What to do when invited to play securities in Vietnam but lost everything?

“Hello Lawyer, the day before I went to a class meeting, I met an old friend. My friend is now very rich and in good shape. When I saw that, I also started a conversation to learn how to do business. My friend invited me to play the stock market, As of now, it’s thanks to the boom in the stock market; but the salary is only enough to support my family every month. Then, he invited me to join a group to play something in the stock market. Because I’m not familiar with it, I only invested 50 million. I can’t contact my friend when it’s time to get the profit, that group has also been removed from the group What should I do? What to do when invited to play securities in Vietnam but lost everything?. I would like to sincerely thank Mr. Lawyer.”

Groups that go “chicken” can use confidential information “inside information” to buy and sell securities or “spread false rumors” to manipulate stock prices. These are all prohibited acts under Article 12 of the Securities Law 2019. Today, LSX Lawfirm will give you an article about “What to do when invited to play securities in Vietnam but lost everything?”, as follows:

What are securities?

Securities are an asset (specifical security is a valuable paper), which is evidence confirming the lawful ownership of the owner of the securities with the assets or capital portion of the company or organization that has issued it. onion.

So Securities are long-term valuable documents or journal entries certifying the owners’ legitimate rights and interests in the capital or assets of the issuing organization. Securities are commodities of the stock market. Valuable securities are an expression of pseudo-capital, which in itself has no independent value, and are paper copies of real capital. Valuable securities bring income to the owner, so they are also subject to purchase and sale and have a price. Usually, on securities with a price, the owner’s name is not listed, so it can be freely transferred from one person to another without the need for the transferor’s signature. In the history of the development of the stock market, securities were initially printed on paper; but gradually presented in an intangible form through accounting records by electronic means.

In addition

Security is a financial product that can be traded on a market.

Then Security is a valuable financial instrument that can be bought, sold, and held like money.

And Securities are certifications, book-entry, or electronic data showing the rights and interests of ownership of assets; or shares of capital for joint-stock companies.

Securities that represent an ownership relationship with the company (referred to as shares) represent a creditor relationship (bonds, etc.); hybrid securities (convertible bonds, preferred shares), or other securities. option type.

What types of securities are included?

Securities include the following types:

• Shares are securities that confirm the lawful rights and interests of the owner to a portion of the share capital of the issuing organization.
• A bond is a type of security that confirms the lawful rights and interests of the owner to a portion of the debt of the issuer.
• Fund certificates are securities that confirm an investor’s ownership of a portion of capital contributed by a securities investment fund.
• Warrants are securities issued in conjunction with the issuance of a bond or preferred stock, granting the holder the right to purchase a certain number of common shares at a predetermined price within a specified period of time. determined time.
• Covered warrants are securities with secured assets issue by a securities company, allowing the holder the right to buy (call warrants); or sell (sell warrants) the underlying securities with the organization. the issuer of that covered warrant at a predetermined price, at or before a specified date, or receive the difference between the strike price and the underlying security’s price at that date. perform.
• The right to buy shares is a type of security issue by a joint-stock company to give existing shareholders the right to buy new shares under defined conditions.
• Other types of securities regulated by the Government.

What to do when invited to play stock but lost everything?

This group of people can fine from 100 to 150 million dongs for providing private information to some shareholders or investors; provide information to shareholders and investors at different levels or at the same time according to Article 17 of Decree 156/2020.

Using inside information to trade securities can result in a penalty of 10 times the illegal revenue. In the case of securities manipulation, the “chicken-trading” group also faces a fine equal to 10 times the illegal revenue, up to a maximum of VND 1.5 billion for individuals or VND 3 billion for organizations.

In addition, Articles 210 and 211 of the Penal Code provide for fines; imprisonment from 6 months to 7 years for those who use inside information to buy and sell securities or manipulate securities.

How is stock market manipulation sanctioned?

Individuals who perform acts of manipulating the stock market; if causing serious consequences, may prosecute for “Stock market manipulation”; as specified in Article 211 of the Penal Code 2015 as amended and supplemented in 2017.

According to Article 211 of this Code:

Those who perform one of the acts of “manipulating the stock market” and gain illicit profits from 500 million VND to less than 1.5 billion VND; or cause damage to investors from VND 1 billion to less than VND 3 billion, will prosecute for criminal liability for manipulating the securities market.

Accordingly, the penalties applied to this Crime are specifically as follows:

Main penalty

– Penalty frame 1: A fine of between VND 500 million and VND 02 billion; or sentenced to between 06 months and 03 years of imprisonment if they commit one of the above acts but:

Gaining illicit profits from VND 500 million to under VND 1.5 billion, or

Causing damage to investors from VND 01 billion to less than VND 03 billion.

– Penalty frame 2: A fine of between VND 2 and 4 billion; or sentenced to between 02 years and 07 years of imprisonment in one of the following cases:

• Firstly, Organizing;
• Secondly, Gaining illegal profits of 1.5 billion VND or more;
• Thirdly, Causing damage to investors VND 03 billion or more;
• Finally, Dangerous recidivism.

Additional penalty

– fined from 50 to 250 million VND;

– Ban from holding certain posts, practicing certain professions, or doing certain jobs for 1 to 5 years.

Consulting service of LSX Lawfirm

Above is LSX Lawfirm’s advice on the content of the problem “What to do when invited to play securities in Vietnam but lost everything?“. And all the above knowledge to use in work and life. If you have any questions and need more advice and help, please contact the hotline for the reception. Lawyer X is a place that provides reputable and fast business services at reasonable prices. Customers will be extremely satisfied when using our services.

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