The securities market is a capital mobilization channel, in which the activities of participating entities include offering, listing, trading (buying, selling), trading, investing in securities, and providing securities services. Accordingly, the violations of the subjects also arise directly from non-compliance with corresponding regulations during the implementation of these activities. So according to current law, what are the prohibited acts in securities?
1. Rules for securities activities
Entities participating in securities and securities market activities need to comply with the following principles, according to the provisions of the Securities Law 2019:
– Respect of ownership and other rights to assets in securities activities; freedom to trade, invest and provide information about securities of organizations and individuals.
– Fairness, openness, transparency.
– Protection of investors’ the lawful rights and interests.
– Accept risks.
Actions that do not comply with or have a negative impact on ensuring the above principles are considered violations and are considered strictly prohibited in securities.
2. Prohibited acts in securities
Prohibited acts in securities include:
– Direct or indirect commission of frauds, forgery of documents, provision or disclosure of false information to conceal true information or omit necessary information in a manner that causes misunderstanding, adversely affects the offering, listing, trading, investment of securities and provision of securities-related services.
– Use of internal information to buy or sell securities to oneself or another person; revelation or provision of internal information; advising another person to buy or sell securities based on internal information.
– Use of one or several accounts of oneself or another person, trading securities in a manner that creates artificial demand or supply; collaborating with another person in trading securities to manipulate securities prices; use of other methods, with or without false information, to manipulate securities prices.
– Engaging in securities trade or provision of securities-related services without a license, certification or approval from SSC.
– Use of a client’s account or asset without the client’s authorization or against the law; abuse of trust to appropriate a client’s assets.
– Allowing another person to borrow the account to trade securities, hold securities in the name of another person for the purpose of manipulating securities prices.
– Organizing the securities market against regulations of Securities Law.
>> USING INTERNAL INFORMATION FOR TRADING SECURITIES, WHAT ARE THE SANCTIONS? https://linconlaw.vn/using-internal-information-for-trading-securities-what-are-the-sanctions/
>> REGISTRATION ON CHANGE OF LEGAL REPRESENTATIVE OF JOINT STOCK COMPANY https://linconlaw.vn/registration-on-change-of-legal-representative-of-joint-stock-company/
3. Sanctions on subjects who commit prohibited acts in securities
Violations in securities and securities market activities, depending on the behavior and severity, may be subject to administrative sanctions or criminal prosecution. Subjects subject to sanctions include both individuals and legal entities.
- Securities Law 2019;
- Criminal Code 2015;
- Decree 156/2020/ND-CP regulating penalties for administrative violations in the field of securities and securities market issued on December 31, 2020;
- Decree 128/2021/ND-CP amending Decree 156/2020/ND-CP regulating penalties for administrative violations in the field of securities and securities market issued on December 30, 2021.
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