Strengthen supervision to prevent violations in the securities sector

VCN- According to Mr. Tran Van Dung, Chairman of the State Securities Commission (SSC), in 2018, the State Securities Commission will focus on developing the Law on Securities (revised) in order to create a complete regulation system on supervision management, inspections and handling of violations, in order to meet the requirements of development and management of the stock market, reduce risks to the market and law violations.
tang cuong giam sat de ngan chan vi pham trong linh vuc chung khoan Nearly 660 foreign investors receive trading codes in January
tang cuong giam sat de ngan chan vi pham trong linh vuc chung khoan New securities law aims to clarify procedures
tang cuong giam sat de ngan chan vi pham trong linh vuc chung khoan Revised Law on securities waits for changes in nature
tang cuong giam sat de ngan chan vi pham trong linh vuc chung khoan
Vietnam stock market had a strong year with a high growth rate.

Many stock manipulation cases "come to light"

Vietnam stock market has developed strongly with the highest growth rate in Asia. With the strong development of the stock market, the SSC has made great efforts in the direction and management of the stock market, especially the inspections and handling of violations to ensure safe and healthy operation for the strength of the market.

The SSC has issued many sanctioning decisions in the field of securities, including individuals who are business leaders or have a relationship with the Board.

Accordingly, with the behavior of manipulating stock prices, another individual who was fined up to VND 600 million by the State Securities was Ms. Tran Thi Minh Phuong (living in Pleiku, Gia Lai). From 20 July 2015 to 1 April 2016, Ms. Phuong used 42 accounts, of which 3 were in her name and 39 were in other securities companies to exchange HNG shares of Hoang Anh Gia Lai International Agriculture Joint Stock Company, aiming to create an artificial supply and demand scenario for manipulating HNG shares.

Notably, recently, the SSC sanctioned Ms. Do Thi Cam Thuy (former Chairman of the Spilit Company - SPI) amounting to nearly VND 10 billion for acts of creating artificial supply and demand, manipulating SPI shares. Ms. Thuy opened a securities account and asked 15 individuals to open 28 securities accounts at four securities companies. During the period from 1 September 2015 to 13 May 2016, these 29 accounts were continuously traded, creating artificial supply and demand, manipulating SPI shares.

According to the results of the Investigation Agency on 28 November 2017, due to insufficient grounds to prosecute Ms. Thuy under Article 181c of the Penal Code 1999 (securities offenses), the SSC released an administrative fine of nearly VND 10 billion, including a fine of VND 600 million for SPI stock manipulation and forced remedial action; forcing Ms. Thuy to return the illegal gains of more than VND 9.28 billion due to the offense. Thus, the total amount she must pay is VND 9,881 billion.

It can be said that this is the largest administrative penalty ever, the penalty is considered as the record for the form of opening multiple accounts to manipulate stock prices, but the number is not large in comparison with the value affected by the manipulative behaviors.

Obviously, in recent times, there have been many cases of serious violations in the securities sector (at a high level), but the number of cases of criminal cases is not high. According to Mr. Tran Van Dung, the inspection and clarification of violations by manipulation are still difficult because the SSC does not have the competence to request agencies, subjects and individuals to provide information (cash flow, information related to the suspected offenders).

However, the SSC has actively sought solutions and remedies through strengthening cooperation with relevant authorities, actively coordinating with police agencies to investigate, verify and clarify violations. Thanks to timely solutions and appropriate measures, the State Securities Commission has resolutely dealt with many "hot" cases in the market (high sanctioning of 6 individuals who manipulated the stock market).

Continue to monitor abnormal signs in the market

In order to ensure the safe and healthy operation of the market, according to Mr. Tran Van Dung, in 2018, the SSC will focus on developing the Securities Law (revised) in order to create a complete regulatory system on governance to supervise, inspect and handle violations in order to meet development requirements and management requirements of the securities market; reduce risks to the market and limit violations of law.

With regard to the inspections and handling of violations on the stock market, the SSC will propose to supplement the authority to collect information for management agencies in fighting, preventing violations and crimes. This will create favorable conditions for coordination activities between the SSC and the authorities in charge of the concerned branches and fields and with the management agency of the foreign securities market. In addition, the SSC is proposing to amend regulations on prohibited behavior and sanctions for violations in accordance with the provisions of the Penal Code 2015 and the Law on handling administrative violations.

In addition, the SSC will deploy regular inspection missions of public companies, securities companies, fund management companies and auditing companies. Subjects selected for periodical inspection shall also ensure compliance with the inspections, avoid overlapping and ensure compliance with management and supervision requirements for the securities market.

Besides, the SSC will continue to monitor emerging market issues, abnormalities in its operations and specialized inspections to coordinate with competent agencies in handling law violations.

tang cuong giam sat de ngan chan vi pham trong linh vuc chung khoan Stock market targets safe growth

The Government and the State Securities Commission plan to carry out some key measures to develop the ...

Regarding the handling of violations, the SSC will focus on dealing with emerging issues, cases of signs of manipulation, internal transactions, signs of criminal violation to create deterrence, protection of rights and interests.. But more importantly, besides the efforts of State management agencies and market operators, there is a need for awareness and effective contributions from the members of the stock market who play an important role in contributing to ensuring the market is secure and transparent.

By Huong Giang/ Hoang Anh

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