Fine of between VND 100,000,000 and 150,000,000 for acts of violating regulations on securities escrow transaction in Vietnam

Fine of between VND 100,000,000 and 150,000,000 for acts of violating regulations on securities escrow transaction in Vietnam (Internet image)

Decree 108/2013/ND-CP stipulates that a fine of between VND 100,000,000 and 150,000,000 shall be imposed on Securities Company conducting any of the following violations:

• Conducting act which makes its customers and investors misunderstanding about securities prices;

• Agreeing or giving a specific interest or sharing profit or loss with customers to entice customers in participating in transaction;

• Paying transaction with other person not being person named on transaction account without authorization in writing of person named on account;

• Disclosing customer information, unless it is so provided for by law or requested by state management agencies; failing to supply or supplying insufficient and untruthful information of customers, improperly with deadline, at the request of State Securities Commission;

•  Infringing provisions on operation of self-trading in securities; infringing the regulations on conditions, limitations of guarantee for securities issue; infringing the regulations on investment limitation of the securities company;

• Conducting transactions which result a change in its share or contributed capital ownership in contravention of law; increasing or reducing its charter capital in contravention of law;

• Infringing the regulations on securities escrow transaction;

• Buying or letting its customers buy securities when these customers do not possess sufficient money as required by law, unless otherwise provided for by law.

In addition, this Decree also stipulates that a fine of between VND 150,000,000 and 200,000,000 shall be imposed on securities companies conducting any of the following violations:

• Failing to set up a system of separate management for money of customers or failing to separately manage deposit for securities transaction of each customer or failing to separately manage money of customers from its own money; receiving and paying securities transaction money directly from its customers; accepting authorization of customers to conduct internal money transfer among accounts of customers;

• Infringing the regulations on managing securities of customers;

• Infringing the regulations on limitation of borrowing or limitation of loaning;

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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