Nghị định 156/2020/NĐ-CP xử phạt vi phạm hành chính lĩnh vực chứng khoán và thị trường chứng khoán

DECREE

Providing for the sanctioning of administrative violations in the domains of securities and securities market

 

Pursuant to the Law on Organization of the Government dated June 19, 2015; the Law Amending and Supplementing a Number of Articles of the Law on Organization of the Government and the Law on Organization of Local Administrations dated November 22, 2019;

Pursuant to the Law on Sanctioning of Administrative Violations dated June 20, 2012;

Pursuant to the Law on Securities dated November 26, 2019;

Pursuant to the Law on Enterprises dated June 17, 2020;

Pursuant to the Law on Anti-Money Laundering dated June 18, 2012;

Pursuant to the Law on Counter-Terrorism dated June 12, 2013;

At the proposal of the Minister of Finance;

The Government promulgates the Decree providing for the sanctioning of administrative violations in the domains of securities and securities market.

 

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

1. This Decree provides for acts of administrative violation, forms and levels of sanctions, remedial measures for acts of administrative violation, competence to impose sanctions and competence to make written records of administrative violations in the domains of securities and securities market.

2. Administrative violations in the domains of securities and securities market specified in this Decree include:

a) Violations of regulations on private offering or placement of securities;

b) Violations of regulations on public offering of securities in Vietnam;

c) Violations of regulations on placement of bonds in international markets, offering of securities in foreign countries and placement of new securities as a basis for offering securities depository receipts in foreign countries or supporting placement of securities depository receipts in foreign countries on the basis of stocks issued in Vietnam;

d) Violation of regulations on additional placement of stocks;

dd) Violations of regulations on public companies;

e) Violations of regulations on takeover bid;

g) Violations of regulations on securities listing and securities trading registration;

h) Violations of regulations on organization of securities trading markets;

i) Violations of regulations on securities business and securities practice; violations against regulations on securities trading;

k) Violations of regulations on securities registration, depository, clearing and payment, supervisory banks, depository banks;

l) Violations of regulations on information disclosure and reporting; violations of regulations on auditing public companies, listed institutions, institutions conducting public offering of securities, securities companies, securities investment companies, funds and securities investment fund management companies;

m) Violations of regulations on anti-money laundering and counter-terrorism in the domains of securities and securities market;

n) Violations of regulations on inspection and examination of competent state agencies;

o) Other violations in the domains of securities and securities market specified in this Decree.

Article 2. Subjects of application

1. Vietnamese organizations and individuals, and foreign organizations and individuals (hereinafter referred to as organizations and individuals) committing acts of administrative violation in the domains of securities and securities market specified in this Decree.

2. Organizations specified in Clause 1 of this Article include:

a) Public companies;

b) State enterprises, single-member limited liability companies with 100% of charter capital held by state enterprises, and equitized public non-business units in the form of public offering of securities;

c) Issuing institutions;

d) Listed institutions, trading registration institutions; listing consultancy and trading registration institutions;

dd) Accredited audit institutions;

e) Offering or placement consultancy institutions, placement underwriting institutions; bidding institutions or issuing agents;

g) Securities companies, securities investment fund management companies, branches, representative offices of securities companies, foreign fund management companies in Vietnam, securities investment companies;

h) The Vietnam Stock Exchange and its subsidiary companies, and the Vietnam Securities Depository and Clearing Corporation;

i) Shareholders or investors being organizations;

k) Commercial banks, branches of foreign banks in Vietnam conducting depository, clearing, payment for securities transactions, supervisory banks;

l) Securities-related socio-professional organizations;

m) Other organizations operating in the securities market or involved in securities and securities market activities.

Article 3. Interpretation of terms

According to this Decree, the following terms are construed as follows:

1. “Using inside information to buy and sell securities” means  the commission of prohibited acts in securities and securities market activities as specified in Clause 2, Article 12 of the Law on Securities, including any of, a number of or all of the following acts:

a) Using inside information to buy or sell securities for oneself or for others;

b) Disclosing or providing inside information or advising other people to buy and sell securities on the basis of inside information.

2. “Securities market manipulation” means  the commission of prohibited acts in securities and securities market activities as specified in Clause 3, Article 12 of the Law on Securities, including any of, a number of or all of the following acts:

a) Using one or more than one trading account of one’s own or others or conniving continuously with others in buying or selling securities in order to create sham supply and demand;

b) Placing buying and selling orders of the same type of securities on the same trading day or conniving with others in buying or selling securities, which fails to result in the actual transfer of ownership or which results in ownership only circulating among members in the group with the purpose of creating securities prices or sham supply and demand;

c) Continuously buying or selling securities with a dominant volume at the opening or closing time of the market in order to create a new closing or opening price for such type of securities in the market;

d) Trading in securities in the form of colluding with or enticing others to continuously place buying and selling orders of securities, which greatly affects supply and demand and securities prices or which aims at manipulating securities prices;

dd) Expressing opinions directly or indirectly through the mass media about a type of securities or a securities issuing institution in order to exert impacts on the price of such securities after the trading has been made and hold positions for such type of security;

e) Using other methods or performing other trading acts or combining such methods with spreading untruthful rumors or providing false information to the public in order to create sham supply and demand, or manipulate securities prices.

3. “Forging papers, certifying on forged papers” means the creation or certification of untruthful or inaccurate documents and information for the purpose of offering registration, private placement of securities, public offering of securities, additional placement of stocks, public company registration, listing or trading securities registration.

4. “Licenses and certificates related to securities activities and securities market” means types of licenses and certificates that competent agencies or organizations grant to organizations and individuals in accordance with the securities law to conduct securities and securities market activities.

5. “Using information not included in prospectus or false information in comparison with information included in prospectus to explore the market before being permitted to conduct public offering of securities” means the use of information that is not included in the prospectus or that is inaccurate in comparison with the prospectus’s contents in the dossier of registration for public offering of securities in order to explore the market before being permitted to conduct public offering of securities.

6. “Committing acts that misleads customers and investors about securities prices” means acts of intentionally providing customers and investors with information or giving out opinions, consultancy or recommendation that are inaccurate, incomplete, without bases, or conceal the truth about prices or factors affecting to the price of one or many securities, leading to customers and investors misunderstanding about securities prices and make incorrect decisions in their investment.

7. “False information” means information that is inaccurate in comparison with the actual or true information or in comparison with information certified or authenticated by competent agencies, organizations or individuals.

8. “Inequitable treatment of owners of the same type of stocks or the right to buy stocks and convertible bonds or closed-end fund certificates subject to takeover bidding” means the takeover bidders’ application of different conditions, terms, rights, interests, obligations and responsibilities upon bidding from investors owning the same type of stocks or the right to buy stocks and convertible bonds or closed-end fund certificates that are being bid or are applied in contradiction with the announced terms of bidding.

Article 4. Administrative sanctioning forms and remedial measures

1. Principal sanctioning forms:

a) Warning;

b) Fine;

c) Termination of securities trading for a period of between 01 month and 12 months;

d) Deprivation of the right to use representative office registration certificates or securities practice certificates for a period of between 01 month and 24 months.

2. Additional sanctions:

a) Termination of takeover bidding activities; securities business or services; securities placement underwriting activities; operation of representative offices; securities depository, clearing and payment activities; securities trading or other activities specified in decisions on sanctioning for a period of between 01 month and 12 months;

b) Deprivation of the right to use representative office registration certificates or securities practice certificates for a period of between 01 month and 24 months, in case where it is not applicable as the principal sanction as prescribed in Point d, Clause 1 of this Article;

c) Confiscation of material evidences of administrative violations or means used to commit acts of administrative violation in the domain of securities.

3. Remedial measures:

Depending on nature and severity of their violations, organizations and individuals committing acts of administrative violation in the domains of securities and securities market may be subject to one or a number of the following remedial measures as specified in Chapter II of this Decree:

a) Forcible revocation of offered or issued securities; refund to investors the money used for buying securities or deposits (if any) plus interests calculated according to the interest rate stated on the bonds or the interest rate on demand deposits of banks that violating organizations or individuals open their accounts to collect the money gained from the purchase of securities or deposits at the time the decision on application of this measure takes effect; forcible revocation of additional issued stocks; forcible revocation of securities offered or issued within a period exceeding the prescribed time limit; forcible surrendering of securities or money owned by customers; forcible continuation of private offering or placement of securities within the prescribed time limit;

 b) Forcible disclosure of capital use reports verified by audit departments at the latest General Meeting of Shareholders, or disclosure of detailed explanation for the use of capital obtained from private offering of stocks or public offering of securities in annual financial statements certified by audit departments;

c) Forcible reporting and provision of accurate information; forcible cancellation or correction of information; forcible explanation or provision of information and figures related to audit activities;

d) Forcible surrendering of illegal benefits or illegal revenues gained from committing acts of violations;

dd) Forcible public offering according to registered plans; forcible continuation of buying the remaining stocks or closed-end fund certificates after takeover bidding; forcible waiving of the right to vote directly or through an authorized representative on the number of stocks gained from committing acts of violations;

e) Forcible sale of stocks or equity or capital contributions to reduce the holding rate in accordance with regulations; forcible sale of stocks or closed-end fund certificates to reduce the holding rate to below the level required for public offering;

g) Forcible approval by the latest General Meeting of Shareholders or the Board of Directors or the Board of Members or the President of companies on change of purposes or plans of using the money gained from private offering of securities or public offering of securities;

h) Forcible submission of dossiers of securities trading and listing registration to the Vietnam Stock Exchange and its subsidiaries;

i) Forcible depository and separate management of assets and capital of each entrusting investor or securities investment fund or securities investment company managed by a securities investment fund management company or a foreign fund management company’s Vietnam-based branch; forcible separate management of entrusted assets, assets of securities investment funds or securities investment companies, and assets of a securities investment fund management company or a foreign fund management company’s Vietnam-based branch; forcible depository and separate management of assets of each securities investment fund or securities investment company or each entrusted customer and assets of the bank;

k) Forcible separate management of depository accounts or margin accounts that are money and securities of customers at the Vietnam Securities Depository and Clearing Corporation, depository members or clearing members from assets of the Vietnam Securities Depository and Clearing Corporation, depository members or clearing members; forcible opening of detailed depository accounts or margin accounts for each customer; forcible separate management of assets, trading positions of each customer and of customers from clearing members;

l) Forcible separate management of accounts and assets of clearing members from those of the Vietnam Securities Depository and Clearing Corporation; forcible separate management of accounts and assets of each clearing member; forcible separate management of margin accounts and assets of each clearing member and its own customers; forcible separation between margin assets and checkable deposits for derivative securities trading and checkable deposits for underlying securities trading;

m) Forcible removal of websites, software, trading systems and other equipment used to commit acts of violations;

n) Forcible suspension of procedures for public company registration;

o) Forcible suspension of public placement underwriting of securities; forcible reduction of public placement underwriting value of securities in accordance with regulations.

Article 5. Regulations on fines for individuals and organizations

1. In cases of committing acts of violation specified in Clause 1, Article 35 and Clause 1, Article 36 of this Decree, the maximum fine equal to 10 times the unlawful earning shall be imposed on organizations and the maximum fine equal to 05 times the unlawful earning shall be imposed on individuals. In cases where there is no unlawful earning or the fine level calculated based on an unlawful earning is lower than the maximum fine specified in Clause 2 of this Article, the maximum fine specified in Clause 2 of this Article shall be imposed.

2. The maximum fine to be imposed as an administrative sanction against other violations in the domain of securities is VND 3,000,000,000 for organizations and VND 1,500,000,000 for individuals.

3. The fines specified in Chapter II of this Decree shall be imposed on organizations, except for the cases specified in Clauses 3 and 4, Article 15, Clauses 2 and 4, Article 30, and Clauses 3 and 5, Article 39 of this Decree on fines to be imposed on individuals. In cases where an individual commits the same violation as an organization, the fine to be imposed on such individual shall be equal to half of the fine to be imposed on such organization.

Article 6. Statute of limitations for administrative violation sanctioning in the domain of securities

1. The statute of limitations for sanctioning an administrative violation in the domain of securities shall be complied with Article 6 of the Law on Handling of Administrative Violations.

2. The time to calculate the statute of limitations for sanctioning an administrative violation in the domain of securities is specified as follows:

a) With regard to acts of administrative violation in progress, the statute of limitations shall be calculated from the date the persons competent to perform public duties detect the violations;

b) With regard to committed acts of administrative violation, the statute of limitations shall be calculated from the date the violation ends.

3. The time of ending acts of violation to calculate the statute of limitations for sanctioning a number of acts of violation specified in Chapter II of this Decree is specified as follows:

a) With regard to violations of regulations on securities offering or placement as specified at Point a, Clause 5, Article 8, Points a, b, c, Clause 5, Article 10, and Clause 2, Article 12 of this Decree, the time of ending acts of violation to calculate the statute of limitations for sanctioning is the day of ending the collection of amounts from securities purchase or the last day of rights distribution registration or the day of stock ownership transfer;

b) With regard to violations of regulations on dossiers of public company registration as specified in Clauses 1, 2, 3, 4, Point a, Clause 5, Clause 6, and Clause 7, Article 13 of this Decree, the time of ending acts of violation to calculate the statute of limitations for sanctioning is the day of submitting such public company registration dossier to the State Securities Commission;

c) With regard to violations of regulations on securities listing or securities trading registration as specified in Clause 3, Article 18 of this Decree, the time of ending acts of violation to calculate the statute of limitations for sanctioning is the first trading day of securities on the securities trading system;

d) With regard to the act of erasing or modifying the contents of licenses, representative office registration certificates or securities practice certificates as specified at Point a, Clause 4, Article 24, Point c, Clause 3 Article 30, Point b, Clause 4, Article 32 of this Decree, in cases of failure to determine the date of erasure or modification that changes the contents of licenses, representative office registration certificates or securities practice certificates, the time of ending the acts of violation is the day on which such licenses and certificates are detected to be erased or modified, causing changes of the contents;

dd) With regard to violations of regulations on reporting and information disclosure as specified at Point a, Clause 3 and Point a, Clause 4, Article 42, Point a, Clause 2, and Point a, Clause 3, Article 43, the time of ending the acts of violation to calculate the statute of limitations for sanctioning is the day of making reports or disclosing information.

Article 7. Transfer of dossiers related to violation cases

1. In cases of detecting the acts of violation specified in Clauses 6 and 7, Article 8; Clauses 2 and 3, Article 9; Clause 3,  Article 11; Clauses 3 and 4, Article 12; Clause 8, Article 13; Clauses 4 and 5, Article 18; Clause 4, Article 19; Clause 6, Article 24; Clause 3, Article 28; Clause 4, Article 31; Clause 4, Article 34; Clause 1, Article 35; Clause 1 of Article 36; Clause 3, Article 38; Clause 5, Article 42; Point d, Clause 4 and Point b, Clause 6, Article 45 of this Decree, the persons competent to sanctioning must immediately send dossiers of such violation cases to competent criminal proceedings agencies in accordance with Clauses 1, 2 and 4, Article 62 of the Law on Handling of Administrative Violations.

2. In cases where the criminal proceedings agencies decide not to institute such criminal cases, they shall return the violation case dossiers to the persons with sanctioning competence that have sent such dossiers in accordance with Clause 3, Article 62 of the Law on Handling of Administrative Violations to sanction administrative violations as prescribed in this Decree.

 

Chapter II

ADMINISTRATIVE VIOLATION, SANCTIONING FORMS AND REMEDIAL MEASURES

 

Section 1

VIOLATIONS OF REGULATIONS ON PRIVATE OFFERING, PLACEMENT OF SECURITIES

 

Article 8. Violations of regulations on private offering or placement of securities

1. A fine of between VND 50,000,000 and VND 70,000,000 shall be imposed on any of the following acts of violation:

a) Failing to comply with regulations on announcement of securities placement;

b) Repurchasing bonds before maturity and swapping bonds without approval, or repurchasing bonds before maturity and swapping bonds in contravention of the approved plan;

c) Failing to disclose capital use reports verified by audit departments at the latest General Meeting of Shareholders or failing to explain in detail the use of capital obtained from private offering of stocks in annual financial statements certified by audit departments, except for the cases of offering and placement of stocks for the purpose of swapping debts or swapping stocks or capital contributions.

