04 SECURITIES VIOLATIONS CAN INCUR CRIMINAL LIABILITY?

Violations in securities activities and the securities market nowadays are increasingly complex and sophisticated, along with the development of the securities market as an attractive capital mobilization channel. In addition to administrative sanctions, securities violations can be prosecuted for criminal liability.

1. Penalties applied for securities violations

a. For individuals committing crimes:

– Primary sentences:

+ Fine;

+ Determinate imprisonment;

– Additional sentences:

+ Prohibition from holding certain positions or doing certain works;

+ Fine if no administrative penalties are imposed;

Noted, the offender shall incur only one primary sentence for a crime committed and possibly one or more additional sentences

b. For organizations committing crimes:

– Primary sentences:

+ Fine;

+ Suspension of operation;

+ Permanent shutdown.

– Additional sentences:

+ Ban from operating in certain fields;

+ Prohibition from raising capital;

+ Fine if no administrative penalties are imposed.

Noted, the corporate legal entity shall incur only one primary sentence for a criminal offence committed and possibly one or more additional sentences.

2. Securities crimes and sentences

The following violations can be identified as crimes in the securities sector and corresponding sentences are applied:

a. Provision of false information or concealment of information in securities activities

For individuals, the applicable fine ranges from VND 100 million to VND 02 billion. In addition, offenders may also be fined from VND 50 million to VND 200 million, banned from holding positions, practicing certain occupations or doing certain jobs for 01 to 05 years.

For commercial legal entities, the fine ranges from VND 500 million to VND 05 billion. In addition, legal entities may also be banned from doing business, operating in certain fields or from raising capital from 01 year to 03 years.

b. Use of internal information for trading securities

For individuals, the applicable fine is from VND 500 million to VND 05 billion or imprisonment from 06 months to 07 years. In addition, offenders may also be fined from VND 50 million to VND 200 million, banned from holding positions, practicing certain occupations or doing certain jobs for 01 to 05 years.

For commercial legal entities, the fine ranges from VND 01 billion to VND 10 billion. In addition, legal entities may also be banned from doing business, operating in certain fields or from raising capital from 01 year to 03 years.

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c. Manipulation of securities market

For individuals, the applicable fine ranges from VND 500 million to VND 04 billion or imprisonment from 06 months to 07 years. In addition, the offender may also be fined from VND 50 to VND 250 million, banned from holding certain positions, practicing certain professions or doing certain jobs from 01 year to 05 years.

For commercial legal entities, the fine ranges from VND 02 billion to VND 10 billion; permanently suspend operations. In addition, legal entities may also be fined VND 500 million to VND 02 billion, banned from doing business, banned from operating in certain fields from 01 year to 03 years or banned from raising capital from 01 year to 03 years.

d. Forging documents in offering or listing profile

Offenders can be fined from VND 500 million to VND 5 billion or imprisoned from 6 months to 7 years. In addition, offenders may also be fined from VND 50 million to VND 250 million, banned from holding positions, practicing certain professions or doing certain jobs for 01 to 05 years.