Vietnam: Fines for conducting transactions with a value exceeding the registered one in 2021

According to Clause 3 Article 33 of the Decree No. 156/2020/NĐ-CP of the Vietnam’s Government, failing to conduct transactions within the period registered or announced by the Stock Exchange, or conducting transactions with a value exceeding the prescribed or registered one shall be imposed the following fines:

- A fine ranging from VND 5.000.000 to VND 10.000.000 shall be imposed if the transaction value of shares, call options for shares, convertible bonds, call options for convertible bonds, fund certificates, call options for fund certificates or secured warrants of public companies, public investment companies or public funds is less than VND 100.000.000;

- A fine ranging from VND 10.000.000 to VND 30.000.000 shall be imposed if the transaction value of shares, call options for shares, convertible bonds, call options for convertible bonds, fund certificates, call options for fund certificates or secured warrants of public companies, public investment companies or public funds is from VND 100.000.000 to under VND 300.000.000;

- The fine imposed in case the transaction value of shares, call options for shares, convertible bonds, call options for convertible bonds, fund certificates, call options for fund certificates or secured warrants of public companies, public investment companies or public funds is VND 300.000.000 or more shall be the same as the fine imposed for failing to disclose information about expected transactions.

Moreover, a fine ranging from VND 50.000.000 to VND 70.000.000 shall be imposed for committing one of the following violations:

- Failing to disclose information within the prescribed time limit when holding at least 5% of voting shares of a public company or a public securities investment company or fund certificates of a closed-end fund or when terminating the status of major shareholders or investors holding at least 5% of fund certificates of a closed-end fund;

- A founding shareholder fails to disclose information within the prescribed time limit before trading restricted shares.

- An internal actor of a public company or public fund or its/his/her related person concurrently buys and sells securities of the public company or fund certificates, option calls for fund certificates of the public fund or secured warrants of public company, public securities investment company or public fund within the registered transaction period.

More details at the Decree No. 152/2020/NĐ-CP of the Vietnam’s Government, effective from February 15, 2021.

Ty Na

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