2. A fine of between VND 70,000,000 and VND 100,000,000 shall be imposed on any of the following acts of violation:

a) Failing to conduct private offering or placement of securities within the prescribed time limit;

b) Failing to conduct private distribution of securities in accordance with law provisions;

c) Failing to transfer the proceeds obtained from offering to an escrow account; releasing or using the proceeds obtained from offering before the State Securities Commission has written notice on the confirmation of offering results;

d) Providing investors with assumptions about or guarantees for incomes or profits they will receive from their investments or guaranteeing that investors will not suffer losses, except for placement of non-convertible bonds;

dd) Failing to register and deposit privately offered or placed bonds, or registering and depositing privately offered or placed bonds against the time limit as prescribed.

3. A fine of between VND 100,000,000 and VND 150,000,000 shall be imposed on any of the following acts of violation:

a) Failing to amend or supplement dossiers of registration for private offering or placement of securities when detecting inaccurate information or omission of contents as required in the dossiers or when there arises information related to the submitted dossier or the dossier submitted to competent organizations or individuals;

b) Failing to make private offering or placement of securities in accordance with the registered plan or the approved plan;

c) Disclosing information before private offering or placement of bonds containing advertising and soliciting contents through the mass media, except for information disclosure as prescribed; advertising the private offering and placement of securities on the mass media;

d) Selecting investors to participate in buying privately offered or placed securities other than the subjects as prescribed by law provisions; failing to keep documents on selection of investors to participate in buying privately offered or placed securities as prescribed by law provisions;

dd) Certifying the transfer of privately offered securities during the time of transfer restriction or in the cases where the law requires no transfer; transferring privately offered or placed bonds in violation of Article 31 of the Law on Securities and law provisions on private offering and trading of corporate bonds in the domestic market and offering of corporate bonds to international markets.

4. A fine of between VND 150,000,000 and VND 200,000,000 shall be imposed on any of the following acts of violation:

a) Changing the purpose or plan to use the proceeds from private offering or placement of securities without being approved by the General Meeting of Shareholders or the Board of Directors or the Board of Members or the President of company in accordance with law provisions, or changing the plan to use the proceeds from the private offering or placement of securities without being authorized by the General Meeting of Shareholders;

b) Using the proceeds from the private offering of securities against the purpose or plan approved by the General Meeting of Shareholders or the Board of Directors or the Board of Members or the President of company, or against the contents disclosed to investors, or the contents reported to competent state management agencies or approved by competent agencies.

5. A fine of between VND 200,000,000 and VND 300,000,000 shall be imposed on any of the following acts of violation:

a) Conducting private offering or placement of securities without meeting all conditions as prescribed by law provisions; conducting private offering or placement of securities without registering with the State Securities Commission in cases where the private offering or issuing institution is a public company, a securities company or a securities investment fund management company or when the State Securities Commission has not yet notified in writing to permit the securities offering or placement, and has not announced on its website of the full receipt of registration dossiers for the securities offering or issuing institution’s private offering or placement of securities;

b) Failing to ensure that the private offering or placement of bonds meets all conditions as prescribed by law provisions; failing to ensuring that the information in the dossier for private offering or placement of bonds is provided in an accurate, truthful, verifiable manner, does not cause misleading and has all contents affecting the investors’ decisions; failing to check participants in the purchase of privately placed bonds to ensure compliance with law provisions.

6. A fine of between VND 400,000,000 and VND 500,000,000 shall be imposed on the act of making or certifying registration dossiers for private offering or placement of securities that contain information deliberately made in contrary to the truth or hiding the truth.

7. A fine of between VND 1,000,000,000 and VND 1,500,000,000 shall be imposed on the act of forging papers or certifying on forged papers proving eligibility for offering or placement in registration dossiers for private offering and placement of securities.

8. Additional sanctions:

Confiscation of material evidences and means used to commit acts of administrative violation that are forged papers, for the acts of violation specified in Clause 7 of this Article.

9. Remedial measures:

a) Forcible revocation of offered or issued securities; refund to investors the money used for buying securities or deposits (if any) plus interests calculated according to the interest rate stated on the bonds or the interest rate on demand deposits of banks that violating organizations or individuals open their accounts to collect money gained from the purchase of securities or deposits at the time the decision on application of this measure takes effect within  a period of 15 days from the date of receiving the investors’ request for acts of violation specified at Points a and b, Clause 3 of this Article in cases of having conducted offering or placement of securities; or for acts of violation specified in Clause 4 and Point a, Clause 5 of this Article. The time limit for the investors to send their request is no more than 60 days from the effective date of the decision on application of this measure;

b) Forcible disclosure of capital use reports verified by audit departments at the latest General Meeting of Shareholders, or forcible disclosure of detailed explanation for the use of capital obtained from private offering of stocks or public offering of securities in annual financial statements certified by audit departments, for the acts of violation specified at Point c, Clause 1 of this Article;

c) Forcible approval by the latest General Meeting of Shareholders or the Board of Directors or the Board of Members or the President of companies on changes of purposes or plans of using the proceeds gained from private offering of securities, for the acts of violation specified at Point a, Clause 4 of this Article;

d) Forcible cancellation of information, for the acts of violation specified at Point c, Clause 3 of this Article;

dd) Forcible continuation of private offering or placement of securities within the prescribed time limit; forcible revocation of securities offered or issued within a period exceeding the prescribed time limit; refund to investors the money used for buying securities or deposits (if any) plus interests calculated according to the interest rate stated on the bonds or the interest rate on demand deposits of banks that violating organizations or individuals open their accounts to collect money gained from the purchase of securities or deposits at the time the decision on application of this measure takes effect, for the acts of violation specified at Point a, Clause 2 of this Article. The time limit for securities revocation and money refund to investors is no more than 30 days from the effective date of the decision on application of this measure;

e) Forcible revocation of offered or issued securities; refund to investors the money used for buying securities or deposits (if any) plus interests calculated according to the interest rate stated on the bonds or the interest rate on demand deposits of banks that violating organizations or individuals open their accounts to collect money gained from the purchase of securities or deposits at the time the decision on application of this measure takes effect, for the acts of violation specified in Clauses 6 and 7 of this Article in cases of having conducted securities offering or placement. The time limit for securities revocation and money refund to investors is no more than 60 days from the effective date of the decision on application of this measure.

 

Section 2

VIOLATIONS OF REGULATIONS ON PUBLIC OFFERING OF SECURITIES IN VIETNAM

 

Article 9. Violations of regulations on dossiers of registration for public offering of securities in Vietnam

1. A fine of between VND 100,000,000 and VND 150,000,000 shall be imposed on the act of failing to amend or supplement dossiers of registration for public offering of securities when detecting inaccurate information or omission of contents as required in the dossier or when there arise information related to the dossiers of registration for public offering of securities.

2. A fine of between VND 400,000,000 and VND 500,000,000 shall be imposed on the act of making or certifying registration dossiers for public offering of securities that contain information deliberately made in contrary to the truth or hiding the truth.

3. A fine of between VND 2,500,000,000 and VND 3,000,000,000 shall be imposed on the act of forging papers or certifying on forged papers proving eligibility for offering in the registration dossiers for public offering of securities.

4. Additional sanctions:

Confiscation of material evidences or means used to commit acts of administrative violation that are forged papers, for the acts of violation specified in Clause 3 of this Article.

5. Remedial measures:

a) Forcible revocation of offered securities; refund to investors the money to buy securities or deposits (if any) plus interests calculated according to the interest rate on demand deposits of banks that violating organizations or individuals open their accounts to collect money gained from the purchase of securities or deposits at the time the decision on application of this measure takes effect within a period of 15 days after receiving investors’ request for the violations specified in Clause 1 of this Article in cases of having conducted public offering of securities. The time limit for the investors to send their request is no more than 60 days from the effective date of the decision on application of this measure;

b) Forcible revocation of offered securities; refund to investors the money to buy securities or a deposit (if any) plus interest calculated at the interest rate on demand deposits of the bank that violating organizations or individuals open their accounts to collect money used for buying securities or deposits at the time the decision on application of this measure takes effect, for the acts of violation specified in Clauses 2 and 3 of this Article in cases of having conducted public offering of securities. The time limit for securities revocation and money refund to investors is no more than 60 days from the effective date of the decision on application of this measure;

c) Forcible cancellation of information or correction of information, for the acts of violation specified in Clause 2 of this Article.

Article 10. Violations of regulations on public offering of securities in Vietnam

1. A fine of between VND 70,000,000 and VND 100,000,000 shall be imposed on the act of providing investors with assumptions about or guarantees for incomes or profits they will receive from their investments or guaranteeing that investors will not suffer losses, except for public offering of non-convertible bonds.

2. A fine of between VND 100,000,000 and VND 150,000,000 shall be imposed on any of the following acts of violation:

a) Using information not included in prospectus or false information in comparison with information included in prospectus to explore the market before being permitted to conduct public offering of securities; conducting public distribution of securities in contravention of law provisions;

b) Failing to transfer the proceeds from offering to an escrow account; releasing or using the proceeds from offering before the State Securities Commission has written notice on the confirmation of offering result;

c) Failing to disclose capital use reports verified by audit departments at the latest General Meeting of Shareholders, or failing to explain in detail the use of capital obtained from public offering of securities in annual financial statements certified by audit departments.

3. A fine of between VND 150,000,000 and VND 200,000,000 shall be imposed on a placement underwriting institution when committing any of the following acts of violation:

a) Underwriting public placement of securities without meeting all conditions as prescribed by law provisions;

b) Underwriting public placement of securities in the form of firm commitment with a total value of securities larger than its equity or exceeding 15 times the difference between the value of short-term assets and short-term liabilities stated in the latest quarterly financial statement.

4. A fine of between VND 300,000,000 and VND 400,000,000 shall be imposed on any of the following acts of violation:

a) Conducting public offering of securities in contravention of the plan registered with the State Securities Commission;

b) Changing the purpose or plan of using the proceeds gained from public offering of securities without being approved by the General Meeting of Shareholders or without being authorized by the General Meeting of Shareholders, or changing the plan of using the proceeds gained from public offering of securities with a changing value equal to 50% or more of the proceeds gained from the offering, except for offering of non-convertible bonds or offering without warrants according to the plan approved by the Board of Directors; using the proceeds gained from public offering of securities in contravention of the purpose and plan approved by the General Meeting of Shareholders or the contents disclosed to investors or the contents reported to the State Securities Committee.

5. A fine of between VND 500,000,000 and VND 600,000,000 shall be imposed on any of the following acts of violation:

a) Conducting public offering of securities without meeting all conditions as prescribed by law provisions;

b) Conducting public offering of securities to establish enterprises, except for public offering of securities to establish the enterprises as specified in the Government's Decree guiding Article 14 and Clause 6, Article 15 of the Law on Securities;

c) Conducting public offering of securities without submitting registration dossiers to the State Securities Commission or when having submitted registration dossiers to the State Securities Commission but having not been granted a certificate of public offering of securities;

d) Failing to underwrite public placement of securities according to placement underwriting commitments in the registration dossier for public offering of securities.

6. A fine of between VND 600,000,000 and VND 700,000,000 shall be imposed on foreign organizations conducting public offering of securities in Vietnam that violate the commitment not to transfer mobilized capital to foreign countries or the commitment not to withdraw counterpart equity capital during the project is licensed.

7. Additional sanctions:

Termination of securities placement underwriting activities for a period of between 06 months and 12 months, for the acts of violation specified at Point b, Clause 3 of this Article.

8. Remedial measures:

a) Forcible revocation of offered securities; refund to investors the money to buy securities or deposits (if any) plus interest calculated at the interest rate on demand deposits of the bank that violating organizations or individuals open their accounts to collect the money gained from the purchase of securities or deposits at the time the decision on application of this measure takes effect within no more than 15 days after receiving investors’ request for the violations specified in Clause 4, Points a, b, c Clause 5, Clause 6 of this Article. The time limit for the investors to send their request is no more than 60 days from the effective date of the decision on application of this measure;

b) Forcible approval by the latest General Meeting of Shareholders on the changes of the purpose or plan of using the proceeds gained from public offering of securities, for the acts of violation specified at Point b, Clause 4 of this Article;

c) Forcible disclosure of capital use reports verified by audit departments at the latest General Meeting of Shareholders, or disclosure of detailed explanation for the use of capital obtained from public offering of securities in annual financial statements certified by audit departments, for the acts of violation specified at Point c, Clause 2 of this Article;

d) Forcible suspension of securities placement underwriting activities to the public, for the acts of violation specified at Point a, Clause 3 of this Article;

dd) Forcible reduction of the value of securities placement underwriting to the public in accordance with regulations, for the acts of violation specified at Point b, Clause 3 of this Article.

 

Section 3

VIOLATIONS OF REGULATIONS ON PLACEMENT OF BONDS IN INTERNATIONAL MARKETS, OFFERING OF SECURITIES IN FOREIGN COUNTRIES AND PLACEMENT OF NEW SECURITIES AS A BASIS FOR OFFERING SECURITIES DEPOSITORY RECEIPTS IN FOREIGN COUNTRIES OR SUPPORTING PLACEMENT OF SECURITIES DEPOSITORY RECEIPTS IN FOREIGN COUNTRIES ON THE BASIS OF STOCKS ISSUED IN VIETNAM

 

Article 11. Violations of regulations on placement of bonds in international markets, offering of securities in foreign countries, and placement of new securities as a basis for offering securities depository receipts in foreign countries or supporting placement of securities depository receipts in foreign countries on the basis of stocks issued in Vietnam

1. A fine of between VND 100,000,000 and VND 200,000,000 shall be imposed on the act of failing to amend or supplement dossiers and documents on placement of bonds in international markets, offering of securities in foreign countries, or placement of new securities as the basis for offering securities depository receipts in foreign countries or supporting placement of foreign securities depository receipts in foreign countries on the basis of stocks issued in Vietnam when detecting inaccurate information or omission of contents as required in the dossiers or when there arises information related to the submitted dossiers and documents.

2. A fine of between VND 300,000,000 and VND 400,000,000 shall be imposed on any of the following acts of violations:

a) Conducting placement of bonds in international markets, offering of securities in foreign countries, or placement of new securities as the basis for offering securities depository receipts in foreign countries or supporting placement of foreign securities depository receipts in foreign countries on the basis of stocks issued in Vietnam without meeting all conditions as prescribed by law provisions;

b) Conducting placement of bonds in international markets, offering of securities in foreign countries, or placement of new securities as the basis for offering securities depository receipts in foreign countries or supporting placement of foreign securities depository receipts in foreign countries on the basis of stocks issued in Vietnam when they have not registered with competent state agencies or have not been appraised, approved by competent agencies or organizations or have not been received  their written opinions.

3. A fine of between VND 400,000,000 and VND 500,000,000 shall be imposed on the act of making and certifying dossiers and documents on placement of bonds in international markets, offering of securities in foreign countries, or placement of new securities as the basis for offering securities depository receipts in foreign countries or supporting placement of foreign securities depository receipts in foreign countries on the basis of stocks issued in Vietnam that contain information deliberately made in contrary to the truth or hiding the truth.

4. Remedial measures:

Forcible cancellation of information or correction of information, for the acts of violation specified in Clause 3 of this Article.

 

Section 4

VIOLATIONS OF REGULATIONS ON ADDITIONAL PLACEMENT OF STOCKS

 

Article 12. Violations of regulations on additional placement of stocks

1. A fine of between VND 100,000,000 and VND 150,000,000 shall be imposed on any of the following acts of violation:

a) Failing to amend or supplement dossiers or reporting documents on additional placement of stocks when detecting inaccurate information or omission of contents as required in the dossiers and documents or when there arises information related to the submitted dossiers and documents.;

b) Conducting additional placement of stocks in contravention of the plan reported to or registered with the State Securities Commission.

