The Law amending and supplementing a number of articles of 9 laws, including the Securities Law, sets out 6 groups of behaviors considered to be stock market manipulation.
On the afternoon of November 29, with the majority of delegates present in agreement, the National Assembly passed the Law amending and supplementing a number of articles of 9 laws (Securities; Accounting; Independent Audit; State Budget; Management and Use of Public Assets; Tax Management; Personal Income Tax; National Reserves; Handling of Administrative Violations). The Law takes effect from January 1, 2025.
Under the Securities Law, 6 groups of acts of stock market manipulation are strictly prohibited, including:
Using one or more of one's own or another person's trading accounts or colluding to continuously buy and sell securities to create artificial supply and demand.
Placing buy and sell orders for the same type of securities on the same trading day or colluding with each other to buy and sell securities without actually transferring ownership or ownership only circulating among group members to create fake stock prices and supply and demand.
Continuously buying or selling securities in dominant volume at market opening or closing times to manipulate stock prices.
Trading securities by colluding and enticing others to continuously place orders to buy and sell securities, greatly affecting supply and demand and securities prices, and manipulating securities prices.
Giving opinions directly or indirectly through the media about a type of security or the organization issuing the security in order to influence the price of that type of security after having made a transaction and held a position in that type of security.
Using methods or performing other trading acts or combining spreading false rumors, providing false information to the public to create artificial supply and demand, and manipulate stock prices.
According to the Law on Independent Auditing, organizations and individuals who violate the provisions of this law, depending on the nature and severity of the violation, will be subject to administrative sanctions, criminal prosecution, and State management measures.
If damage is caused, the violating organization or individual must compensate according to the provisions of the law. The maximum fine for administrative violations in the field of independent auditing is 2 billion VND for organizations; 1 billion VND for individuals. The statute of limitations for handling administrative violations in the field of independent auditing is 5 years.
The Government will detail the handling of administrative violations in the field of independent auditing.
Discussing this issue, some delegates suggested clarifying the basis for administrative penalties to ensure deterrence. Some suggested increasing the maximum penalty to twice the current level and the maximum penalty period to two years due to the lack of audit staff compared to the market size.
Explaining before passing the law, Chairman of the National Assembly's Finance and Budget Committee Le Quang Manh said that the above fine is the maximum and only applies to some serious violations of auditing standards that do not warrant criminal prosecution.
Therefore, it is possible to consider regulations such as the draft law submitted to the National Assembly for approval to ensure deterrence for auditing enterprises and auditors, especially in recent times, when there have been a number of cases where auditing enterprises and auditors have seriously violated professional standards and professional ethics.
The National Assembly Standing Committee requested the Government to review, assess specific impacts and impose appropriate penalties for each act as suggested by National Assembly deputies during the process of finalizing the draft guiding decree.
Proposal to buy and sell evidence, assets are real estate, securities
Source: https://vietnamnet.vn/6-nhom-hanh-vi-bi-coi-la-thao-tung-thi-truong-chung-khoan-2346940.html
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