Securities-related offences in Vietnam

Securities-related offences in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Securities-related offences in Vietnam

Securities-related offences prescribed in Article 12 of the Law on Securities 2019 include:

- Direct or indirect commission of frauds, forgery of documents, provision or disclosure of false information to conceal true information or omit necessary information in a manner that causes misunderstanding, adversely affects the offering, listing, trading, investment of securities and provision of securities-related services.

- Use of internal information to buy or sell securities to oneself or another person; revelation or provision of internal information; advising another person to buy or sell securities based on internal information.

- Use of one or several accounts of oneself or another person, trading securities in a manner that creates artificial demand or supply; collaborating with another person in trading securities to manipulate securities prices; use of other methods, with or without false information, to manipulate securities prices.

- Engaging in securities trade or provision of securities-related services without a license, certification or approval from SSC.

- Use of a client’s account or asset without the client’s authorization or against the law; abuse of trust to appropriate a client’s assets.

- Allowing another person to borrow the account to trade securities, hold securities in the name of another person for the purpose of manipulating securities prices.

- Organizing the securities market against regulations of the Law on Securities 2019.

2. State management of securities and the securities authorities in Vietnam

- The Government shall uniform state management of securities and the securities authorities.

- The Ministry of Finance shall be responsible to the Government for state management of securities and the securities market, and have the following duties and entitlements:

+ Propose strategies, plans, schemes and policies on development of the securities market to the Government and the Prime Minister for promulgation;

+ Promulgate or propose promulgation of legislative documents on securities and the securities market;

+ Direct SSC to implement the strategies, plans, schemes and policies on development of the securities market and legislative documents on securities and the securities market.

- Other ministries and ministerial agencies, within the scope of their duties and entitlements, shall cooperate with the Ministry of Finance in state management of securities and the securities market.

- The People’s Committees at all levels, within the scope of their duties and entitlements, are responsible for state management of securities and the securities market in their administrative divisions.

(Article 8 of the Law on Securities 2019)

3. Measures for assurance of security and safety of the securities market in Vietnam

Measures for assurance of security and safety of the securities market in Vietnam include:

- Supervision of security and safety of the securities market;

- Response to and recovery from events that adversely affect the safety, stability and integrity of the securities market;

- Suspension of certain listed or registered securities from trading on the system;

- Suspension of some or all transactions of VSE and its subsidiaries;

- Partial or full suspension or restoration of securities registration, depositing, offsetting, payment functions of Vietnam Securities Depository and Clearing Corporation (VSDCC);

- Temporarily or permanently prohibition from holding certain positions in securities companies, fund management companies, branches of foreign securities companies, investment companies; prohibition from securities activities due to commission of securities offences;

- Freezing the securities account; requesting a competent person to freeze a deposit account involved in a securities fraud.

(Article 7 of the Law on Securities 2019)

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