2. A fine of between VND 200,000,000 and VND 300,000,000 shall be imposed on any of the following acts of violation:

a) Conducting additional placement of stocks without reporting to the State Securities Commission or when having reported but the State Securities Commission have not yet issued a written notice on the full receipt of reporting documents on additional placement of stocks;

b) Conducting additional placement of stocks without registering with the State Securities Commission; conducting additional placement of stocks when they have not been approved or are ineligible for approval by the State Securities Commission;

c) Conducting additional placement of stocks without meeting all conditions as prescribed by law provisions.

3. A fine of between VND 400,000,000 and VND 500,000,000 shall be imposed on the act of making, certifying dossiers and reporting documents on additional placement of stocks that contain information deliberately made in contrary to the truth or hiding the truth.

4. A fine of between VND 1,000,000,000 and VND 1,500,000,000 shall be imposed on the act of forging papers, certifying on forged papers proving eligibility for additional placement in the reporting dossiers on additional placement of stocks.

5. Additional sanctions:

Confiscation of material evidences and means used for committing administrative violations that are forged papers, for the acts of violation specified in Clause 4 of this Article.

6. Remedial measures:

a) Forcible cancellation of information or correction of information, for the acts of violation specified in Clause 3 of this Article;

b) Forcible revocation of issued stocks; refund to investors the money to buy stocks or deposits (if any) plus the interest calculated at the interest rate on demand deposits of the bank that violating organizations or individuals open their accounts to collect the money gained from the purchase of stocks or deposits at the time the decision on application of this measure takes effect, within a period of no more than15 days after receiving investors’ request for the violations specified at Point a, Clause 1 in cases of having conducted placement of stocks; for the acts of violations specified at Point b, Clause 1 and Clause 2 of this Article. The time limit for the investors to send their request is no more than 60 days from the effective date of the decision on application of this measure;

c) Forcible revocation of additional issued stocks; refund to investors the money to buy stocks or deposits (if any) plus the interest calculated at the interest rate on demand deposits of the bank that violating organizations or individuals open their accounts to collect the money gained from the purchase of stocks or deposits at the time the decision on application of this measure takes effect, within a period of no more than15 days after receiving the investors’ request for the violations specified in Clause 3 and Clause 4 of this Article in cases of having conducted additional placement of stocks. The time limit for the investors to send their request is no more than 60 days from the effective date of the decision on application of this measure.

 

Section 5

VIOLATIONS OF REGULATIONS ON PUBLIC COMPANIES

 

Article 13. Violations of regulations on public company registration dossiers

1. A warning shall be imposed on the act of delaying the submission of public company registration dossiers for a period of up to 01 month.

2. A fine of between VND 5,000,000 and VND 10,000,000 shall be imposed on the act of delaying the submission of public company registration dossiers from more than 01 month to 03 months.

3. A fine of between VND 10,000,000 and VND 30,000,000 shall be imposed on the act of delaying the submission of public company registration dossiers from more than 03 months to 06 months.

4. A fine of between VND 50,000,000 and VND 70,000,000 shall be imposed on the act of delaying the submission of public company registration dossiers from more than 06 months to 12 months.

5. A fine of between VND 70,000,000 and VND 100,000,000 shall be imposed on one of the following acts of violation:

a) Delaying the submission of public company registration dossiers from more than 12 months to 24 months;

b) Dossiers of public company registration contain inaccurate information about business operation, structure of shareholders, assets, financial status and other information in the dossiers of public company registration.

6. A fine of between VND 100,000,000 and VND 150,000,000 shall be imposed on the act of delaying the submission of public company registration dossiers from more than 24 months to 36 months.

7. A fine of between VND 150,000,000 and VND 200,000,000 shall be imposed on the act of delaying the submission of public company registration dossiers for a period of more than 36 months or failing to submit public company registration dossiers.

8. A fine of between VND 1,000,000,000 and VND 2,000,000,000 shall be imposed on the act of forging papers or certifying on forged papers proving the eligibility for being a public company in public company registration dossiers.

9. Additional sanctions:

Confiscation of material evidences and means used for committing administrative violations that are forged papers, for the acts of violation specified in Clause 8 of this Article.

10. Remedial measures:

a) Forcible provision of accurate information, for the acts of violation specified at Point b, Clause 5 of this Article;

b) Forcible suspension of procedures for public company registration, for the acts of violation specified in Clause 8 of this Article.

Article 14. Violations of regulations on cancellation of public company status

1. With regard to violations of regulations on notification to the State Securities Commission when a company no longer satisfies the conditions for being treated as a public company as specified in Article 32 of the Law on Securities, such company shall be sanctioned as follows:

a) A warning shall be imposed on the act of sending a notice to the State Securities Commission less than 15 days behind the prescribed time limit;

b) A fine of between VND 5,000,000 and VND 10,000,000 shall be imposed on the act of sending a notice to the State Securities Commission 15 days or more behind the prescribed time limit;

c) A fine of between VND 10,000,000 and VND 15,000,000 shall be imposed on failure to notify the State Securities Commission as prescribed.

2. A fine of between VND 30,000,000 and VND 50,000,000 shall be imposed on the act of failing to submit the dossier of cancellation of public company status as prescribed in Article 39 of the Law on Securities, in cases where a company is required to submit its dossier of cancellation of public company in accordance with law provisions.

Article 15. Violations of regulations on public company governance

1. A fine of between VND 5,000,000 and VND 10,000,000 shall be imposed on a public company that commits any of the following acts of violation:

a) Failing to develop and submit the internal regulation on corporate governance to the General Meeting of Shareholders for approval;

b) Failing to appoint a person in charge of corporate governance in accordance with law provisions.

2. A fine of between VND 10,000,000 and VND 30,000,000 shall be imposed on a public company that fail to open a separate section on the remuneration of each member of the Board of Directors, the salary of the General Director (Director) and other managers in the annual financial statements of the company, and report to the General Meeting of Shareholders at the annual meeting.

3. A fine of between VND 50,000,000 and VND 70,000,000 shall be imposed on members of the Board of Directors, the Director (General Director), executives and managers of enterprises, and the person in charge of corporate governance who violate regulations on provision of information to the Board of Directors or the Supervisory Board.

4. A fine of between VND 70,000,000 and VND 100,000,000 shall be imposed on individuals defined in this Clause that commit any of the following acts of violation:

a) Chairperson of the Board of Directors concurrently holds the title of Director or General Director of the same public company; members of the Board of Directors of a public company concurrently are members of the Board of Directors of more than 05 other companies;

b) Members of the Board of Directors fail to report to the Board of Directors within the prescribed time limit or report in an insufficient manner to the Board of Directors the remunerations received from subsidiaries, associates and other organizations;

c) Members of the Board of Directors, members of the Supervisory Board (Supervisors), General Director (Director), other managers of the public company fail to notify the Board of Directors or the Supervisory Board as prescribed of trading between companies, subsidiaries or companies controlled by public companies with over 50% or more of the charter capital and such entities or persons related to such entities in accordance with law provisions;

d) Members of the Board of Directors, members of the Supervisory Board (Supervisors), and General Director (Director) fail to report to the Board of Directors or the Supervisory Board as prescribed by law on trading between the company and a company in which a members of the Board of Directors, a member of the Supervisory Board (Supervisors), or General Director (Director) has been a founding member or an enterprise manager during the last three years before the time of trading, or trading between the company and a company in which a concerned person of members of the Board of Directors, members of the Supervisory Board (Supervisors), General Director (Director) has been  a member of the Board of Directors, General Director (Director) or a major shareholder;

dd) Chairperson of the Board of Directors, members of the Board of Directors, General Director (Director), other managers of the public company perform contracts or trading without approval by the General Meeting of Shareholders or the Board of Directors in accordance with law provisions.

5. A fine of between VND 100,000,000 and VND 150,000,000 shall be imposed on a public company that commits any of the following acts of violation:

a) Failing to ensure the number of members of the Board of Directors as prescribed by law provisions; failing to ensure at least 1/3 of the total number of members of the Board of Directors being non-executive members; failing to ensure the structure, number of independent members of the Board of Directors as prescribed;

b) Failing to disclose information on making a list of shareholders entitled to attend the General Meeting of Shareholders at least 20 days prior to the final registration date;

c) Failing to invite a representative of an auditing institution accredited to audit annual financial statements of the company to participate in the Annual General Meeting of Shareholders in cases where its annual financial statement audit report contains material, disclaiming, contrary exceptions;

d) Violations of regulations on trading with shareholders, enterprise managers and concerned persons of such entities.

Article 16. Violations of regulations on stock repurchase

1. A fine of between VND 50,000,000 and VND 70,000,000 shall be imposed on any of the following acts of violation:

a) Repurchasing stocks in contravention of law provisions on term, price and volume of trading;

b) Failing to carry out procedures for charter capital reduction or carrying out procedures for charter capital reduction behind the prescribed time limit after repurchasing stocks.

2. A fine of between VND 70,000,000 and VND 100,000,000 shall be imposed on any of the following acts of violation:

a) Repurchasing stocks without reporting to the State Securities Commission in accordance with law provisions or when having reported but the State Securities Commission has not yet issued written notice of receiving complete reports on the stock repurchase;

b) Repurchasing stocks without meeting all conditions as prescribed by law provisions;

c) Changing the plan for stock repurchasing, except for force majeure cases or cases approved by the State Securities Commission;

d) Repurchasing stocks in contravention of the plan reported to the State Securities Commission or information disclosed to the public;

dd) Selling repurchased stocks, except for the cases specified in Clause 7 Article 36 of the Law on Securities.

3. Remedial measures:

Forcible surrendering of illegal benefits gained from committing the acts of violations specified at Point dd, Clause 2 of this Article.

 

Section 6

VIOLATIONS OF REGULATIONS ON TAKEOVER BID

 

Article 17. Violation of regulations on takeover bid

1. A fine of between VND 100,000,000 and VND 150,000,000 shall be imposed on any of the following acts of violation:

a) Directly or indirectly buying or committing to buy stocks, rights to buy shares and convertible bonds of target companies or fund certificates of target investment funds, rights to buy fund certificates of target investment funds beyond the takeover bid;

b) Selling or committing to sell stocks or closed-end fund certificates that they are conducting the takeover bid;

c) Unfairly treating those who own the same types of stocks, right to buy shares and convertible bonds or closed-end fund certificates that are under takeover bid;

d) Providing private information for certain shareholders or investors or providing information for shareholders or investors at different levels or at different times;

dd) Conducting takeover bid in contravention of the prescribed time or time registered with the State Securities Commission;

e) Refusing to purchase stocks of the target company’s shareholders or fund certificates of the target investment fund’s investors during the takeover bid;

g) Purchasing stocks of the target company or fund certificates of the target investment fund according to terms other than those announced in the registration for takeover bid;

h) Failing to purchase or purchasing the remaining stocks or closed-end fund certificates after the takeover bid in contravention of the time regulations or purchasing under the conditions on prices and payment methods other than those applicable to the takeover bid;

i) Failing to report and disclose information on the takeover bid, or reporting and disclosing information on the takeover bid in contravention of law provisions;

k) Failing to ensure the increase in bid price is applied to all shareholders of the target company or investors of the target investment fund, including shareholders or investors who have submitted their registration to the bidder;

l) Failing to appoint a securities company as an agent to make the takeover bid; failing to update on such takeover bid agent enclosed with confirmation of the takeover bid agent being changed.

2. A fine of between VND 150,000,000 and VND 200,000,000 shall be imposed on a securities company acting as a takeover bid agent that commits any of the following acts of violation:

a) Failing to provide instructions for individuals or organizations to make the takeover bid in accordance with regulations, causing their violations of regulations in Clause 1 of this Article;

b) Failing to ensure that individuals or organizations making a takeover bid have enough money to make a bid at the time of the official bid as registered.

3. A fine of between VND 200,000,000 and VND 300,000,000 shall be imposed on any of the following acts of violation:

a) Failing to register for a takeover bid as prescribed by law provisions;

b) Making a takeover bid when the State Securities Commission has not approved in writing the registration or when the organizations or individuals conducting the takeover bid have not publicly announced the takeover bid by the methods prescribed by law provisions;

c) Withdrawing the request for a takeover bid in cases which are not mentioned in the document on disclosure of information the takeover bid or the prospectus in accordance with law provisions or without approval by the State Securities Commission. .

4. A fine of between VND 1,000,000,000 and VND 1,500,000,000 shall be imposed on the act of taking advantage of information on a takeover bid to buy and sell securities for themselves or to provide information, incite or entice others to buy and sell securities before the time of the official takeover bid.

5. Additional sanctions:

Termination of takeover bid activities for a period of between 01 month and 03 months, for the acts of violation specified at Points a, b, c and d, Clause 1 of this Article.

6. Remedial measures:

a) Forcible takeover bid according to the registered plan, for the acts of violation specified at Points e, g, Clause 1 and Point c, Clause 3 of this Article;

b) Forcible purchase of the remaining stocks or closed-end fund certificates after the takeover bid, for the acts of violation specified at Point h, Clause 1 of this Article;

c) Forcible waiver of the right to vote directly or through an authorized representative based on the number of shares obtained from committing the acts of violation specified at Points a and b, Clause 3 of this Article;

d) Forcible sale of stocks or closed-end fund certificates to reduce the holding rate below the level required to make a takeover bid, for the acts of violation specified at Points a and b, Clause 3 of this Article, within a period of no more than 06 months from the date the decision on application of this measure takes effect;

dd) Forcible surrendering of illegal benefits gained from committing the acts of violation specified in Clause 4 of this Article.

 

Section 7

VIOLATIONS OF REGULATIONS ON SECURITIES LISTING, SECURITIES TRADING REGISTRATION

 

Article 18. Violations of regulations on securities listing and securities trading registration

1. A fine of between VND 70,000,000 and VND 100,000,000 shall be imposed on the act of failing to carry out procedures for changing the registration of securities listing or securities trading or on performance of additional securities listing or securities trading registration behind the prescribed time limit.

2. A fine of between VND 100,000,000 and VND 150,000,000 shall be imposed on the act of failing to amend or supplement a dossier of securities listing or securities trading registration when detecting inaccurate information or omission of contents as required in the dossier or when there arises information related to the submitted dossier.

3. The act of failing to register for trading or listing securities or the registration for trading or listing securities behind the prescribed time limit shall be sanctioned as follows:

a) A fine of between VND 10,000,000 and VND 30,000,000 shall be imposed on the registration for securities trading or listing 01 month beyond the prescribed the time limit;

b) A fine of between VND 30,000,000 and VND 70,000,000 shall be imposed on the registration for securities trading or listing more than 01 month to 03 months beyond the prescribed the time limit;

c) A fine of between VND 70,000,000 and VND 100,000,000 shall be imposed on the registration for securities trading or listing more than 03 months to 06 months beyond the prescribed the time limit;

d) A fine of between VND 100,000,000 and VND 200,000,000 shall be imposed on the registration for securities trading or listing more than 06 months to 09 months beyond the prescribed the time limit;

dd) A fine of between VND 200,000,000 and VND 300,000,000 shall be imposed on the registration for securities trading or listing more than 09 months to 12 months beyond the prescribed the time limit;

e) A fine of between VND 300,000,000 and VND 400,000,000 shall be imposed on the registration for securities trading or listing more than 12 months beyond the prescribed the time limit, or on the act of failing to register for securities trading or listing.

4. A fine of between VND 400,000,000 and VND 500,000,000 shall be imposed for the act of making or certifying dossiers of securities listing or securities trading registration that contain information deliberately made in contrary to the truth or hiding the truth.

