Heavy fine for administrative violations of the regulations on conducting public offer of securities in Vietnam

Heavy fine for administrative violations of the regulations on conducting public offer of securities in Vietnam (Internet image)

Article 6 of Decree 108/2013/ND-CP stipulates the level of administrative penalties for violations of the regulations on conducting public offer of securities in Vietnam as follows:

1. A fine of between VND 70,000,000 and 100,000,000 for any of the following violations:

• a) Using information outside prospectuses or falsified information in comparison with information in prospectus to conduct a market survey before being permitted to conduct a public offering of securities; conducting a market survey in the mass media;

• Failing to strictly comply with regulations on remittance of the amounts collected from the offering into a frozen account or failing to strictly comply with regulations on release of the amounts collected from the offering.

2. A fine of between VND 100,000,000 and 150,000,000 shall be imposed on failing to put securities made public offering into transaction on systematic market within 01 year from the day ending of the offering, unless of failing to be eligible for the listing of securities or registering securities transactions as prescribed by law.

3. A fine of between VND 150,000,000 and 200,000,000 for any of the following violations:

• Offering of securities inconsistently with the plan already registered with State Securities Commission; conducting distribution of securities in contravention of  law;

• Changing purpose or plan on using capital gained from sale offer without approval of Shareholder’s General Assembly or authorization of Shareholder’s General Assembly.

4. A fine of between VND 300,000,000 and 400,000,000 for any of the following violations:

• Conducting a public offering of securities without fully satisfying the specified conditions;

• Conducting a public offering of securities to found an enterprise, except cases permitted by law;

• Conducting a public offering of securities without having registered it with the State Securities Commission.

5. An issuing organization that conducts the public offering of securities without a certificate of public offering of securities shall be suspended from public offering of securities, have its illegal revenue confiscated and be imposed a fine equal to between one and five times the illegal revenue.

6. A fine of between VND 500,000,000 and 600,000,000 shall be imposed on foreign organizations conducting a public offering of securities in Vietnam which infringe the commitment of not remitting the mobilized capital to foreign countries or infringe commitment of not drawing the counterpart own capital in duration of projects granted permit.

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

Ty Na

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE