Vietnam: Heavy administrative penalties for violations of regulations on trading and holding securities of investors

According to Article 28 of Decree No. 108/2013/NĐ-CP of Vietnam’s Government, administrative penalties for violations of regulations on trading and holding securities of investors are specified as follows:

- A fine of between VND 50,000,000 and 70,000,000 for any of the following violations:

+ Breaching the prescribed stockholding rate applicable to foreign investors; violating the regulation on operation of foreign investors on the Vietnamese securities market;

+ Violating regulations on the rate of ownership of equity capital or contributed capital of securities companies and fund management companies;

+ Infringing the regulations on opening accounts for securities transaction, securities escrow transaction, accounts for authorized transactions;

+ Violating the regulations on securities transaction in transaction day.

- A fine of between VND 100,000,000 and 150,000,000 for conducting one or some transactions with the aim to hide the actual ownership on a securities for shirking obligation of information disclosure in accordance with regulations.

Concurrently, remedial measures are as follows:

- Forcible remittance of illicit earnings from the commission of violations specified above;

- mForcible transfer of shares within 60 days so as to reduce the ratio of stockholding in accordance with regulations, for breaching the prescribed stockholding rate applicable to foreign investors; violating the regulation on operation of foreign investors on the Vietnamese securities market; and violating regulations on the rate of ownership of equity capital or contributed capital of securities companies and fund management companies.

View more details at Decree No. 108/2013/NĐ-CP of Vietnam’s Government, effective from November 15, 2013.

Ty Na

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