5. A fine of between VND 2,500,000,000 and VND 3,000,000,000 shall be imposed on the act of forging papers, certifying on forged papers proving eligibility for securities listing in the securities listing registration dossier or forging papers, certifying on forged papers in the securities trading registration dossier.

6. Additional sanctions:

Confiscation of material evidences and means used for committing administrative violations that are forged papers, for the acts of violation specified in Clause 5 of this Article.

8. Remedial measures:

a) Forcible submission of dossiers of securities trading or securities listing registration to the Vietnam Stock Exchange and its subsidiaries within a period of no more than 60 days, for the acts of violations specified in Clause 3 of this Article;

b) Forcible cancellation of information or correction of information, for the acts of violation specified in Clause 4 of this Article.

Article 19. Violations of regulations on securities listing of Vietnamese issuing institutions at foreign stock exchanges

1. A fine of between VND 100,000,000 and VND 150,000,000 shall be imposed on the act of failing to amend or supplement a dossier for registration of securities listing at a foreign Stock Exchange when detecting inaccurate information or omission of contents as required in the dossier or when there arises information related to the submitted dossier.

2. A fine of between VND 150,000,000 and VND 200,000,000 shall be imposed on an institution issuing new securities to serve as a basis for offering of securities depository certificates in foreign countries that fail to report to the State Securities Commission on the registration for listing depository certificates at foreign stock exchanges.

3. A fine of between VND 300,000,000 and VND 400,000,000 shall be imposed on any of the following acts of violation:

a) Failing to submit dossiers for registration of securities listing at a foreign stock exchange to the State Securities Commission in accordance with law provisions;

b) Listing securities at a foreign stock exchange without approval by the State Securities Commission.

4. A fine of between VND 400,000,000 and VND 500,000,000 shall be imposed on the act of making or certifying the dossier of registration for securities listing at a foreign stock exchange that contain information deliberately made in contrary to the truth or hiding the truth.

5. Remedial measures:

Forcible cancellation of information or correction of information for the acts of violation specified in Clause 4 of this Article.

 

Section 8

VIOLATIONS OF REGULATIONS ON ORGANIZATION OF SECURITIES TRADING MARKETS

 

Article 20. Violations of regulations on organization of securities trading markets

1. A fine of between VND 2,500,000,000 and VND 3,000,000,000 shall be imposed on the act of organizing a securities trading market in contravention of the provisions of Clause 2, Article 42 of the Law on Securities.

2. Additional sanctions:

a) Termination of securities business and securities service for a period of between 03 months and 05 months for securities companies, securities investment fund management companies, Vietnam-based branches of securities companies and foreign fund management companies that commit the violations specified in Clause 1 of this Article;

b) Deprivation of the right to use the securities practice certificate for a period of between 12 months and 18 months, for securities practitioners committing the acts of violation specified in Clause 1 of this Article.

3. Remedial measures:

a) Forcible surrendering of illegal benefits gained from committing the acts of violation specified in Clause 1 of this Article;

b) Forcible removal of websites, software, trading systems and other equipment used to commit the acts of violation specified in Clause 1 of this Article.

Article 21. Violations of regulations on management of listing and trading registration of the Vietnam Stock Exchange and its subsidiaries

1. A fine of between VND 200,000,000 and VND 300,000,000 shall be imposed on the Vietnam Stock Exchange and its subsidiaries that fail to handle cases that organize listing without fully maintaining listing conditions as prescribed.

2. A fine of between VND 300,000,000 and VND 400,000,000 shall be imposed on the Vietnam Stock Exchange and its subsidiaries that have approved, changed or canceled the listing or trading registration in contravention of regulations.

Article 22. Violations of regulations on member management of the Stock Exchange of Vietnam and its subsidiaries

1. A fine of between VND 200,000,000 and VND 300,000,000 shall be imposed on the Vietnam Stock Exchange and its subsidiaries that fail to handle cases in which members fail to fully maintain membership conditions or fail to fully comply with obligations of members in accordance with law provisions and regulations of the Vietnam Stock Exchange in accordance with Article 46 of the Law on Securities.

2. A fine of between VND 300,000,000 and VND 400,000,000 shall be imposed on the Vietnam Stock Exchange and its subsidiaries that commit any of the following acts of violation:

a) Accepting the membership registration when the conditions are not fully satisfied;

b) Terminating or canceling the membership status when such cases do not fall into the cases of suspension or termination of membership.

Article 23. Violations of regulations on trading and supervision of the Vietnam Stock Exchange and its subsidiaries

1. A fine of between VND 200,000,000 and VND 300,000,000 shall be imposed on the Vietnam Stock Exchange and its subsidiaries that commit any of the following acts of violation:

a) Organizing trading of new securities, changing and applying a new trading method, putting into operation a new trading system without approval by the State Securities Commission;

b) Failing to handle the violations of trading regulations or failing to comply with the trading supervision process as prescribed that cause violations;

c) Failing to warn, control and restrict securities trading in accordance with law provisions and regulations of the Vietnam Stock Exchange.

2. A fine of between VND 300,000,000 and VND 400,000,000 shall be imposed on the Vietnam Stock Exchange and its subsidiaries that fail to suspend, terminate or cancel securities trading in accordance with the trading regulations of the Vietnam Stock Exchange in necessary cases to protect investors.

 

Section 9

VIOLATIONS OF REGULATIONS ON SECURITIES TRADING AND SECURITIES PRACTICE

 

Article 24. Violations of regulations on establishment and operation licenses

1. A fine of between VND 10,000,000 and VND 30,000,000 shall be imposed on Vietnam-based branches of foreign securities companies and fund management companies that fail to carry out procedures for modification of branch establishment and operation licenses in accordance with law provisions.

2. A fine of between VND 70,000,000 and VND 100,000,000 shall be imposed on securities companies, securities investment fund management companies, securities investment companies, Vietnam-based branches of securities companies or foreign fund management companies that commit any of the following acts of violation:

a) Failing to amend or supplement a dossier of registration for issuance or modification of a license or certificate when detecting inaccurate information or omission of contents as required in the dossier or when there arises information related to the submitted dossier;

b) Conducting securities business before the official date of operation.

3. A fine of between VND 100,000,000 and VND 150,000,000 shall be imposed on founding shareholders or capital contributors upon the establishment of a securities company or securities investment fund management company who transfer shares or distribute their capital contributions during the restriction period of transfer.

4. A fine of between VND 150,000,000 and VND 200,000,000 shall be imposed on any of the following acts of violation:

a) Erasing or modifying the license contents;

b) Borrowing, renting, receiving the transfer of licenses or lending, leasing, transferring licenses; failing to perform securities service business or provision on their own names; using the name of other organizations or individuals or letting other organizations or individuals use their names to perform securities service business or provision.

5. A fine of between VND 200,000,000 and VND 300,000,000 shall be imposed on any of the following acts of violation:

a) Conducting securities business without a license issued by the State Securities Commission;

b) Performing business or provision of securities service or other services without reporting to the State Securities Commission or without any written opinion given by the State Securities Commission or without regulation or guidance of competent state agencies, while such business or provision activities are required to report to the State Securities Commission before its performance; providing securities services inconsistent with the securities trading operations licensed in accordance with Article 86 of the Law on Securities;

c) Operating for improper purposes or in contravention of the contents specified in the license, certificate or approval;

d) Continuing to operate or perform prohibited or restricted acts during the period of suspension or termination of operation, or revocation of the license or certificate.

6. A fine of between VND 400,000,000 and VND 500,000,000 shall be imposed on any of the following acts of violation:

a) Making and certifying a dossier of registration for issuance or supplementation of establishment and operation licenses that contain forged documents or information deliberately made in contrary to the truth or hiding the truth;

b) Making and certifying a dossier of registration for certificates of eligibility for derivative securities trading, provision of derivative securities clearing and settlement services that contain forged documents or false information.

7. Additional sanctions:

a) Termination of securities business and services for a period of between 01 month and 03 months, for the acts of violations specified at Points b, c, Clause 5 and 6 of this Article;

b) Confiscation of material evidences and means used for committing administrative violations that are erased or modified licenses, for the acts of violation specified at Point a, Clause 4 of this Article.

8. Remedial measures:

a) Forcible surrendering of illegal benefits gained from committing the act of leasing or transferring the licenses specified at Point b, Clause 4 of this Article;

b) Forcible cancellation of information or correction of information, for the acts of violation specified in Clause 6 of this Article.

Article 25. Violations of regulations on must-be-approved changes

1. A fine of between VND 50,000,000 and VND 100,000,000 shall be imposed on securities companies, securities investment fund management companies, securities investment companies, Vietnam-based branches of securities companies or foreign fund management companies that change the name of companies, branches, representative offices or trading offices without a written approval by the State Securities Commission.

2. A fine of between VND 100,000,000 and VND 150,000,000 shall be imposed on securities companies, securities investment fund management companies, Vietnam-based branches of securities companies or foreign fund management companies that commit any of the following acts without a written approval of the State Securities Commission:

a) Changing location of their head offices at home and abroad;

b) Establishing and closing branches, representative offices and trading offices at home and abroad;

c) Changing business operations of branches; making indirect offshore investment; establishing subsidiary companies in foreign countries, receiving trusteeship for indirect offshore investment;

d) Suspending operation, except for cases of force majeure.

3. A fine of between VND 200,000,000 and VND 300,000,000 shall be imposed on securities companies or securities investment fund management companies that perform any of the following acts without a written approval by the State Securities Commission:

a) Offering and listing securities of securities companies or securities investment fund management companies in foreign countries;

b) Performing the services specified at Point b, Clause 1, Article 86 of the Law on Securities;

c) Terminating the provision of services, except for cases of force majeure.

4. A fine of between VND 400,000,000 and VND 500,000,000 shall be imposed on reorganization of securities companies or securities investment fund management companies without a written approval by competent agencies.

Article 26. Violations of regulations on the operation of securities companies, Vietnam-based branches of foreign securities companies

1. A fine of between VND 50,000,000 and VND 70,000,000 shall be imposed on any of the following acts of violation:

a) Failing to fully promulgate internal processes, professional processes, internal control and risk management processes, and code of practice ethics in accordance with business operations and provided services;

b) Failing to comply with law provisions on securities, corporate laws on governance and administration for securities companies that are not public companies, Vietnam-based branches of foreign securities companies;

c) Making and certifying a dossier of registration for online securities trading service provision that contains inaccurate information or failing to modify or supplement the dossier when detecting inaccurate information or omission of contents as required in the dossier;

d) Failing to collect, search or update fully information about customers, except for cases where customers do not provide sufficient information; failing to provide complete and truthful information to customers as prescribed by law provisions;

dd) Failing to notify of trading methods, order placing, trading deposit, payment time, trading fees, provided services, conditions for service provision, list of securities practitioners and other information at head offices, branches or trading offices as prescribed by law provisions;

e) Failing to notify customers of the sale of securities mortgage or the sale of pledged securities or the transaction results within the time limit prescribed by law provisions.

2. A fine of between VND 70,000,000 and VND 100,000,000 shall be imposed on any of the following acts of violation:

a) Failing to keep sufficient customer information records; failing to keep sufficient records, data, documents and vouchers related to the operation of securities companies, Vietnam-based branches of foreign securities companies; records, data, documents and documents being kept fail to reflect in detail and accurately trading of customers, securities companies or Vietnam-based branches of foreign securities companies in accordance with law provisions; Vietnam-based branches of foreign securities companies directly manage deposits for securities trading and open securities trading accounts for domestic investors;

b) Committing violations of regulations on opening of securities trading accounts for customers;

c) Committing violations of regulations on responsibilities of securities companies in the performance of securities investment advisory or financial advisory; performing prohibited acts in securities investment advisory or financial advisory;

d) Committing violations of regulations on entrustment to manage securities trading accounts of individual investors;

dd) Failing to establish and maintain the internal audit, internal control, and risk management systems in each business operation; failing to ensure the personnel structure in the internal control or internal audit departments or failing to ensure the personnel structure meeting the conditions; failing to supervise and prevent conflicts of interest within the companies and in transactions with concerned persons, between customers or between securities companies, Vietnam-based branches of foreign securities companies and customers; failing to establish the information technology system and backup databases to ensure the operation in a safe and continuous manner;

e) Providing customers with assumptions about or guarantees for incomes or profits they will receive from their investments or guaranteeing that customers will not suffer losses, except for the cases of investment in securities with fixed incomes;

g) Failing to organize a supervisory department; failing to supervise securities trading in accordance with regulations of the Minister of Finance; failing to report when detecting unusual signs of securities trading as prescribed.

3. A fine of between VND 100,000,000 and VND 150,000,000 shall be imposed on any of the following acts of violation:

a) Performing acts that mislead customers and investors about securities prices;

b) Agreeing on or offering specific interest rates or sharing profits or losses with customers to entice customers to participate in trading;

c) Making a trading payment with a person other than the account holder without a written authorization by the account holder;

d) Disclosing customer information, except for the cases with consent of customers or at the request of a competent agency; failing to provide or to provide in a complete, accurate and timely manner information about customers at the request of the State Securities Commission in accordance with Article 89 of the Law on Securities;

dd) Violations of regulations on securities dealing; violations of regulations on conditions and restrictions on securities placement underwriting; violations of regulations on investment restriction of securities companies; violations of regulations on issuance and offering of financial products;

e) Failing to increase or decrease in charter capitals in accordance with law provisions;

g) Violations of regulations on receiving orders and executing trading orders of customers;

h) Failing to provide infrastructure and techniques for the online securities trading system as prescribed by law provisions; failing to take measures to ensure the safety of system and data of customers;

i) Failing to perform authentication for customer involved in online securities transactions in accordance with law provisions.

4. The violations of regulations on margin trading shall be sanctioned as follows:

a) A fine of between VND 50,000,000 and VND 70,000,000 shall be imposed on the violations of regulations on opening margin accounts, securities permitted for margin trading, and term of lending for margin trading;

b) A fine of between VND 70,000,000 and VND 100,000,000 shall be imposed on the violations of regulations on lending limit of margin trading, or termination of margin trading;

c) A fine of between VND 100,000,000 and VND 150,000,000 shall be imposed on the violations of regulations on initial margin rate, maintenance margin rate or margin trading restriction, or on the act of allowing customers to conduct margin trading or withdraw money in excess of the available purchasing power in their margin trading accounts;

d) A fine of between VND 150,000,000 and VND 200,000,000 shall be imposed on the act of failing to separately manage margin trading accounts from regular trading accounts and accounts using loans of credit institutions, daily trading accounts, and secured short sale trading accounts.

5. A fine of between VND 150,000,000 and VND 200,000,000 shall be imposed on any of the following acts of violation:

a) Failing to manage assets of each customer separately, and manage assets of customers separately from those of securities companies, Vietnam-based branches of foreign securities companies;

b) Directly receiving and paying the money for securities trading of customers; receiving authorization of customers to perform internal transfers between the customers’ accounts;

c) Committing violations of regulations on securities management of customers;

d) Committing violations of regulations on restriction on lending and borrowing loans;

dd) Committing violations of regulations on contribution of capitals for establishment, purchase of shares or capital contributions from other securities companies in Vietnam.

6. A fine of between VND 400,000,000 and VND 500,000,000 shall be imposed on any of the following acts of violation:

a) Abusing or misappropriating securities and money owned by customers or withholding securities and money owned by customers in the form of depository under the name of the securities company;

b) Lending money and securities in customers’ accounts;

c) Using customers’ securities as pledge.

7. Additional sanctions:

a) Termination of securities business and services for a period of between 01 month and 03 months, for the acts of violation specified at Point a, Clause 6 of this Article;

b) Deprivation of the right to use securities practice certificates for a period of between 01 month and 03 months for securities practitioners committing the acts of violation specified at Point e Clause 2, Points a, b, d, g, Clause 3 and for a period of between 06 months and 12 months for securities practitioners committing the acts of violation specified in Clause 6 of this Article.

8. Remedial measures:

Forcible return of securities and money owned by customers within a period of no more than 60 days from the effective date of the decision on application of this measure, for the acts of violation specified in Clause 6 of this Article.

