The Ministry of Finance and Security Commission has drastically handled cases of manipulating securities

VCN – The Ministry of Finance has informed about the development of the stock market in recent times as well as the issue of securities companies which both manage accounts, give advice and invest in stocks.
According to the Ministry of Finance, legal regulations on the supervision of irregular transactions and handling of manipulative transactions have been fully promulgated. Source: Internet
According to the Ministry of Finance, legal regulations on the supervision of irregular transactions and handling of manipulative transactions have been fully promulgated. Source: Internet

In terms of stocks, the information about the issue relating the plummet of the stock market which caused damage for F0 investors, leading to a loss of trust in the stock market. One of the reasons is the lack of transparency and equality. The Ministry of Finance said that Vietnam's stock market in 2021 and the first months of 2022 would develop stably, affirming the role as an important medium and long-term capital mobilization channel for the Government and businesses.

However, recently, Vietnam's stock market has been affected by negative developments in the country and overseas such as the increase in interest rates in the US, the trade war between countries, the geopolitical situation, and the sharp increase in oil prices, as well as fluctuations in the international financial - monetary market.

Besides the positive side of the stock market, based on the supervision, the State Securities Commission (SSC) found that there were listed and registered stocks with strong fluctuations in trading volume and prices. In particular, there are some fluctuations showing unusual signs. A number of newspapers, magazines, and websites have also reported on the price increase of some stock tickers on the stock market.

According to the Ministry of Finance, legal regulations on the supervision of irregular transactions and handling of manipulative transactions have been fully promulgated. The supervision of the stock market was previously divided into two levels. Accordingly, the Stock Exchange was the supervisor of line 1 which was responsible for monitoring signs of abnormal transactions, reporting to the State Securities Commission, and the State Securities Commission was in charge of supervisory line 2.

From the Law on Securities 2019, the supervision of transactions on the stock market has been upgraded to 3-level supervision, thereby supplementing a supervisory line of a securities company besides the supervision of the Stock Exchange and the State Securities Commission.

Recently, under the direction of the Ministry of Finance, the State Securities Commission has drastically implemented the supervision, inspection and handling of cases of stock market manipulation.

Typically, the State Securities Commission has recommended and warned investors when participating in securities groups, is continuing to strengthen supervision and information processing in cyberspace, and coordinates with relevant competent authorities to detect and strictly handle individuals and organizations that violate the provisions of the Law on Securities (in the case of Dang Nhu Quynh, who posted inaccurate information on his personal Facebook page, negatively affecting the stock market in April, 2022).

Along with that, the State Securities Commission would strengthen supervision and strictly handle organizations and individuals that violate regulations on transactions and information disclosure, especially trading activities and information disclosure of major shareholders, founding shareholders, business leadership (specifically, the case of Trinh Van Quyet was prosecuted for the act of "Manipulating the stock market", "Hiding information in securities activities" in March 2022).

Besides that, strengthening the control of securities companies’ activities, especially lending activities using financial leverage; strictly handling securities companies involved in stock market manipulation (the case of "stock market manipulation" occurred at Tri Viet Securities Joint Stock Company, Louis Holdings Joint Stock Company in April 2022).

Regarding the issue of reporting on the phenomenon of securities companies that both manage accounts, consult and freely invest in securities, the Ministry of Finance said, regarding international practices, securities companies are allowed to operate self-trading, securities issuance guarantee, securities brokerage and securities investment consulting.

Furthermore, Clause 1, Article 72 of the Law on Securities stipulates that a securities company is licensed to conduct one, several or all securities business operations, including self-trading, securities issuance guarantee, securities brokerage and securities investment consulting.

Regarding the prevention of conflicts of interest, the Ministry of Finance said that during its operation, a securities company that is licensed to operate self-trading activities, manage customer accounts and advise on securities investment may have conflicts of interest between securities companies and customers.

Therefore, in order to prevent this, the Law on Securities (Article 89) and guiding documents (Circular No. 121/2020/TT-BTC of the Minister of Finance regulating securities company activities) have stipulated restrictions on conflicts of interest between customers and securities companies (Articles 4, 13, 22). Accordingly, securities companies are obliged to prioritize interests and protect customer assets.

Regarding management and supervision, the State Securities Commission conducts regular and continuous monitoring through reports or on-site inspections of the activities of securities companies to ensure that securities companies comply with the law.

By Hoài Anh/Thanh Thuy

Related News

Transparency evates the standing of listed companies

Transparency evates the standing of listed companies

VCN - According to the Hanoi Stock Exchange (HNX), the number of companies placed under warning, control, or restricted trading on the listed and registered markets has increased over the past two years compared to 2022.
Diversify and innovate securities products to attract foreign investors

Diversify and innovate securities products to attract foreign investors

VCN - Mr. Kojima Kazunobu, Chief Advisor of the Japan International Cooperation Agency (JICA), said that Vietnam needs to make more efforts in developing the stock market in both quality and quantity to become a potential market, attractive to foreign investors.
Important step to soon upgrade stock market

Important step to soon upgrade stock market

VCN - According to experts, the Ministry of Finance's issuance of Circular No. 68/2024/TT-BTC dated September 18, 2024 is an important step in the process towards the goal of improving the quality of the Vietnam’s stock market.
Curbing stock market manipulation

Curbing stock market manipulation

VCN - Amending and supplementing a number of articles of the Law on Securities is necessary to ensure that the securities market operates more transparently and effectively, to ensure the rights of investors, to prevent fraudulent behavior, and to create conditions for the development of the securities market.

