What are the penalties for trading and holding securities of investors in Vietnam?

According to Article 34 of the Decree No. 156/2020/NĐ-CP of the Vietnam’s Government, violations against regulations on trading and holding of securities by investors are stipulated as follows:

- An investor shall be suspended from trading securities on its/his/her accounts which are lent to others to trade securities or used for holding securities for others for the purpose of manipulating securities market for a period of 06 - 12 months.

- A fine ranging from VND 70.000.000 to VND 100.000.000 shall be imposed for committing one of the following violations:

+ Violating regulations on foreign holdings;

+ Violating regulations on securities investments made by foreign investors in Vietnam’s securities market;

+ Violating regulations on holdings of share capital or stakes of securities companies and securities investment fund management companies;

+ Violating regulations on opening of securities trading accounts, margin accounts and authorized trading accounts;

+ Violating regulations on transactions made on the trading day or within a periodic order matching period.

- A fine ranging from VND 100.000.000 to VND 150.000.000 shall be imposed upon a professional securities investor for transferring privately placed securities in contravention of regulations in Article 31 of the Law on Securities of Vietnam or regulations on private placement and trading of privately placed corporate bonds in domestic market and offering of corporate bonds in international market.

- A fine ranging from VND 400.000.000 to VND 500.000.000 shall be imposed for conducting one or some transactions for the purposes of concealing information about actual ownership of a type of securities for evading or assisting others in evading the obligation to disclose information or the obligations to be discharged in tender offers or regulations on foreign holdings in Vietnam’s securities market. Besides, the securities professional certificate shall be suspended for a period of 18 - 24 months in case of commission of this violation.

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

Ty Na

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