Article 27. Violations of regulations on the operation of securities investment fund management companies and Vietnam-based branches of foreign fund management companies

1. A fine of between VND 50,000,000 and VND 70,000,000 shall be imposed on securities investment fund management companies which commit one of the following acts of violation:

a) Committing acts of violation specified at Points a, b and d, Clause 1, Article 26 of this Decree;

b) Failing to sign a written contract with customers when providing services to customers or the contract signed with customers does not have sufficient contents in accordance with law provisions;

c) Failing to comply with the Charter of the securities investment fund, the Charter of the securities investment company, the investment portfolio management agreement;

d) Failure to provide information, or failing to provide information in a timely, sufficient, or accurate manner for the depository bank, the supervisory bank

2. A fine of between VND 70,000,000 and VND 100,000,000 shall be imposed on securities investment fund management companies and Vietnam-based branches of foreign fund management companies which commit one of the following acts of violation:

a) Failing to establish and maintain the risk management system, the internal control and audit system; failing to ensure the human resource in the department for internal control and audit or failing to ensure the human resource which satisfy the given requirements; failing to monitor and prevent conflicts of interest within the company and in transactions with relevant persons, between customers or between securities investment fund management companies, securities practitioners and customers; failing to establish an IT system and a backup database to ensure the safety and continuity of their operation.

b) Committing violations of regulations on responsibilities of securities investment fund management companies in carrying out securities investment consultancy operation; committing prohibited acts in securities investment consultancy operation;

c) Failing to comply with procedures for distributing stock orders, distributing transaction assets when conducting transactions for securities investment funds, securities investment companies, entrusting investors and for companies;

d) Failing to comply with the investment rate or failing to readjust investment portfolio in accordance with law provisions; failing to comply with regulations on safe investment rate of securities investment fund management companies, of securities investment funds when making indirect offshore investment; failing to comply with regulations on providing information, advertisement, introduction of the fund;

dd) Failing to comply with regulations on authorizing operation of securities investment fund management companies;

e) Providing customers with assumptions about or guarantees for incomes or profits they will receive from their investments, or from guaranteeing that customers will not suffer losses, except the case of investment in securities with fixed incomes.

g) Committing violations of regulations on  opening securities trading accounts, opening derivative securities trading accounts for themselves, for entrusting customers, securities investment funds, securities investment companies under the management of securities investment fund management companies;

h) Conducting asset transactions for entrusting customers who entrust their investment to a securities company with the transaction volume and value in a year exceeding the limit on the rate of the total transaction volume and value in a year of such entrusting customers;

i) Committing acts of violation specified at Point a, Clause 2, Article 26 of this Decree.

3. A fine of between VND 100,000,000 and VND 150,000,000 shall be imposed on securities investment fund management companies which commit one of the following acts of violation:

a) Committing acts of violation specified at Points b, d and e, Clause 3, Article 26 of this Decree;

b) Failing to comply with the procedure, and making incorrect evaluation of the fund certificate price, the value of net assets, the value of investment portfolio of the securities investment fund of a securities investment company, or of an entrusting investor;

c) Committing violations of regulations on  restricting operation of securities investment fund management companies, affiliated persons of securities investment fund management companies and staff of securities investment fund management companies; Committing violations of regulations on restricting operation of securities investment companies; Committing violations of regulations on  real estate investment funds; Committing violations of regulations on  restricting operation of securities investment funds;

d) Failing to guarantee the asset investment of entrusting customers being foreign individuals and organizations who comply with law regulations on foreign currency management, and on the foreign holding rate in Vietnamese enterprises.

dd) Representing as the property owner on behalf of an entrusting customer when there is no written request by such customer to do so or conducting transactions for an entrusting customer in cases of representing as the property owner on behalf of such entrusting customer but not being granted such customer’s permission before conducting transactions.

4. A fine of between VND 150,000,000 and VND 200,000,000 shall be imposed on securities investment fund management companies which commit one of the following acts of violation:

a) Performing acts of avoiding legal obligations, limiting the scope of compensation and financial liability of a securities investment fund management company, transferring risks from a securities investment fund management company to its investors;

b) Making use of the assets of a securities investment fund, a securities investment company to invest in the investment fund or the securities investment company itself or in other securities investment funds, securities investment companies established and run in Vietnam or making use of the assets of a securities investment fund, a securities investment company to contribute capitals to a joint venture or an associate or to make financial investment in a securities investment fund management company and affiliated persons of such securities investment fund management company;

c) Violations of regulations on making financial investment, buying stocks, capital contribution portions, bonds, contributing capitals to establish an enterprise and hold stocks;

d) Violations of regulations on borrowing loans to finance activities of an investment fund, or a securities investment company;

dd) Making use of the assets of a securities investment fund, a securities investment company, or entrusted assets to pay debt obligations, to provide loans or guarantee for any loans of the company, its affiliated persons or its partners;

e) Violations of regulations on providing loans or allocating the company’s capitals for organizations and individuals;

g) Lending customers securities or other assets; brokering transactions for customers and a third party;

h) Failing to conduct security depository and failing to perform separate management of assets and capitals of each entrusting customers, of each securities investment fund, of a securities investment company managed by the securities investment fund management company; failing to manage entrusted assets, assets of a securities investment fund, of a securities investment company and assets of the securities investment fund management company itself separately;

i) Failing to make investment in assets for entrusting customers in accordance with law provisions;

k) Colluding with a securities company to overtrade the securities in the investment portfolio of a fund managed by the securities investment fund management company so that the securities company can earn from the brokerage fees;

l) Making investment in derivative securities from the entrusted capitals, from the capitals of a securities investment fund or a securities investment company in cases where the investment portfolio management agreement, the Charter of such securities investment fund or securities investment company does not include any provision which allows for the use of entrusted capitals, the capitals of a securities investment fund or a securities investment company to invest in derivative securities;

m) Making investment in derivative securities from their own capitals, from the borrowed capitals or other legally mobilized capital sources.

5. A fine of between VND 200,000,000 and VND 300,000,000 shall be imposed on Vietnam-based branches of foreign fund management companies which commit one of the following acts of violation:

a) Violations of regulations on mobilizing and managing funds and assets in Vietnam;

b) Violations of regulations on managing foreign exchange and the holding rate of Vietnamese enterprises;

c) Failing to make investment in assets for entrusting customers in accordance with law provisions;

d) Offering or issuing securities to mobilize capitals for themselves in Vietnam;

dd) Violating law regulations on securities on transferring profits abroad;

e) Failing to conduct security depository and failing to perform separate management of assets and capitals of each entrusting customers, of each securities investment fund, of a securities investment company managed by the securities investment fund management company; failing to manage entrusted assets, assets of a securities investment fund, of a securities investment company and assets of the branch itself separately;

6. Additional sanctions:

a) Deprivation of the right to use the securities practice certificate for a definite time of between 01 month to 03 months for securities practitioners committing acts of violation specified at Point g, Clause 2, Points b, d, Clause 3, Points g, i, Clause 4 of this Article;

b) Suspension of operation of securities business and services of securities investment fund management companies, branches of foreign fund management companies for a definite time of between 01 month and 03 months for the acts of violation specified at Point i, Clause 4 and Point c, Clause 5 of this Article.

7. Remedial measures:

Forcible depository and separate management of assets and capitals of each entrusted investor, of each securities investment fund, of a securities investment company managed by a securities investment fund management company, or a Vietnam-based branch of foreign fund management company; forcible separate management of entrusted assets, assets of a securities investment fund, of a securities investment company, and assets of the securities investment fund management company itself or a Vietnam-based branch of the foreign fund management company in a maximum time limit of 06 months from the date on which the decision on applying such measure takes effect for the acts of violation specified at Point h, Clause 4 and Point e, Clause 5 of this Article.

Article 28. Violations of regulations on the operation of private securities investment companies that manage capital by themselves

1. A fine of between VND 50,000,000 and VND 70,000,000 shall be imposed on private securities investment companies that manage capitals by themselves which commit one of the following acts of violation:

a) Failing to amend, supplement to the dossier applying for the establishment of a private securities investment company that manages capitals by itself when detecting inaccurate information or lack of contents required to be included in the dossier, or when there is new information arising related to the submitted dossier;

b) Failing to promulgate the valuation process of the net asset value of securities investment companies or failing to determine the net asset value or mispricing the net asset value of securities investment companies.

2. A fine of between VND 70,000,000 and VND 100,000,000 shall be imposed on private securities investment companies that manage capitals by themselves which commit one of the following acts of violation:

a) Participating in the construction, implementation and development of real estate projects;

b) Committing violations of regulations on restricting operation of securities investment companies, on safe investment rate when making indirect offshore investment;

c) Performing transactions which change the share ownership or the capital contribution portions not in accordance with law regulations; increasing or decreasing the charter capital not in accordance with law regulations.

3. A fine of between VND 200,000,000 and VND 300,000,000 shall be imposed on private securities investment companies managing capitals by themselves that establish and confirm the dossier applying for the establishment of a private securities investment company that manage capitals by itself which contains misinformation, inaccurate information or conceals facts.

4. Remedial measures:

Forcible cancellation or correction of information for the acts of violation specified in Clause 3 of this Article.

Article 29. Violations of regulations on the operation of distribution agents for securities investment fund certificates

1. A fine of between VND 10,000,000 and VND 30,000,000 shall be imposed on distribution agents for securities investment fund certificates which commit one of the following acts of violation:

a) Failing to satisfy the conditions for registration of operation of distribution agents;

b) Failing to identify investor’s information or failing to establish a system for managing and storing sufficient information of investors in accordance with law provisions;

c) Committing violations of regulations on receiving and transferring stock orders of investors; failing to establish a system to receive stock orders in accordance with law provisions;

d) Committing violations of regulations on managing investors’ accounts and sub-accounts;

dd) Failing to update the number of securities transactions and the ownership status of foreign investors in a sufficient, accurate and timely manner;

e) Failing to update information on the ownership after transactions of investors, failing to send a written confirmation of the transaction to investors;

2. A fine of between VND 30,000,000 and VND 50,000,000 shall be imposed on distribution agents for securities investment fund certificates which commit one of the following acts of violation:

a) Committing violations of regulations on distributing fund certificates;

b) Committing violations of regulations on performing buy and sell orders of fund certificates.

3. A fine of between VND 70,000,000 and VND 100,000,000 shall be imposed on distribution agents for securities investment fund certificates failing to register for the operation of distribution agents in accordance with law provisions.

Article 30. Violations of regulations on representative offices of securities companies, securities investment fund management companies, foreign securities companies, securities investment fund management companies in Vietnam

1. A fine of between VND 10,000,000 and VND 30,000,000 shall be imposed on acts of failing to implement procedures for adjusting, amending, supplementing or reissuing the certificate of operation registration, operation termination of representative offices in accordance with law provisions.

2. A fine of between VND 30,000,000 and VND 50,000,000 shall be imposed on the Head Representative or the staff member who concurrently hold a different position in cases where it is not allowed to hold concurrent positions.

3. A fine of between VND 50,000,000 and VND 70,000,000 shall be imposed on any of the following acts of violation:

a) Operating a representative office when failing to meet all conditions; failing to register for the operation of a representative office or operating a representative office without having been approved or granted a certificate for registration of operation of a representative office;

b) Acting as a representative for other organizations; performing the transfer of the certificate for registration of operation of a representative office for other individuals, organizations;

c) Erasing, correcting contents causing changes in the content of the certificate for registration of operation of a representative office.

4. A fine of between VND 100,000,000 and VND 200,000,000 shall be imposed on Heads of representative offices of foreign securities companies, securities investment fund management companies in Vietnam who conduct business activities in Vietnam outside the prescribed scope of operation of such representative offices.

5. Deprivation of the right to use the certificate for registration of operation of a representative office for a definite time of between 18 months and 24 months shall be imposed on securities business organizations committing one of the following acts:

a) Preparing, confirming the application dossier for the issuance of the certificate for registration of operation of a representative office with misleading or inaccurate information;

b) Operating the representative office for incorrect purposes or failing to operate in compliance with contents in the certificate for registration of operation of the representative office.

6. Additional sanctions:

a) Suspension of operation of the representative office for a definite time of between 01 month and 03 months for the acts of violation specified at Point b, Clause 3 of this Article;

b) Confiscation of material evidences and means used in administrative violations which are certificates having been erased or amended for the acts of violation specified at Point c, Clause 3 of this Article.

Article 31. Violations of regulations on the establishment of member funds

1. A fine of between VND 50,000,000 and VND 70,000,000 shall be imposed on acts of failing to amend, supplement to the application dossier for the establishment of a member fund when detecting inaccurate information or lack of contents required to be included in the dossier, or when there is new information arising related to the submitted dossier.

2. A fine of between VND 70,000,000 and VND 100,000,000 shall be imposed on any of the following acts of violation:

a) Using mass media for advertisement, for call for capital, or for market survey during the establishment of member funds;

b) Failing to increase, or decrease the charter capital in accordance with law provisions.

3. A fine of between VND 100,000,000 and VND 150,000,000 shall be imposed on any of the following acts of violation:

a) Failing to report on the establishment of the member fund in accordance with law provisions or establishing a member fund when conditions in accordance with law provisions have yet to be satisfied;

b) Failing to report on the risk, or loss of the fund’s assets within the prescribed time limit.

4. A fine of between VND 400,000,000 and VND 500,000,000 shall be imposed on the act of preparing, confirming the application dossier for the establishment of a member funds which contains misleading and incorrect information, or conceals the fact.

5. Remedial measures:

Forcible cancellation or correction of information for the acts of violation specified in Clause 4 of this Article.

Article 32. Violations of regulations on conducting securities practices and on managing staff and securities practitioners

1. A fine of between VND 30,000,000 and VND 50,000,000 shall be imposed on any of the following acts of violation:

a) Failing to report, within the prescribed time limit, when changing securities practitioners;

b) Failing to ensure staff working for the division in charge of professional practices to have enough securities practice certificates in line with the professional practice they are undertaking; arranging staff who have securities practice certificates to perform practices that are not appropriate to the type of securities practice certificate they are granted.

c) Arranging staff and securities practitioners to concurrently hold positions that are not allowed to be undertaken concurrently.

2. A fine of between VND 50,000,000 and VND 70,000,000 shall be imposed on any of the following acts of violation:

a) Arranging persons who have not had the securities practice certificate, or arranging persons currently being subject to the deprivation of the right to use the securities practice certificate – to perform professional practices or to hold positions that require the securities practice certificate in accordance with law provisions

b) Failing to report within the prescribed time limit upon detecting securities practitioners committing acts of violation specified in Clause 3 and Clause 4 of this Article.

3. Deprivation of the right to use the securities practice certificate for a definite time of between 06 months and 12 months shall be imposed on  securities practitioners who commit one of the following acts of violation:

a) Concurrently working for other organizations having the ownership relations with the securities company, or the fund management company where they are working;

b) Concurrently working as the Director or the General Director of an institution offering securities to the public or listed institution;

4. A fine of between VND 100,000,000 and VND 150,000,000 shall be imposed on any of the following acts of violation:

a) Borrowing, leasing the securities practice certificate or lending, letting for hire the securities practice certificate;

b) Erasing, or amending which causes changes in the content of the securities practice certificate.

5. A fine of between VND 150,000,000 and VND 200,000,000 shall be imposed on any of the following acts of violation:

a) Using name or account of customers for securities registration and transactions;

b) Buying and selling securities on trust accounts beyond the entrustment scope, the value of trust assets and investment objectives of entrusting customers; making investment on behalf of customers, except for the case of being entrusted to manage securities trading accounts of individual investors;

c) Conducting brokerage in borrowing and lending transactions of assets between customers or between a customer and a third party, except for the case of lending securities for correcting trading errors or for conducting swap transactions of fund certificates for portfolio swaps.

