Fine of up to VND 120,000,000 for act of conducting sale offer of individual stocks when not satisfying full conditions in Vietnam

Fine of up to VND 120,000,000 for act of conducting sale offer of individual stocks when not satisfying full conditions in Vietnam (Internet image)

Clause 3, Article 4 of Decree 108/2013/ND-CP stipulates a fine of between VND 80,000,000 and 120,000,000 for any of the following violations:

• Making, certifying the dossier of registration for sale offer of individual stocks, dossier of issuing individual bonds with untrue information or hiding truth, or seriously-misleading information;

• Conducting sale offer of individual stocks, issue of individual bonds when not satisfying full conditions as prescribed by law;

• Conducting sale offer of individual stocks without registration with State Securities Commission or not yet been informed by State Securities Commission to let organization register and announce on website about sale offer of individual stocks by the registering organization; conducting the issue of convertible bonds, bonds enclosed with the right certificate but failing to register with State Securities Commission;

• Conducting the issue of individual bonds when the issuing plan has not yet been accepted by competent individuals or organizations.

At the same time, the organization that commits the above violation must revoke stocks, bonds which have been offered for sale, issued and must return amounts to investors which are used to buy stocks, bonds or advance security money (if any) added interest calculated according to the interest rate stated on bonds or interest of deposit with undefined term of bank where the infringing organizations open account to collect amounts for purchase of stocks, or advance security money at time when decision of applying this measure takes effect and within 15 days after receiving request of investors. Deadline for investors to send request will be 60 days after the effective day of decision on application of this measure; is forced to cancel information, correcting information for making, certifying the dossier of registration for sale offer of individual stocks, dossier of issuing individual bonds with untrue information or hiding truth, or seriously-misleading information

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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