Calculation methods of illegal gains from commission of offences against laws on securities and stock markets ìn Vietnam

Le Hai

09:40, 11/01/2021

On December 31, 2020, the Ministry of Finance of Vietnam issued the Circular No. 117/2020/TT-BTC regarding methods for calculation of illegal gains or proceeds from commission of offenses against laws on securities and stock markets.

According to Point a Clause 3 Article 4 of the Circular No. 117/2020/TT-BTC of the Ministry of Finance of Vietnam, the amount of illegal gains obtained from selling the repurchased shares against the plan submitted to the State Securities Commission or publicly disclosed information is calculated according to the following formula:

Illegal gain = Selling volume x (Average selling price – Average buying price) – Taxes and fees payable.

Where:

- Average selling price = Total selling value / Total selling volume.

- Average buying price = Total buying value / Total volume of repurchased stocks.

Moreover, the Circular No. 117/2020/TT-BTC also stipulates that Illegal gains obtained from the act of organizing a securities trading market in contravention of the provisions of Clause 2, Article 42 of the Law on Securities of Vietnam, and the provisions of Clause 1, Article 20 of Decree No. 156/2020/ND-CP are total amount of gains that an organization or individual obtains from choosing a place or form of information exchange to gather stock buy, sell and trade orders;

More details at the Circular No. 117/2020/TT-BTC of the Ministry of Finance of Vietnam, effective from February 15, 2021.

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