6. A fine of between VND 400,000,000 and VND 500,000,000 shall be imposed on any of the following acts of violation:

a) Using customer’s account and assets without being entrusted by the customer or not in accordance with the entrustment contents; using customer’s account or money, securities on the customer’s account without being authorized by the securities company in accordance with the written entrustment of the customer to the securities company;

b) Conducting the sale or letting customers sell securities when they do not own such securities or lending securities to customers in cases where it is not allowed to do so.

7. Additional sanctions:

a) Deprivation of the right to use the securities practice certificate for a definite time of between 01 month and 03 months for the acts of violation specified at Point a, Clause 4 of this Article

b) Confiscation of material evidences and means used in administrative violations which are securities practice certificates having been erased or amended for the acts of violation specified at Point b, Clause 4 of this Article.

c) Deprivation of the right to use the securities practice certificate for a definite time of between 06 months and 12 months for the acts of violation specified in Clause 5 and Clause 6 of this Article.

8. Remedial measures:

a) Forcible surrendering of illegal benefits gained from the act of letting securities practice certificates for hire specified at Point a, Clause 4 of this Article;

b) Forcible surrendering of securities or money owned by customers in a maximum time limit of 60 days from the date on which the decision on applying such measure takes effect, for the acts of violation specified at Point a, Clause 6 of this Article.

 

Section 10

VIOLATIONS OF REGULATIONS ON SECURITIES TRADING

 

Article 33. Violations of regulations on transactions by founding shareholders; majority shareholders, groups of affiliated persons owning at least 5% of voting stocks of a public company; investors, groups of affiliated persons owning at least 5% of fund certificates of a closed-end fund; groups of affiliated foreign investors owning at least 5% of voting stocks of an issuing institution or at least 5% of fund certificates of a closed-end fund; insiders of a public company, a public securities investment company, a public fund and their affiliated persons

1. A fine of between VND 25,000,000 and VND 35,000,000 shall be imposed on the act of failing to disclose information within the prescribed time limit when there is any change in the rate of stocks or fund certificates owned that exceeds 1% of the number of voting stocks or fund certificates of a closed-end fund.

2. The act of failing to disclose information on planned transactions, on transaction results within the prescribed time limit shall be imposed fines in accordance with the value of securities registered for trading as follows:

a) A fine of between VND 5,000,000 and VND 10,000,000 shall be imposed if the value of securities registered for trading ranges from VND 50,000,000 to less than VND 100,000,000 stocks, the right to buy stocks, convertible bonds, the right to buy convertible bonds, fund certificates, the right to buy fund certificates or covered warrants based on the securities of a public company, a public securities investment company, or a public fund;

b) A fine of between VND 10,000,000 and VND 30,000,000 shall be imposed if the value of securities registered for trading ranges from VND 100,000,000 to less than VND 300,000,000 stocks, the right to buy stocks, convertible bonds, the right to buy convertible bonds, fund certificates, the right to buy fund certificates or covered warrants based on the securities of a public company, a public securities investment company, or a public fund;

c) A fine of between VND 30,000,000 and VND 50,000,000 shall be imposed if the value of securities registered for trading ranges from VND 300,000,000 to less than VND 500,000,000 stocks, the right to buy stocks, convertible bonds, the right to buy convertible bonds, fund certificates, the right to buy fund certificates or covered warrants based on the securities of a public company, a public securities investment company, or a public fund;

d) A fine of between VND 50,000,000 and VND 70,000,000 shall be imposed if the value of securities registered for trading ranges from VND 500,000,000 to less than VND 1,000,000,000 stocks, the right to buy stocks, convertible bonds, the right to buy convertible bonds, fund certificates, the right to buy fund certificates or covered warrants based on the securities of a public company, a public securities investment company, or a public fund;

dd) A fine of between VND 70,000,000 and VND 90,000,000 shall be imposed if the value of securities registered for trading ranges from VND 1,000,000,000 to less than VND 3,000,000,000 stocks, the right to buy stocks, convertible bonds, the right to buy convertible bonds, fund certificates, the right to buy fund certificates or covered warrants based on the securities of a public company, a public securities investment company, or a public fund;

e) A fine of between VND 90,000,000 and VND 110,000,000 shall be imposed if the value of securities registered for trading ranges from VND 3,000,000,000 to less than VND 5,000,000,000 stocks, the right to buy stocks, convertible bonds, the right to buy convertible bonds, fund certificates, the right to buy fund certificates or covered warrants based on the securities of a public company, a public securities investment company, or a public fund;

g) A fine of between VND 110,000,000 and VND 150,000,000 shall be imposed if the value of securities registered for trading ranges from VND 5,000,000,000 to less than VND 10,000,000,000 stocks, the right to buy stocks, convertible bonds, the right to buy convertible bonds, fund certificates, the right to buy fund certificates or covered warrants based on the securities of a public company, a public securities investment company, or a public fund;

h) Imposing fines equal to 5% of the value of securities registered for trading but not exceeding VND 3,000,000,000 if the value of securities registered for trading ranges from VND 10,000,000,000 or more stocks, the right to buy stocks, convertible bonds, the right to buy convertible bonds, fund certificates, the right to buy fund certificates or covered warrants based on the securities of a public company, a public securities investment company, or a public fund.

3. The act of conducting transactions outside the registered time or outside the time the Stock Exchange discloses information, exceeding the value accordance with law provisions or exceeding the registered value shall be imposed fines in accordance with the actual trading value of securities as follows:

a) A fine of between VND 5,000,000 and VND 10,000,000 shall be imposed if the trading value is less than VND 100,000,000 stocks, the right to buy stocks, convertible bonds, the right to buy convertible bonds, fund certificates, the right to buy fund certificates or covered warrants based on securities of a public company, a public securities investment company, or a public fund;

b) A fine of between VND 10,000,000 and VND 30,000,000 shall be imposed if the trading value ranges from VND 100,000,000 to less than VND 300,000,000 stocks, the right to buy stocks, convertible bonds, the right to buy convertible bonds, fund certificates, the right to buy fund certificates or covered warrants based on securities of a public company, a public securities investment company, or a public fund;

c) Transactions with trading value from VND 300,000,000 or more stocks, the right to buy stocks, convertible bonds, the right to buy convertible bonds, fund certificates, the right to buy fund certificates or covered warrants based on securities of a public company, a public securities investment company, or a public fund shall be imposed fines similar to the act of failing to disclose information on planned transactions which is specified in Clause 5 of this Article.

4. A fine of between VND 50,000,000 and VND 70,000,000 shall be imposed on the following acts of violation:

a) Failing to disclose information within the prescribed time limit when owning at least 5% of voting stocks of a public company, a public securities investment company or fund certificates of a closed-end fund or when no longer being the majority shareholder, or investor owning at least 5% of fund certificates of a closed-end fund;

b) Being the founding shareholder who fail to disclose information within the prescribed time limit before conducting transactions of stocks which are subject to transfer restriction.

c) Being the insiders of a public company, insiders of a public fund and the affiliated persons of the insiders who concurrently buy and sell securities of a public company or fund certificates, the right to buy fund certificates of a public fund or covered warrants based on the securities of a public company, a public securities investment company, a public fund during the time of registration for trading.

5. The act of failing to disclose information on planned transactions shall be imposed fines in accordance with the actual trading value of securities, the fine level shall double the fine level specified in Clause 2 of this Article.

6. For the act of failing to disclose information on transaction results; failing to disclose information when there is any change in the rate of stocks or fund certificates owned that exceeds 1% of the number of voting stocks or fund certificates; failing to disclose information when owning at least 5% of voting stocks of a public company, a public securities investment company or fund certificates of a closed-end fund or when no longer being the majority shareholder, or investor owning at least 5% of fund certificates of a closed-end fund or failing to disclose information before conducting transactions of stocks which are subject to transfer restriction – the fine level shall double the fine level specified in Clause 1, Clause 2 and Clause 4 of this Article.

7. Additional sanctions:

a) Suspension of securities trading for a definite time of between 01 month and 03 months for the act of failing to disclose information on planned transactions when conducting transactions with value from VND 5,000,000,000 to less than VND 10,000,000 stocks, the right to buy stocks, convertible bonds, the right to buy convertible bonds, fund certificates, the right to buy fund certificates or covered warrants based on securities of a public company, a public securities investment company, or a public fund;

b) Suspension of securities trading for a definite time of between 03 months and 05 months for the act of failing to disclose information on planned transactions when conducting transactions with value from VND 10,000,000,000 or more stocks, the right to buy stocks, convertible bonds, the right to buy convertible bonds, fund certificates, the right to buy fund certificates or covered warrants based on securities of a public company, a public securities investment company, or a public fund.

Article 34. Violations of regulations on trading and holding securities of investors

1. Suspension of securities trading of investors on the accounts that the investors lend to other for securities trading or to own securities on behalf of others leading to acts of stock market manipulation, for a definite time of between 06 months and 12 months. 

2. A fine of between VND 70,000,000 and VND 100,000,000 shall be imposed on any of the following acts of violation:

a) Violations of regulations on foreign holding rate;

b) Violations of regulations on the investment of foreign investors in the Vietnam securities market;

c) Violations of regulations on the holding rate of equity capitals, or capital contribution portions of a securities company, or a securities investment fund management company;

d) Violations of regulations on opening securities trading accounts, securities margin trading, and mandated trading accounts;

dd) Violations of regulations on during a trading day or in a periodic order matching.

3. A fine of between VND 100,000,000 and VND 150,000,000 shall be imposed on professional securities investors who transfer securities under private placement, violating regulations specified in Article 31 of the Law on Securities, law regulations on offering and trading of corporate bonds under private placement in the domestic market and offering corporate bonds to the international market.

4. A fine of between VND 400,000,000 and VND 500,000,000 shall be imposed on the act of performing one or a number of transactions to conceal information on the actual securities ownership in order to avoid or help other to avoid the obligation to disclose information in accordance with law provisions or the obligation to comply with regulations on public offerings or regulations on foreign holding rate in the Vietnam securities market.

5. Additional sanction:

Deprivation of the right to use the securities practice certificate for a definite time of between 18 months and 24 months for the acts of violation specified in Clause 4 of this Article.

6. Remedial measures:

a) Forcible surrendering of illegal benefits gained from committing acts of violation specified in Clause 1, Point a, Clause 2,  Clause 3 and Clause 4 of this Article;

b) Forcible sale of stocks or equity capitals or capital contributions in a maximum time limit of 60 days to cut down on the holding rate in accordance with law provisions, for the acts of violation specified at Point a and Point c, Clause 2 of this Article.

Article 35. Violations on using internal information for trading securities

1. For the act of using internal information for trading securities which is not subject to penal liability, the fine imposed shall be 10 times as much as the illegal benefit gained, but shall be no less than the maximum fine level which is prescribed in Clause 2, Article 5 of this Decree. In cases where there is no source of illegal benefit or the fine level calculated based on the illegal benefit is lower than the maximum fine level prescribed in Clause 2, Article 5 of this Decree, the maximum fine level prescribed in Clause 2, Article 5 of this Decree shall be applied for imposing fines.

2. Additional sanctions:

a) Suspension of operation of securities business and services for a definite time of between 01 month and 03 months for securities companies, securities investment fund management companies, Vietnam-based branches of foreign securities companies, securities investment fund management companies which commit acts of violation specified in Clause 1 of this Article;

b) Deprivation of the right to use the securities practice certificate for a definite time of between 18 months and 24 months for securities practitioners who commit acts of violation specified in Clause 1 of this Article.

3. Remedial measures:

Forcible surrendering of illegal revenues gained from committing acts of violation specified in Clause 1 of this Article.

Article 36. Violations on securities market manipulation

1. For the act of manipulating the securities market which is not subject to penal liability, the fine imposed shall be 10 times as much as the illegal benefit gained from it, but shall be no less than the maximum fine level which is prescribed in Clause 2, Article 5 of this Decree. In cases where there is no source of illegal benefit or the fine level calculated based on the illegal benefit is lower than the maximum fine level prescribed in Clause 2, Article 5 of this Decree, the maximum fine level prescribed in Clause 2, Article 5 of this Decree shall be applied for imposing fines.

2. Additional sanctions:

a) Suspension of operation of securities business and services for a definite time of between 01 month and 03 months for securities companies, securities investment fund management companies, Vietnam-based branches of foreign securities companies, securities investment fund management companies which commit acts of violation specified in Clause 1 of this Article;

b) Deprivation of the right to use the securities practice certificate for a definite time of between 18 months and 24 months for securities practitioners who commit acts of violation specified in Clause 1 of this Article.

3. Remedial measures:

Forcible surrendering of illegal revenues gained from committing acts of violation specified in Clause 1 of this Article.

 

Section 11

VIOLATIONS OF REGULATIONS ON SECURITIES REGISTRATION, DEPOSITORY, CLEARING AND SETTLEMENT, SUPERVISORY BANKS AND DEPOSITORY BANKS

 

Article 37. Violations of regulations on securities registration

1. A fine of between VND 50,000,000 and VND 70,000,000 shall be imposed on public companies failing to conduct securities registration or conduct securities registration at the Vietnam Securities Depository and Clearing Corporation within the prescribed time limit in accordance with law provisions.

2. A fine of between VND 70,000,000 and VND 100,000,000 shall be imposed on public companies violating regulations on exercising rights, conducting securities registration and depository at the Vietnam Securities Depository and Clearing Corporation.

Article 38. Violations of regulations on the registration for securities registration, depository, clearing and settlement activities

1. A fine of between VND 30,000,000 and VND 50,000,000 shall be imposed on securities companies, commercial banks, branches of foreign banks having been granted the depository registration certificate or the certificate of eligibility to provide clearing and settlement services but failing to conduct registration of depository members, clearing members and failing to conduct securities registration, depository, clearing and settlement activities within the prescribed time limit.

2. A fine of between VND 50,000,000 and VND 70,000,000 shall be imposed on securities companies, commercial banks, branches of foreign banks or branches of securities companies, commercial banks conducting securities depository, clearing and settlement activities when having yet to satisfy all conditions in accordance with law provisions; conducting securities depository, clearing and settlement activities when having yet to be granted the certificate of registration of securities depository activities, the decision allowing branches of securities companies, commercial banks to conduct securities depository activities, the certificate of eligibility to provide clearing and settlement services, and having yet to be approved by the Vietnam Securities Depository and Clearing Corporation to become a member.

3. A fine of between VND 400,000,000 and VND 500,000,000 shall be imposed on securities companies, commercial banks, branches of foreign banks preparing the application dossier for registration of securities depository, clearing and settlement activities which contains misleading or incorrect information or conceals the fact.

4. Additional sanctions:

Suspension of operation of securities depository, clearing and settlement activities for a definite time of between 01 month and 03 months for the acts of violation specified in Clause 3 of this Article in cases where securities companies, commercial banks, branches of foreign banks have been granted the certificate of registration of securities depository, clearing and settlement activities.  

5. Remedial measures:

Forcible cancellation or correction of information for the acts of violation specified in Clause 3 of this Article.

Article 39. Violations of regulations on securities registration, depository, clearing and settlement

1. A fine of between VND 50,000,000 and VND 70,000,000 shall be imposed on the Vietnam Securities Depository and Clearing Corporation, depository members, clearing members, payment banks which commit one of the following acts of violation:

a) Failing to provide the list of securities owners and related documents in a sufficient, timely and accurate manner, at the request valid and appropriate to the current law regulation of public companies, issuing institutions;

b) Failing to notify within the prescribed time limit or notifying in an insufficient manner - arising interests related to the securities depository of customers.

2. A fine of between VND 70,000,000 and VND 100,000,000 shall be imposed on the Vietnam Securities Depository and Clearing Corporation, depository members, clearing members which commit one of the following acts of violation:

a) Committing violations of regulations on storing and maintaining securities; Committing violations of regulations on securities registration, depository, clearing and settlement;

b) Being a clearing member who loses its ability to settle securities transactions or has its ownership temporarily suspended or terminated and fails to transfer deposited assets and trading positions of an investor to an alternative clearing member at the request of the investor; fails to conduct transaction to liquidate, or close positions at the request of the investor; fails to liquidate or close a position on a proprietary trading or market-making account; fails to ensure the priority in performing other investor’s transactions over its own position-closing/opening transactions.

