 billion. On the other hand, the violating entity is compelled to return the revenue illegally obtained from the commission of one of the violation.

More details at the Decree No. 156/2020/NĐ-CP of the Vietnam’s Government, effective from January 01, 2021.

Ty Na

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