ANTD.VN - APG Securities Joint Stock Company was fined a total of nearly 1.5 billion VND due to a series of violations in the field of securities and the securities market.
The State Securities Commission (SSC) has just issued a Decision on administrative sanctions for violations in the field of securities and the securities market against APG Securities Joint Stock Company (APG).
Accordingly, the total fine imposed on this securities company is up to nearly 1.5 billion VND for many violations in the field of securities and the securities market.
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APG Securities was heavily fined |
Specifically, APG was fined VND125 million for violating regulations on investment restrictions of securities companies. According to the conclusion of the State Securities Commission, as of June 30, 2024, APG invested up to 16% of its equity in Kosy Joint Stock Company.
APG Securities is also said to have violated regulations on lending restrictions and was fined VND187.5 million. The State Securities Commission said that during the period from January 1, 2024 to September 12, 2024, APG used a number of the company's deposit contracts to sign mortgage contracts with credit institutions to ensure the performance of obligations of other organizations and signed stock purchase contracts with individuals.
This securities company was also fined a similar amount for failing to manage the assets of clients separately from the assets of the securities company. Specifically, APG made a number of money transfer transactions between the Company's dedicated accounts and payment accounts on January 19, 2024, January 26, 2024 and February 2, 2024 with the content of lending for margin trading and paying for lending for margin trading.
APG was also fined VND275 million for coordinating with a credit institution to provide services to customers to borrow money to buy securities (starting from October 2023) without the approval of the State Securities Commission and was fined VND137.5 million for allowing some customers at some point in 2024 to place orders to buy securities when they did not have enough money in their securities trading accounts.
In addition, APG used capital not in accordance with the capital use plan from the private share offering approved by the General Meeting of Shareholders on April 15, 2023 and approved by the Board of Directors on October 30, 2023 and the capital use plan from the private share offering registered and reported to the State Securities Commission.
For this violation, APG received an additional fine of VND175 million. At the same time, the State Securities Commission forced APG to recall the securities it had offered and issued; refund investors the money they had purchased the securities or the deposit (if any) plus interest accrued from the money they had purchased the securities or the deposit within 15 days from the date of receiving the investor's request.
The deadline for investors to submit a request is a maximum of 60 days from the effective date of the decision to apply this measure. Interest arising from securities purchase money or deposits is calculated according to the interest rate of non-term deposits of the bank where APG violates and opens an account to receive securities purchase money or deposits.
At some point in 2024, APG also disbursed margin trading loans that exceeded the purchasing power of some customers' margin trading accounts, and was fined VND137.5 million.
Not only that, this securities company was also fined VND 175 million for falsely reporting the available capital ratio in the financial safety ratio reports as of March 31, 2024 and June 30, 2024. APG is required to report accurate information for the violation of reporting with false content according to regulations.
Finally, APG was fined VND92.5 million for failing to keep complete records, data, documents, and certificates related to the securities company's operations. The company failed to provide complete and detailed documents and certificates reflecting long-term investments in unlisted stocks as of January 1, 2024 and in the period from January 1, 2024 to September 12, 2024; failed to provide complete deposit contracts for purchasing shares, bonds, and documents related to long-term investments in the period from May 10, 2024 to September 12, 2024.
Notably, this is not the first time APG Securities has been fined this year. Less than half a year ago, the company was fined VND500 million and banned from trading for four months for failing to report its planned stock trading.
APG Securities continuously receives heavy "fines" in the context of not very positive business activities.
APG's financial report shows that the company suffered a loss in the fourth quarter of 2024, with a loss of more than VND50 billion, including a heavy loss in its self-trading activities. Previously, the company also lost VND148 billion in the third quarter of 2024. For the whole year, APG lost VND136 billion, failing to achieve its target of VND239 billion in profit for the year.
In early December 2024, APG announced the closure of its Ho Chi Minh City branch and Transaction Office 132 Mai Hac De (Hanoi). After closing the above two branches, APG will only operate at its headquarters located in Hoa Ma (Hai Ba Trung District, Hanoi).
Source: https://www.anninhthudo.vn/chung-khoan-apg-lo-dam-nhan-an-phat-nang-ngay-truoc-tet-post602181.antd
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