3. A fine of between VND 100,000,000 and VND 150,000,000 shall be imposed on the Vietnam Securities Depository and Clearing Corporation, depository members, clearing members and a fine of between VND 50,000,000 and VND 75,000,000 shall be imposed on staff of depository members or staff of clearing members who commit one of the following acts of violation:

a) Failing to accurately and promptly record information about assets, property rights and interests related to customers’ assets given as deposits; making incorrect accounting on securities depository accounts, position accounts or margin accounts; failing to make settlement on schedule or failing to transfer the ownership of registered securities through the Vietnam Securities Depository and Clearing Corporation;

b) Conducting a securities transaction which has not been accounted by the Vietnam Securities Depository and Clearing Corporation into a member's securities trading account;

c) Failing to protect the database and store original documents related to securities registration, depository, clearing and settlement in accordance with law provisions;

d) Failing to ensure the confidentiality of information related to customers’ securities ownership;

dd) Failing to manage depository accounts, margin accounts including money and securities of customers at the Vietnam Securities Depository and Clearing Corporation, depository members, clearing members from the assets of the Vietnam Securities Depository and Clearing Corporation, depository members, clearing members; failing to open detailed depository accounts, margin accounts for each customer and manage assets, positions of each customer separately, or manage assets, positions of a customer separately from those of a clearing member

e) Failing to manage accounts, assets of clearing members separately from accounts, assets of the Vietnam Securities Depository and Clearing Corporation; failing to manage separately accounts, assets of each clearing member or failing to manage accounts, deposited assets each clearing member separately from those of its customers; failing to manage deposited assets, deposits for payment of derivative securities transactions separately from deposits for payment of underlying securities transactions;

g) Failing to collect enough deposited assets of customers to ensure payment obligations.

4. A fine of between VND 300,000,000 and VND 400,000,000 shall be imposed on the Vietnam Securities Depository and Clearing Corporation committing one of the following acts of violation:

a) Issuing the certificate for a depository member or the certificate for a clearing member without satisfying all conditions, or without being granted the securities depository registration certificate, the certificate of eligibility to provide securities clearing and payment services by the State Securities Commission; revoking the certificate for a depository member or the certificate for a clearing member in cases where the revocation of such certificates are not legally prescribed;

b) Making use of securities, deposited assets of customers for the sake of other individuals or organizations or for the sake of the Vietnam Securities Depository and Clearing Corporation itself.

5. A fine of between VND 400,000,000 and VND 500,000,000 shall be imposed on the Vietnam Securities Depository and Clearing Corporation, depository members, clearing members and A fine of between VND 200,000,000 and VND 250,000,000 shall be imposed on staff of depository members, clearing members who commit the act of amending or losing documents used in the settlement, transfer of securities ownership.

6. Additional sanctions:

a) Suspension of securities depository activities for a definite time of between 01 month and 03 months for depository members, clearing members committing acts of violation specified in Clause 5 of this Article.

b) Deprivation of the right to use the securities practice certificate for a definite time of between 01 month and 03 months for securities practitioners committing acts of violation specified Clause 3 and Clause 5 of this Article.

7. Remedial measures:

a) Forcible separate management of  depository accounts, margin accounts including money and securities of customers at the Vietnam Securities Depository and Clearing Corporation, depository members, clearing members from assets of the Vietnam Securities Depository and Clearing Corporation, depository members, clearing members; forcible opening of detailed depository accounts, margin accounts for each customer; forcible separate management of  assets and trading positions of each customer and of customers from clearing members for the acts of violation specified at Point dd, Clause 3 of this Article in a maximum time limit of 06 months from the date on which the decision on applying such measure takes effect;

b) Forcible separate management of accounts and assets of clearing members from  accounts and assets of the Vietnam Securities Depository and Clearing Corporation; forcible separate management of  accounts and assets of each clearing member; forcible separate management of  assets, deposited assets of each clearing member from those of  its customers; forcible separate management of  deposited assets, deposits for payment of derivative securities transactions from deposits for payment of underlying securities for the acts of violation specified at Point e, Clause 3 of this Article in a maximum time limit of 06 months from the date on which the decision on applying such measure takes effect.

Article 40. Violations of regulations on responsibilities of depository banks

1. A fine of between VND 50,000,000 and VND 70,000,000 shall be imposed on depository banks which commit one of the following acts of violation:

a) Failing to perform correctly and fully the obligations of a depository bank as prescribed in the securities depository contract, the Charter of the securities investment fund and in accordance with law provisions;

b) Failing to set up and store dossiers and documents as prescribed by law provisions; such dossiers and documents fail to reflect accurately and in details transactions of securities investment fund management companies, securities investment funds, entrusting investors, securities investment companies in accordance with law provisions;

c) Failing to provide information or failing to provide information in a sufficient and accurate manner for securities investment fund management companies;

d) Failing to ensure the minimum number of staff performing professional practices having appropriate diplomas or certificates in accordance with law provisions;

dd) Failing to establish the process of operation, risk management to fulfill obligations in accordance with law provisions.

2. A fine of between VND 70,000,000 and VND 100,000,000 shall be imposed on depository banks which commit one of the following acts of violation:

a) Failing to conduct the receipt, spending, settlement and transmission of money, securities accurately or within the prescribed time limit.

b) Failing to conduct the settlement for transactions in compliance with the Charter of the securities investment fund, the fiduciary contract and the securities depository contract;

c) Failing to implement in an accurate, sufficient and precise manner legitimate orders or directions of fund management companies, supervisory banks and rights arising in exercising the rights and performing obligations related to the asset ownership of securities investment funds, of securities investment companies and of entrusting investors within the scope of the securities depository contract, the supervisory contract and in accordance with relevant law provisions;

d) Failing to conduct in an accurate, sufficient and precise manner the liquidation of assets, the plan on handling with the remaining assets and the report to State Securities Commission on necessary information related to the liquidation of an investment fund.

3. A fine of between VND 150,000,000 and VND 200,000,000 shall be imposed on depository banks failing to conduct depository and separate management of assets of each investment fund, of securities investment company, of each entrusting customer from the assets of such bank in accordance with law provisions.

4. A fine of between VND 200,000,000 and VND 300,000,000 shall be imposed on depository banks using assets of securities investment funds, of securities investment companies, of entrusting customers not in accordance with law provisions.

5. Additional sanctions:

Suspension of depository activities for a definite time of between 01 month to 03 months for the acts of violation specified in Clause 3 and Clause 4 of this Article.

6. Remedial measures:

a) Forcible depository and separate management of assets of each investment fund, of securities investment companies, of each entrusting customer from such bank’s assets in accordance with law provisions for the acts of violation specified in Clause 3 of this Article in a maximum time limit of 06 months from the date on which the decision on applying such measure takes effect;

b) Forcible surrendering of illegal benefits gained from committing acts of violation specified in Clause 4 of this Article.

Article 41. Violations of regulations on responsibilities of supervisory banks

1. A fine of between VND 50,000,000 and VND 70,000,000 shall be imposed on supervisory banks which commit one of the following acts of violation:

a) Failing to perform correctly and fully the obligations of a supervisory bank as prescribed in the securities supervisory contract, the Charter of the securities investment fund and in accordance with law provisions;

b) Committing acts of violation specified at Points b, c, d and dd, Clause 1, Article 40 of this Decree.

2. A fine of between VND 70,000,000 to VND 100,000,000 shall be imposed on supervisory banks which commit one of the following acts of violation:

a) Being the affiliated person or person in charge of managing, administrating securities investment fund management companies or person with the ownership relation, person participating in capital contribution, stock holding, borrowing or lending with securities investment fund management companies, securities investment company and vice versa;

b) Being a trading partner in the asset trading transactions of public investment funds, of securities investment companies;

c) Failing to supervise the operation, investment restrictions of investment funds, securities investment companies implemented by fund management companies;

d) Failing to report within the prescribed time limit to the State Securities Commission when detecting violations of securities investment fund management companies, securities investment companies and relevant organizations and individuals;

dd) Failing to report within the prescribed time limit to the competent state agency on the supervisory bank, the Board of Directors’ members, leaders and professional staff of the supervisory bank in charge of supervising and preserving the assets of a public fund, a securities investment company being the affiliated persons or persons with the ownership relation, with borrowing or lending relation with securities fund management companies, securities investment companies and vice versa;

e) Failing to manage separately the operation, information technology system, reporting system among the division providing services for net asset value determination, the division implementing supervisory functions, the division in charge of setting up, storing and updating the Investor Register;

g) Failing to fulfill the responsibilities of the supervisory bank at reports related to the assets and operation of the investment funds prepared by a fund management company; confirming the report on assets of a public funds, assets of a securities investment company, the report on the determination of net asset value prepared by a fund management company or a securities investment company which contains false or misleading information.

 

Section 12

VIOLATIONS OF REGULATIONS ON INFORMATION DISCLOSURE AND REPORTING

 

Article 42. Violations of regulations on information disclosure

1. A warning shall be imposed on any of the following acts of violation:

a) Failing to conduct registration or re-registration for the persons in charge of disclosing information or authorized persons for disclosing information or failing to promulgate regulation on disclosing information

b) Failing to report to the State Securities Commission, the Vietnam Stock Exchange and subsidiaries on the website address and all changes related to such website address in accordance with law provisions.

2. A fine of between VND 10,000,000 and VND 30,000,000 shall be imposed on any of the following acts of violation:

a) Failing to fully comply with law regulations on the means and forms of information disclosures;

b) Failing to store disclosed information in accordance with law provisions.

3. A fine of between VND 50,000,000 and VND 70,000,000 shall be imposed on any of the following acts of violation:

a) Failing to disclose information within the prescribed time limit in accordance with law provisions or at the request of the State Securities Commission, the Vietnam Stock Exchange and subsidiaries as prescribed in Clause 3, Article 120, Clause 4, Article 123, Clause 3, Article 124 of the Law on Securities;

b) Failing to disclose information with sufficient contents in accordance with law provisions at the request of the State Securities Commission, the Vietnam Stock Exchange and subsidiaries as prescribed in Clause 3, Article 120, Clause 4, Article 123, Clause 3, Article 124 of the Law on Securities;

c) Disclosing private information without the consent of the owner.

4. A fine of between VND 70,000,000 and VND 100,000,000 shall be imposed on any of the following acts of violation:

a) Failing to disclose information which must be disclosed in accordance with law provisions or at the request of the State Securities Commission, the Vietnam Stock Exchange and subsidiaries as prescribed in Clause 3, Article 120, Clause 4, Article 123, Clause 3, Article 124 of the Law on Securities;

b) Failing to confirm or correct information or failing to confirm or correct information within the prescribed time limit in accordance with law provisions when there is any information affecting the securities price or when there is any request for the confirmation or correction of information of the State Securities Commission, the Vietnam Stock Exchange and subsidiaries as prescribed in Clause 3, Article 120, Clause 4, Article 123, Clause 3, Article 124 of the Law on Securities.

5. A fine of between VND 100,000,000 and VND 200,000,000 for the act of causing misinformation or disclosing inaccurate information or concealing information in securities activities.

6. Remedial measures:

Forcible cancellation or correction of information for the acts of violation specified in Clause 5 of this Article.

Article 43. Violations of regulations on reporting

1. A fine of between VND 10,000,000 and VND 30,000,000 shall be imposed on the act of failing to store disclosed information in accordance with law provisions.

2. A fine of between VND 50,000,000 and VND 70,000,000 shall be imposed on any of the following acts of violation:

a) Failing to report within the prescribed time limit in accordance with law provisions or at the request of  the State Securities Commission as prescribed in Clause 3, Article 120, Clause 4, Article 123, Clause 3, Article 124 of the Law on Securities;

b) Failing to report with sufficient contents in accordance with law provisions or at the request of the State Securities Commission as prescribed in Clause 3, Article 120, Clause 4, Article 123, Clause 3, Article 124 of the Law on Securities.

3. A fine of between VND 70,000,000 and VND 100,000,000 shall be imposed on any of the following acts of violation:

a) Failing to disclose information which must be disclosed in accordance with law provisions or at the request of the State Securities Commission as prescribed in Clause 3, Article 120, Clause 4, Article 123, Clause 3, Article 124 of the Law on Securities;

b) Making reports with inaccurate or misleading contents

4. Remedial measures:

Forcible reporting and provision of accurate information for the acts of violation specified at Point b, Clause 3 of this Article.

 

Section 13

VIOLATIONS OF REGULATIONS ON AUDITING PUBLIC COMPANIES, LISTED INSTITUTIONS, INSTITUTIONS OFFERING SECURITIES TO THE PUBLIC, SECURITIES COMPANIES, SECURITIES INVESTMENT COMPANY, FUNDS AND SECURITIES INVESTMENT FUND MANAGEMENT COMPANIES

 

Article 44. Violations of regulations on auditing a public company, listed institutions, institutions offering securities to the public, securities companies, securities investment company, funds and securities investment fund management companies

1. The fine level for accredited audit organizations which commit violations of regulations on reporting when there is a change in in its name, head office address, business lines or list of public accountants or a change making it no longer be eligible for being accredited for audit shall be as follows:

a) A warning shall be imposed when reporting such change to the State Securities Commission less than 15 days behind the prescribed time limit;

b) A fine of between VND 5,000,000 and VND 10,000,000 when reporting such change to the State Securities Commission 15 days or more behind the prescribed time limit;

c) A fine of between VND 10,000,000 and VND 20,000,000 when failing to report such change to the State Securities Commission in accordance with law provisions.

2. A fine of between VND 50,000,000 and VND 100,000,000 shall be imposed on any of the following acts of violation:

a) Failing to notify the audited unit when detecting any acts of failing to comply with law provisions and regulations related to the preparation, presentation of audited financial statements or failing to propose the audited unit to have measures for preventing, fixing and handling mistakes or failing to record opinion into the audited statements or the management letter as prescribed by the auditing standard in cases where the audited unit fails to fix, handle mistakes;

b) Failing to notify within the prescribed time limit the audited unit or any third person or the State Securities Commission when suspecting or detecting that the audited unit commit major mistakes because of failing to comply with law provisions and regulations related to audited financial statements;

c) Failing to provide explanation, information and figures related to the auditing activities or failing to provide explanation, information and figures related to the auditing activities in a timely, sufficient and accurate manner at the request of the State Securities Commission as prescribed in Clause 3, Article 21 of the Law on Securities.

3. A fine of between VND 100,000,000 and VND 150,000,000 shall be imposed on accredited audit organizations which deliver a part or the whole work of auditing public companies, listed institutions, institutions offering securities to the public, securities companies, securities investment companies, funds and securities investment fund management companies to an audit organization not eligible for doing so.

4. Remedial measures:

Forcible explanation or provision of information and figures related to the audit activities to the State Securities Commission for the acts of violation specified at Point c, Clause 2 of this Article in a maximum time limit of 10 days from the date on which the decision on applying such measure takes effect.

 

Section 14

VIOLATIONS OF REGULATIONS ON ANTI-MONEY LAUNDERING AND COUNTER-TERRORISM IN SECURITIES FIELD AND THE SECURITIES MARKET

 

Article 45. Violations of regulations on anti-money laundering and counter-terrorism in the securities field and the securities market

1. Securities companies, securities investment fund management companies which commit violations of regulations on customer identification and update of customer information shall be sanctioned as follows:

a) A fine of between VND 20,000,000 and VND 30,000,000 shall be imposed on the act of failing to update the customer identification information in accordance with provisions in Article 8, Article 9 and Article 10 of the Law on Anti-Money Laundering;

b) A fine of between VND 30,000,000 and VND 50,000,000 shall be imposed on the act of failing to apply measures to identify customers, measures of intensive assessment as prescribed in Clause 2, Clause 3 and Clause 4, Article 12 of the Law on Anti-Money Laundering, failing to report suspicious transactions in the securities field as prescribed in Clause 5, Article 22 of the Law on Anti-Money Laundering;

c) A fine of between VND 100,000,000 and VND 150,000,000 shall be imposed on the act of failing to have a risk management system to identify to identify foreign customers who are individuals with political influence as prescribed in Clause 2 and Clause 3, Article 13 of the Law on Anti-Money Laundering.

