What is this behavior like? How will be individuals and organizations manipulate the stock market handle? When will they be held criminally responsible? Then, to learn more about this issue, Lawyer X would like to introduce the article “How is stock market manipulation handled?″. So, we invite you to read along.
Legal grounds
– Decree 156/2020/ND-CP
– Penal Code 2015 amended and supplemented in 2017
What is stock market manipulation?
According to Clause 2, Article 3 of Decree 156/2020/ND-CP, stock market manipulation is the performance of prohibited acts in securities and securities market activities, including one, some, or all of the following behaviors:
Buy, sell, perform securities transactions
– Using one or more trading accounts of one’s own or another’s or colluding to continuously buy and sell securities to create artificial supply and demand;
– Then, placing buy and sell orders for the same securities on the same trading day or colluding with each other to buy and sell securities without leading to the actual transfer of ownership or ownership rights only circulating between members in the group. groups to create securities prices, artificial supply and demand;
– Continually buying or selling securities with a dominant volume at the opening or closing of the market to create a new closing or opening price for that security in the market.
– Besides, trading securities in the form of collusion, enticing other people to continuously place buy and sell orders of securities, greatly affecting supply and demand and stock prices, manipulating securities prices;
Through information affecting the stock market
– Giving opinions directly or indirectly through the mass media about a type of security or the issuer of a security to influence the price of that security after the transaction has been made. trade and hold positions for such securities;
– Using methods or performing other transactions or combining to spread false rumors, provide false information to the public to create artificial supply and demand, and manipulate securities prices.
How is stock market manipulation handled?
Manipulating the stock market is one of the prohibited acts in securities and securities market activities. And for this behavior, how are individuals and groups punished?
About criminal
Individuals and commercial legal entities that have acts of manipulating the stock market may be prosecuted for criminal liability for the crime of manipulating the securities market as specified in Article 211 of the Penal Code. Specifically:
Individuals committing crimes
– The person who commits one of the acts specified above; gains illicit profits from 500,000,000 VND to less than 1,500,000,000 VND, or causes damage to the investor from 1,000,000,000 VND to less than 3,000,000,000 VND; shall fine from VND 500,000,000 to VND 2,000,000,000; or imprisonment from 06 months to 03 years.
Committing the crime in one of the following circumstances, the offenders shall be subject to a fine of between VND 2,000,000,000 and 4,000,000,000 or a prison term of between 2 and 07 years:
+ Organized;
+ Gaining illicit profits of VND 1,500,000,000 or more;
+ Causing damage to investors 3,000,000,000 VND or more;
+ Dangerous recidivism.
The offenders may also be subject to a fine of between VND 50,000,000 and 250,000,000, a ban from holding certain posts, practicing certain professions, or doing certain jobs for one to five years.
Commercial legal entity
Penalize a commercial legal entity that commits a crime as follows:
– Committing the crime in the cases specified in Clause 1, Article 211 of the Penal Code, the offenders shall be subject to a fine of from VND 2,000,000,000 to VND 5,000,000,000;
– Besides, committing the crime in the cases specified in Clause 2, Article 211 of the Penal Code, the offenders shall be subject to a fine of between VND 5,000,000,000 and VND 10,000,000,000;
– Committing the crime in the cases specified in Article 79 of the Penal Code, receive the penalty of permanent suspension;
Commercial legal entities may also be subject to a fine ranging from VND 500,000,000 to VND 2,000,000,000; business ban; banned from operating in certain fields from 01 to 03 years; or banned from raising capital from 01 to 03 years.
Administrative sanctions
In case there are violations but not enough elements to handle penal liability. Then, violators/organizations will administratively sanction according to Decree 156/2020/ND-CP.
The level of sanction for this behavior is specified in Article 36 of Decree 156/2020/ND-CP; (amended by clause 30, Article 1 of Decree 128/2021/ND-CP). Specifically:
– Monetary fine:
A fine of 10 times the illegal revenue but not less than 3,000,000,000 VND for the organization; 1,500,000,000 VND for individuals;
In case there is no illegal revenue, or the fine based on illegal revenue is less than 3,000,000,000 VND for the organization; lower than VND 1,500,000,000 for individuals, a fine of VND 3,000,000,000 will apply to organizations; 1,500,000,000 VND for individuals.
– Additional sanction:
+ Suspend securities business and service activities for a period of from 01 months to 03 months for securities companies, securities investment fund management companies, branches of securities companies, or fund management companies. Foreigners in Vietnam commit violations;
+ Deprivation of the right to use securities practice certificates for a period of between 18 months and 24 months for securities practitioners who commit violations.
– Remedial measures:
Forcible return of illegal revenues obtained from committing violations.
Please see more
What types of businesses can issue securities in Vietnam?
Conditions for foreign investors to establish securities companies
Frequently asked questions
Securities are evidence that confirms the legal ownership of that owner with the assets or capital of the issuing company or organization. Besides, securities can be in the form of certificates, journal entries, or electronic data.
The 2012 Law on Handling of Administrative Violations stipulates:
“Article 74. Statute of limitations for implementing decisions on sanctioning of administrative violations
1. The statute of limitations for the execution of a decision sanctioning an administrative violation is 01 year from the date of issuance of the decision. Past this time limit, the execution of such a decision shall no longer be carried out, unless the sanctioning decision has a sanctioning form. If confiscation of material evidence and means of administrative violations, applying remedial measures, must still confiscate material evidence and means banned from circulation, apply remedial measures when necessary to prevent administrative violations. environmental protection, traffic assurance, construction, and social order and security.
2. In case the sanctioned individual or organization intentionally evades or delays, the above-mentioned statute of limitations shall be counted from the time of termination of the act of evading or delaying.”
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