Legalizing 6 acts of stock market manipulation

(Dan Tri) - Using one or more trading accounts to buy and sell securities; continuously buying and selling with a controlling volume at the opening/closing time of the market... are acts of stock market manipulation.

These are the contents stipulated in 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, which was just passed by the National Assembly on the afternoon of November 29. This law takes effect from January 1, 2025. The law stipulates 6 acts of stock market manipulation, including:

National Assembly deputies press the button to pass the Law (Photo: Hong Phong).

1. Using one or more of one's own or other people's trading accounts or colluding to continuously buy and sell securities to create artificial supply and demand; 2. 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 rotating between group members to create fake stock prices and supply and demand; 3. Continuously buying or selling securities with a dominant volume at the time of opening or closing the market to manipulate stock prices; 4. Trading securities by colluding with or enticing others to continuously place buy and sell orders for securities, causing a major impact on supply and demand and stock prices, manipulating stock prices; 5. Giving opinions directly or indirectly through the media about a type of security or a securities issuing organization to influence the price of that type of security after having made a transaction and held a position in that type of security; 6. 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 manipulating stock prices". According to the Law on Independent Auditing, Article 60 stipulates that organizations and individuals who violate the provisions of this law will, depending on the nature and severity of the violation, be subject to administrative sanctions, criminal prosecution, and State management measures. If causing damage, the violating organization or individual must compensate. The maximum fine for administrative violations in the field of independent auditing is 2 billion VND for organizations and 1 billion VND for individuals. The Government will detail the handling of administrative violations in the field of independent auditing.

Chairman of the Finance and Budget Committee Le Quang Manh (Photo: Hong Phong).

Chairman of the Finance and Budget Committee Le Quang Manh said that there were opinions suggesting clarifying the basis for administrative fines to ensure deterrence. In addition, there were opinions suggesting that the maximum fine should only be doubled compared to the current level and the maximum penalty period should be 2 years, due to the lack of demand for auditing personnel compared to the market size. Presenting the viewpoint of the National Assembly Standing Committee, Mr. Manh said that the above fine is the maximum and only applies to some serious violations of auditing standards, not to the extent of 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 the recent past, 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.

Dantri.com.vn

Source: https://dantri.com.vn/xa-hoi/luat-hoa-6-hanh-vi-thao-tung-thi-truong-chung-khoan-20241129151554829.htm