2. Securities companies, securities investment fund management companies which commit violations of regulations on internal auditing, reviewing customers for anti-money laundering shall be sanctioned as follows:

a) A fine of between VND 20,000,000 and VND 40,000,000 shall be imposed on the act of failing to review customers and involved parties in accordance with the warning list before establishing relations or providing services for such customers;

b) A fine of between VND 40,000,000 and VND 80,000,000 shall be imposed on the act of failing to competent state agency in accordance with law provisions when having customers and involved parties in the warning lists; failing to conduct internal audit on anti-money laundering in accordance with law provisions.

3. A fine of between VND 60,000,000 and VND 100,000,000 shall be imposed on securities companies, securities investment fund management companies committing any of the following acts of violating internal regulations on anti-money laundering as follows:

a) Failing to promulgate and comply with internal regulations on anti-money laundering;

b) Failing to develop regulations on classifying customers, failing to classify customers based on the risk levels of money laundering in accordance with law provisions; failing to promulgate the process for risk management in transactions related to new technologies in accordance with provisions in Article 15 of the Law on Anti-Money Laundering.

4. Securities companies, securities investment fund management companies which commit prohibited acts in anti-money laundering shall be sanctioned as follows:

a) A fine of between VND 30,000,000 and VND 60,000,000 shall be imposed on the act of causing obstructions in the provision of information for the prevention and combat of money laundering in accordance with provisions in Clause 6, Article 7 of the Law on Anti-Money Laundering;

b) A fine of between VND 50,000,000 and VND 100,000,000 shall be imposed on the act of failing to provide information for the prevention and combat of money laundering at the request of state competent agencies as prescribed in Clause 4, Article 18 of the Law on Anti-Money Laundering;

c) A fine of between VND 100,000,000 and VND 150,000,000 shall be imposed on the act of opening or maintaining anonymous accounts or accounts using false names as prescribed in Clause 2, Article 7 of the Law on Anti-Money Laundering;

d) A fine of between VND 200,000,000 and VND 250,000,000 shall be imposed on the act of organizing or participating in or facilitating the act of money laundering.

5. A fine of between VND 70,000,000 and VND 100,000,000 shall be imposed on the Vietnam Stock Exchange and subsidiaries failing to maintain and update basic information on organizational structures, founders and beneficial owners of listed enterprises as prescribed in Clause 1, Article 18 of the Law on Anti-Money Laundering.

6. Securities companies, securities investment fund management companies committing violations of regulations on the prevention and combat of terrorism financing shall be sanctioned as follows:

a) A fine of between VND 20,000,000 and VND 40,000,000 shall be imposed on the act of failing to apply measures to identify customers and update the customer identification information as prescribed in Article 34 of the Law on Counter-terrorism;

b) A fine of between VND 80,000,000 and VND 100,000,000 shall be imposed on the act of failing to denounce terrorism financing.

7. Additional sanctions:

Suspension of operation of securities business and services for a definite time of between 01 month and 03 months for the acts of violation specified at Point d, Clause 4 of this Article.

 

Section 15

VIOLATIONS OF REGULATIONS ON INSPECTION AND SUPERVISION OF COMPETENT STATE AGENCIES

 

Article 46. Acts of impeding the inspection, supervision, and request for the provision of information

1. A fine of between VND 50,000,000 and VND 100,000,000 shall be imposed on any of the following acts of violation:

a) Refusing to provide information, documents, electronic data or failing to provide information, documents, electronic data in a timely, sufficient and accurate manner at the request of the inspection, supervision delegation or competent persons;

b) Impeding, making difficulties or avoiding the inspection, supervision of competent persons; failing to provide explanation, failing to be present at the request of competent persons

c) Intentionally delaying, avoiding, failing to implement administrative decisions of competent persons; failing to implement requirements, recommendations, conclusions and decisions of the inspection, supervision delegation or competent persons.

2. A fine of between VND 70,000,000 and VND 150,000,000 shall be imposed on any of the following acts of violation:

a) Concealing, amending documents, materials, books, electronic data or changing material evidences when being subject to inspection and supervision;

b) Deliberately removing, dispersing or conducting other acts that change the seal status of money, securities, accounting books, records, documents or other sealed material evidences, means; appropriating and destructing documents and material evidences related to the inspection.

3. Additional sanctions:

a) Suspension of operation of securities business and services for a definite time of between 01 month and 03 months for securities companies, securities investment fund management companies, Vietnam-based branches of foreign securities companies, securities investment fund management companies which commit acts of violations specified in Clause 1 and Clause 2 of this Article;

b) Deprivation of the right to use the securities practice certificate for a definite time of between 01 month and 03 months for securities practitioners who commit acts of violations specified in Clause 1 and Clause 2 of this Article;

c) Confiscation of material evidences and means used in administrative violations which are documents, materials, books, electronic data for the acts of violation specified at Point a, Clause 2 of this Article.

 

Chappter III

COMPETENCE TO IMPOSE SANCTIONS, SETTING UP WRITTEN RECORDS OF ADMINISTRATIVE VIOLATIONS AND APPLYING ADDITIONAL SANCTIONS, REMEDIAL MEASURES

 

Article 47. Competence to impose sanctions on administrative violations

1. The Chief Inspector of the State Securities Commission, Heads of specialized inspection teams of the State Securities Commission shall have the following powers:

a) Imposing a warning;

 b) Imposing a fine of up to VND 100,000,000 for organizations and imposing a fine of up to VND 50,000,000 for individuals;

c) Depriving of the right to use the certificate for registration of operation of a representative office, the securities practice certificate as prescribed in Clause 5, Article 30 and Clause 3, Article 32 of this Decree;

d) Suspending securities trading transactions in accordance with provisions in Clause 1, Article 34 of this Decree;

dd) Applying additional sanctions and remedial measures specified in Clause 2 and Clause 3, Article 4 of this Decree.

2. The Chairperson of the State Securities Commission shall have the following powers:

a) Imposing a warning;

b) Imposing a fine of up to 10 times as much as the illegal benefit gained for organizations and imposing a fine of up to 05 times as much as the illegal benefit gained for individuals committing acts of violations specified in Clause 1, Article 35 and Clause 1, Article 36 of this Decree;

c) Imposing a fine of up to VND 3,000,000,000 for organizations and imposing a fine of up to VND 1,500,000,000 for individuals committing other acts of violations in the securities field;

d) Suspending securities trading transactions for a definite time of between 01 month and 12 months; depriving of the right to use the certificate for registration of operation of a representative office, the securities practice certificate for a definite time of between 01 month and 24 months;

dd) Applying additional sanctions and remedial measures prescribed in Clause 2 and Clause 3, Article 4 of this Decree.

4. Chairpersons of provincial-level People’s Committees shall have the following powers:

a) Imposing a warning;

b) Imposing a fine of up to 10 times as much as the illegal benefit gained for organizations and imposing a fine of up to 05 times as much as the illegal benefit gained for individuals committing acts of violations specified in Clause 1, Article 35 and Clause 1, Article 36 of this Decree;

c) Imposing a fine of up to VND 3,000,000,000 for organizations and imposing a fine of up to VND 1,500,000,000 for individuals committing other acts of violations in the field of securities;

d) Suspending securities trading transactions for a definite time of between 01 month and 12 months; depriving of the right to use the certificate for registration of operation of a representative office, the securities practice certificate for a definite time of between 01 month and 24 months;

dd) Applying additional sanctions and remedial measures prescribed in Clause 2 and Clause 3, Article 4 of this Decree.

Article 48. Competence to make written records of administrative violations

1. When detecting administrative violations in the fields of securities and securities market, persons holding positions specified in Article 47 of this Decree shall have the power to make written records of administrative violations in accordance with law provisions.

2. When detecting acts of administrative violations specified in this Decree, public servants in the financial sector who are on duty; public servants, public employees and competent persons who are on duty in accordance with legal documents or administrative documents issued by competent agencies or persons must promptly make written records of administrative violations in accordance with law provisions and transfer such records of administrative violations to competent persons in imposing sanctions for sanctioning.

Article 49. Applying the suspension of operation of securities business and services

1. When applying the additional sanctions of suspension of operation of securities business and services as specified Point a, Clause 2, Article 20, Point a, Clause 7, Article 24, Point a, Clause 7, Article 26, Point b, Clause 6, Article 27, Point a, Clause 2, Article 35, Point a, Clause 2, Article 36, Clause 7, Article 45, and Point a, Clause 3, Article 46 of this Decree, competent persons specified in Article 47 of this Decree shall have the power to issue the decision on suspending one, several or all securities business and service operations of the violating organization for a definite time.

2. In cases of only issuing the decision on suspending one, several securities business and service operations, the competent persons as specified in Article 47 of this Decree must clearly state in the decision on imposing sanctions the securities business and service operations to be suspended and the time duration of suspension.

3. In cases of suspending securities business and service operations for a definite time, the violating organization must immediately suspend a part or the whole of its securities business and service operations or other activities as stated in the decision on imposing sanctions and must comply with regulation on prohibitions and restrictions during the time of suspension.

Article 50. Applying the suspension of securities depository, clearing and settlement activities

When applying the additional sanction of suspending securities depository, clearing and settlement activities as prescribed in Clause 4, Article 38, Point a, Clause 6, Article 39, Clause 5, Article 40 of this Decree, competent persons specified in Article 47 of this Decree shall have the power to issue the decision on suspending one, several or all securities depository, clearing and settlement activities of the violating organization. The decision on applying the suspension of securities depository, clearing and settlement activities must be concurrently sent to the Vietnam Securities Depository and Clearing Corporation.

Article 51. Applying remedial measures

1. Within 03 working days from the date on which the decision on applying the remedial measure of forcible cancellation or correction of information is received, the violating organizations and individuals must publicly announce the cancellation or correction of such information on 03 consecutive volumes of 01 centrally-run newspaper and on their websites. The violating organizations and individuals when conduct the cancellation or correction of information must concurrently report to the State Securities Commission, the Vietnam Stock Exchange and subsidiaries on the cancelled or corrected information.

2. The maximum time limit for applying the measure of forcible surrendering of illegal profits or illegal revenues gained from committing acts of violations shall be 60 days from the date on which the decision on applying such measure takes effect

3. The maximum time limit for applying remedial measures specified in Clause 3, Article 4 of this Decree shall be 30 days from the date on which the decision on applying such remedial measures takes effect, except for cases prescribed at Points a, b, dd and e, Clause 9, Article 8; Point c, Clause 9, Article 8 in cases where it is compulsory to gain approval in the earliest General Meeting of Shareholders; Points a and b, Clause 5, Article 9, Points a, b and c, Clause 8, Article 10, Points b and c, Clause 6, Article 12, Point d, Clause 6, Article 17, Point a, Clause 7, Article 18, Clause 8, Article 26, Clause 7, Article 27, Point b, Clause 8, Article 32, Point b, Clause 6, Article 34, Clause 7, Article 39, Point a, Clause 6, Article 40, Clause 4, Article 44, Clause 1 and Clause 2 Article 51 of this Decree.

4. The revocation of offered or issued securities; the refund to investors the money used for buying securities or deposits (if any) plus interests gained from buying securities or the deposit as prescribed at Points a, dd, e, Clause 9, Article 8, Points a, b, Clause 5, Article 9, Point a, Clause 8, Article 10, Points b and c, Clause 6, Article 12 of this Decree shall be conducted as follows:

a) Within 03 working days from the date on which the decision on imposing sanctions for administrative violations or the decision on applying remedial measures is received, the violating organizations and individuals must send a written notification and at the same time, publicly announce on 03 consecutive volumes of 01 centrally-run newspaper and on their websites - the refund to investors the money used for buying securities or deposits (if any) plus interests calculated according to the interest rate on demand deposit of the bank where the violating organizations and individuals open accounts to collect money for buying securities or deposits. The interest amount from the money to buy securities or from the deposits that the violating organizations and individuals must pay investors shall be calculated from the date on which the investors pay the money to the date on which the violating organizations and individuals refund such money to the investors. In cases where the investors have legitimately transferred the purchased securities in the above offering, the violating organizations and individuals must identify investors who have received the transfer before the time of notifying on money refund and the number of securities that they are currently holding to notify the investors;

b) The violating organizations and individuals must report to the State Securities Commission on the result of the refund to investors the money used for buying securities or deposits (if any) within 03 working days from the date on which such organizations and individuals complete the refund for investors.

5. The measure of forcible surrendering of securities or money owned by customers for the acts of violation specified in Clause 8, Article 26, Point b, Clause 8, Article 32 of this Decree shall be conducted as follows:

a) In cases of applying the measure of forcible refund of money to customers for acts of violations specified in Clause 8, Article 26, Point b, Clause 8, Article 32 of this Decree, the violating organizations and individuals must refund to customers the entire amount of money on the customers' accounts that was made use of, appropriated, detained, lent or used not in accordance with law provisions plus the interests calculated according to the interest rate on demand deposit of the commercial bank where the customers open their accounts at the time when the decision on applying such measure takes effect. The amount of interest that violating organizations and individuals must pay to customers shall be calculated from the date on which the money on customers' accounts is misused, appropriated, detained, lent or used not in accordance with law provisions to the date on which the violating organizations and individuals refund such money to customers;

b) In cases of applying the measure of forcible surrendering of securities for customers for acts of violations prescribed in Clause 8, Article 26, Point b, Clause 8, Article 32 of this Decree, the violating organizations and individuals must refund to customers the amount of securities

that was made use of, appropriated, detained, lent or used not in accordance with law provisions plus the securities and the money arising from the amount of securities having been made use of, appropriated, detained, lent or used not in accordance with law provisions (if any) during the time of being made use of, appropriated, detained, lent or used not in accordance with law provisions.

 

Chapter IV

IMPLEMENTATION PROVISIONS

 

Article 52. Effect

1. This Decree shall take effect from January 01, 2021.

2. The Government’s Decree No. 108/2013/ND-CP, dated September 23, 2013 promulgating administrative penalties for violations in securities and securities market and the Government’s Decree No. 145/2016/ND-CP dated November 01, 2016 amending and supplementing a number of articles of the Government’s Decree No. 108/2013/ND-CP, dated September 23, 2013 promulgating administrative penalties for violations in securities and securities market shall cease to be effective from the date on which this Decree takes effect.

Article 53. Transitional provisions

1. For violations which are committed before the date on which this Decree takes effect but are detected or considered for handling decision later, the provisions of such Decree shall be applied if this Decree does not provide for liability or impose lighter liability.

2. For decisions on handling of administrative violations which have been issued before the date on which this Decree takes effect, and which sanctioned individuals and organizations still appeal, provisions prescribed in the Law on Handling of Administrative violations, the Government’s Decree No. 108/2013/ND-CP, dated September 23, 2013 promulgating administrative penalties for violations in securities and securities market and the Government’s Decree No. 145/2016/ND-CP dated November 01, 2016 amending and supplementing a number of articles of the Government’s Decree No. 108/2013/ND-CP shall be used for settlement of appeal.

Article 54. Implementation responsibilities

1. The Minister of Finance shall be responsible for providing guidance on the method to calculate illegal benefits and revenues gained from committing acts of violation specified in this Decree and organizing the implementation of this Decree.

2. The Minister of Finance, Ministers, Heads of ministerial-level agencies, Heads of governmental agencies, Chairpersons of provincial and municipal People’s Committees shall be responsible for implementing this Decree.

 

For the Government

Prime Minister

Nguyen Xuan Phuc