Administrative sanctions for violations of the regulations on dossier of registration for public offering of securities in Vietnam

Administrative sanctions for violations of the regulations on dossier of registration for public offering of securities in Vietnam (Internet image) 

Article 5 of Decree 108/2013/ND-CP stipulates administrative sanctions for violations of the regulations on dossier of registration for public offering of securities in Vietnam as follows:

1. A fine of between VND 80,000,000 and 120,000,000 shall be imposed on act of failing to modify dossiers of registration for public offering of securities upon detecting inaccurate information or omitted important contents required by regulations to be included in these dossiers or when arising important information involving dossiers of registration for public offering of securities;

2. A fine of between VND 300,000,000 and 400,000,000 shall be imposed on act of certifying dossiers of registration for public offering of securities containing untrue information or hiding the truth or having been seriously falsified;

3. A fine equal to between 1% and 5% of the total raised-illegally money amount shall be imposed on organizations that make or certify dossiers for registration of public offering of securities containing forgeries.

In addition, this Decree stipulates the remedial measures as follows:

- Individuals and organizations committing violations specified in Clause 1 and Clause 2 as stated above must withdraw securities they have offered and refund to investors with securities purchase payments or deposits (if any) plus interests calculated at demand deposit interest rates applied by banks at which the infringing individuals and organizations open accounts for securities purchase payments or deposits at the time when decision on application of this measure takes effect, within 15 days after receiving requests of these investors.  Deadline for investors to send request will be 60 days after the effective day of decision on application of this measure;

- Organizations committing that make or certify dossiers for registration of public offering of securities containing forgeries must withdraw securities they have offered and refund to investors with securities purchase payments or deposits (if any) plus interests calculated at demand deposit interest rates applied by banks at which the infringing organizations open the accounts for securities purchase payments or deposits, at the time when decision on application of this measure takes effect.  Deadline for withdrawing securities, returning the collected amounts to the investors will be 60 days after the effective day of decision on application of this measure;

- Forcibly canceling information, correcting information for acts of certifying dossiers of registration for public offering of securities containing untrue information or hiding the truth or having been seriously falsified or acts of making or certifying dossiers for registration of public offering of securities containing forgeries

More details can be found in Decree 108/2013/ND-CP, which comes into force from November 15, 2013.

Ty Na

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