Sanctions will be increased on insiders illegally buying and selling stocks.

The draft Law amending 7 Laws, including the Securities Law, will no longer legalize violations of reporting and disclosure obligations of insiders and related persons, but will be "stronger" in applying sanctions.

The draft Law amending 7 Laws, including the Securities Law, will no longer legalize violations of reporting and disclosure obligations of insiders and related persons, but will be "stronger" in applying sanctions.

This morning (November 7), the National Assembly discussed in the Hall the Draft Law on amending and supplementing a number of articles of the Securities Law; Accounting Law; Independent Audit Law; State Budget Law; Law on Management and Use of Public Assets; Tax Management Law; Law on National Reserves. The Ministry of Finance has reported on receiving and explaining the opinions of the Ministry's discussion groups of National Assembly deputies on this draft law.

In the report on receiving and explaining the group's discussion opinions, the Ministry of Finance said that it plans to report to the Government and the Prime Minister for consideration and decision in the direction of receiving and not adding regulations on the behavior of "insiders of public companies, public securities investment companies, public funds and related persons of these entities not disclosing information about expected transactions of shares and public fund certificates before the transaction" to the prohibited behaviors.

At the same time, the drafting agency will strengthen sanctions against this behavior by increasing additional sanctions for the above behavior in the Decree on administrative sanctions for violations in the securities sector that is currently being amended and supplemented.

"The Ministry of Finance accepts and will supplement measures and sanctions in the Decree on administrative sanctions for violations in the securities sector, which is currently being revised and supplemented, to ensure compatibility with the additional prohibited acts in the Draft Law," the drafting agency emphasized.

Previously, at the group discussion session, delegates Nguyen Nhu So (Bac Ninh) and Truong Trong Nghia (HCMC) said that the addition of Clause 6a on prohibited acts for insiders of public companies and related persons of these entities not to disclose information as in the Draft Law is not appropriate. At the same time, opinions suggested that if the Draft Law supplements and amends the prohibitions, it is necessary to review and supplement the decrees on administrative sanctions for compatibility.

In fact, the illegal trading of shares by insiders is being monitored more closely and quickly than before. Most recently, on November 1, the Ho Chi Minh City Stock Exchange (HoSE) eliminated the sale of 2.61 million shares of a bank because the investor (related to the bank's leader) did not disclose information or report before the transaction. The cancellation was carried out immediately on the trading system, and the securities and money were returned to the buyer and seller.

Penalties such as suspension of trading for individuals who violate the law have also been applied in many cases. In July 2024, the State Securities Commission issued a decision to impose administrative penalties on Mr. Ho Anh Tuan, Member of the Board of Directors and General Director of Ho Chi Minh City Foreign Trade and Investment Development Joint Stock Company (code FDC-HoSE); Mr. Le Thai Thanh, Member of the Board of Directors and Ms. Le Ngan Nhi, related person of Mr. Le Thai Thanh, Member of the Board of Directors with a total fine of VND 740 million.

In the first half of June 2024, General Director Ho Anh Tuan bought 1.85 million FDC shares; Ms. Le Ngan Nhi, a relative of Mr. Le Thai Thanh, a member of the Board of Directors of FDC, bought 1.35 million FDC shares; Mr. Le Thai Thanh, a member of the Board of Directors, also bought 906,271 FDC shares. All three individuals did not report on the expected transaction.

In addition to the large administrative fine, Mr. Tuan and Ms. Nhi were suspended from securities trading activities for 4 months according to the provisions of Point b, Clause 7, Article 33 of Decree No. 156/2020/ND-CP.

Source: https://baodautu.vn/se-tang-cuong-che-tai-voi-nguoi-noi-bo-mua-ban-chui-co-phieu-d229421.html