Latest News

Monetary policy forecast unlikely to loosen further

Monetary policy forecast unlikely to loosen further

It will be difficult for the State Bank of Vietnam (SBV) to further loosen monetary policy due to a rising USD/VNĐ exchange rate pressure, experts said.
World Bank outlines path for Vietnam to reach high income status

World Bank outlines path for Vietnam to reach high income status

The World Bank (WB) has released a report which explores how Vietnam can upgrade its participation in global value chains to become a high-income country by 2045.
Strictly control public debt and ensure national financial security  2025

Strictly control public debt and ensure national financial security 2025

VCN – In order to achieve goal of strictly managing public debt and maintaining security and safety of the national financial system in 2025, it is necessary to ensure the borrowings and repayments of public debts is within the approved estimate; closely monitor public debt indicators to ensure that they are within the ceiling and warning thresholds approved by the National Assembly.
Revising the title of a draft of 1 Law amending seven finance-related laws

Revising the title of a draft of 1 Law amending seven finance-related laws

VCN - On November 19, 2024, the Standing Committee of the National Assembly (SCNA) discussed amendments and refinements to the draft of a law revising seven existing finance-related laws. Concluding the session, Vice Chairman of the National Assembly Nguyen Duc Hai emphasized the need for the Government to direct the drafting body and relevant agencies to collaborate closely to finalize a persuasive and widely supported report, ensuring the quality of the draft law for the National Assembly's consideration and decision.

More News

State-owned securities company trails competitors

State-owned securities company trails competitors

Contrary to the outstanding performances in the banking sector, the securities subsidiaries of major banks have yet to fully leverage their potential, despite numerous inherent advantages.
Strengthening the financial “health” of state-owned enterprises

Strengthening the financial “health” of state-owned enterprises

VCN - The state economy plays a key role in the socio-economic development process, but it is necessary to strengthen the financial health and competitiveness of state-owned enterprises (SOEs).
U.S. Treasury continues to affirm Vietnam does not manipulate currency

U.S. Treasury continues to affirm Vietnam does not manipulate currency

VCN - In its latest report, the U.S. Department of the Treasury has positively assessed Vietnam's monetary policy, reaffirming that Vietnam does not engage in currency manipulation.
Exchange rate fluctuations bring huge profits to many banks

Exchange rate fluctuations bring huge profits to many banks

Net profits from the foreign exchange trading segment of many banks have gained positive results thanks to a strong USD/VNĐ exchange rate fluctuations this year.
A “picture” of bank profits in the first nine months of 2024

A “picture” of bank profits in the first nine months of 2024

VCN - Pre-tax profits for banks during the first nine months of 2024 remained positive, exceeding 200 trillion VND, solidifying the sector's position as a market leader.
Many challenges in restructuring public finance

Many challenges in restructuring public finance

VCN - Restructuring public finance is an important step to improve state financial management, ensure resources are allocated reasonably and effectively, contributing to the country's sustainable development. In addition to the achieved results, the process of accelerating public finance restructuring also faces many pressures.
Tax declaration and payment by e-commerce platforms reduces declaration points and compliance costs

Tax declaration and payment by e-commerce platforms reduces declaration points and compliance costs

VCN - E-commerce platforms that declare and pay taxes on behalf of traders not only help to reduce the number of tax declaration points but also reduce the cost of compliance with administrative procedures for the whole society because only one point as the e-commerce trading platform implements tax deduction, payment and declaration on behalf of tens, hundreds of thousands of individuals and business households on the platform.
Disbursement of public investment must be accelerated: Deputy PM

Disbursement of public investment must be accelerated: Deputy PM

Deputy Prime Minister Ho Duc Phoc has called on ministries, agencies, and localities to accelerate the disbursement of public investment from now until the year-end and further tighten investment management.
HCMC: Domestic revenue rises, revenue from import-export activities begins to increase

HCMC: Domestic revenue rises, revenue from import-export activities begins to increase

VCN - The results of State budget revenue in HCMC in the first 10 months of 2024 are estimated to increase by 10% over the same period last year, of which the highlight is that revenue from import-export activities has begun to increase.
Read More

Your care

Latest Most read
Monetary policy forecast unlikely to loosen further

Monetary policy forecast unlikely to loosen further

It will be difficult for the State Bank of Vietnam (SBV) to further loosen monetary policy due to a rising USD/VNĐ exchange rate pressure, experts said.
World Bank outlines path for Vietnam to reach high income status

World Bank outlines path for Vietnam to reach high income status

The World Bank (WB) has released a report which explores how Vietnam can upgrade its participation in global value chains to become a high-income country by 2045.
Strictly control public debt and ensure national financial security  2025

Strictly control public debt and ensure national financial security 2025

VCN - According to the plan for borrowing and repaying public debt and foreign debt of the country in 2025, the total borrowing demand of the Government in the year is expected to be at VND 815,238 billion, an increase of 20.6% compared to the Government'
Revising the title of a draft of 1 Law amending seven finance-related laws

Revising the title of a draft of 1 Law amending seven finance-related laws

On November 19, 2024, the Standing Committee of the National Assembly (SCNA) discussed amendments and refinements to the draft of a law revising seven existing finance-related laws.
Transparency evates the standing of listed companies

Transparency evates the standing of listed companies

According to the Hanoi Stock Exchange (HNX), the number of companies placed under warning, control, or restricted trading on the listed and registered markets has increased over the past two years compared to 2022.
Mobile Version