Supplementing more cases and fines for violations against regulations on tender offers in Vietnam

In comparison with Article 13 of the Decree No. 108/2013/NĐ-CP, Article 17 of the Decree No. 156/2020/NĐ-CP of the Vietnam’s Government has amended more cases and fines for violations against regulations on tender offers. To be specific:

(1) Supplementing 02 cases of violations that shall be imposed a fine ranging from VND 100.000.000 to VND 150.000.000:

- Failing to ensure the application of increased bid price to all shareholders of the target company or investors of the target investment fund, including shareholders or investors that have sent selling registration forms to the entity making tender offer;

- Failing to designate a securities company to act as the tender offer agent; failing to update information about tender offer agent which must be enclosed with certificate of tender offer agent.

(2) Supplementing 03 cases of violations that shall be imposed a fine ranging from VND 200.000.000 to VND 300.000.000:

- Failing to apply for registration of tender offer as prescribed by law;

- Conducting the tender offer before obtaining the approval of the State Securities Commission of Vietnam (SSC) or before the entity making the tender offer publicly announces the tender offer according to the method prescribed by law;

- Withdrawing the tender offer in cases which are not specified in the tender offer declaration or the prospectus as prescribed by law or before obtaining SSC’s approval.

(3) Amending the fine from VND 300.000.000 to VND 400.000.000 to VND 1.000.000.000 to VND 1.500.000.000 for misusing information about the tender offer to buyer securities or providing information, or enticing or tempting others to buy or sell securities before the official tender offer date.

Note: In case individuals commit violations like those of organizations, the fine level is half of the fine level imposed for organizations.

More details at the Decree No. 156/2020/NĐ-CP of the Vietnam’s Government, effective from January 01, 2021.               

Phuong Thanh

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