Conducting issuance of additional shares without submitting reports to the State Securities Commission of Vietnam shall be fined up to VND 300 million

According to Article 12 of the Decree No. 156/2020/NĐ-CP of the Vietnam’s Government, Violations against regulations on issuance of additional shares and corresponding penalties are specified as follows:

(1) A fine ranging from VND 100.000.000 to VND 150.000.000 shall be imposed for committing one of the following violations:

- Failing to revise the application for or reports on issuance of additional shares when finding inaccurate or inadequate information or any new information related to the submitted application or reports;

- Conducting the issuance of additional shares against the plan submitted to or registered with the State Securities Commission of Vietnam (SSC).

(2) A fine ranging from VND 200.000.000 to VND 300.000.000 shall be imposed for committing one of the following violations:

- Conducting issuance of additional shares without submitting reports to SSC or before obtaining SSC’s certificate of receipt of adequate reports on issuance of additional shares;

- Conducting issuance of additional shares without applying for registration of issuance of additional shares with SSC; Conducting issuance of additional shares before or without obtaining SSC’s approval;

- Conducting issuance of additional shares without fulfilling requirements set forth in law.

(3) A fine ranging from VND 400.000.000 to VND 500.000.000 shall be imposed for preparing or making certification on the application for or report on issuance of additional shares which contains false information or conceals true information.

(4) A fine ranging from VND 1.000.000.000 to VND 1.500.000.000 shall be imposed for forging documents or making certification on forged documents proving the satisfaction of requirements for issuance of additional shares included in the application for registration of issuance of additional shares.

Thus, conducting issuance of additional shares without submitting reports to SSC shall be fined up to VND 300 million.

Note: The fine imposed upon an individual shall be a half of the fine imposed upon an organization for committing the same violation.

View more violations on securities at the Decree No. 156/2020/NĐ-CP of the Vietnam’s Government, effective from January 01, 2021.               

Phuong Thanh

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