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

The draft law amending seven laws, including the Securities Law, will no longer legalize violations of reporting and disclosure obligations regarding transactions by insiders and related parties, but will apply stricter sanctions.

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

The draft law amending seven laws, including the Securities Law, will no longer legalize violations of reporting and disclosure obligations regarding transactions by insiders and related parties, but will apply stricter sanctions.

This morning (November 7th), the National Assembly discussed in the plenary session the draft laws amending and supplementing several articles of the Securities Law; the Accounting Law; the Independent Auditing Law; the State Budget Law; the Law on Management and Use of Public Assets; the Tax Management Law; and the National Reserve Law. The Ministry of Finance presented a report on the acceptance and explanation of the opinions discussed by the Ministry's working groups and National Assembly deputies regarding these draft laws.

In its report on the acceptance and explanation of the group discussion's opinions, the Ministry of Finance stated that it plans to report to the Government and the Prime Minister for consideration and decision, adopting the approach of not adding the regulation on the act of "insiders of public companies, public securities investment companies, public funds and related parties of these entities failing to disclose information about planned transactions of shares and public fund certificates before the transaction" to the list of prohibited acts.

At the same time, the drafting agency will strengthen sanctions for this behavior by increasing additional penalties for the above-mentioned act in the Decree on administrative sanctions in the securities sector, which is currently being amended and supplemented.

"The Ministry of Finance has taken note of the feedback and will add measures and penalties to the Decree on administrative sanctions in the securities sector, which is currently being amended and supplemented, to ensure compatibility with the additional prohibited acts in the Draft Law," the drafting agency emphasized.

Earlier, during the group discussion session, delegates Nguyen Nhu So (Bac Ninh) and Truong Trong Nghia (Ho Chi Minh City) argued that the addition of Clause 6a, regarding prohibited acts for insiders of public companies and their related parties, such as failing to disclose information, as stipulated in the Draft Law, was inappropriate. They also suggested that if the Draft Law amends or supplements the prohibited acts, the relevant decrees on administrative penalties should be reviewed and updated accordingly.

In fact, insider trading activities are being monitored more closely and quickly than before. Most recently, on November 1st, the Ho Chi Minh City Stock Exchange (HoSE) canceled a transaction involving the sale of 2.61 million shares of a bank because the investor (related to the bank's leadership) failed to disclose information and report the transaction beforehand. The cancellation was immediately implemented on the trading system, and the securities and money were returned to both the buyer and the seller.

Penalties such as trading suspensions for violating individuals 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 (FDC-HoSE); Mr. Le Thai Thanh, Member of the Board of Directors; and Ms. Le Ngan Nhi, a related party of Mr. Le Thai Thanh, Member of the Board of Directors, with a total fine of 740 million VND.

In the first half of June 2024, General Director Ho Anh Tuan purchased 1.85 million FDC shares; Ms. Le Ngan Nhi, a related party of Mr. Le Thai Thanh, a member of the FDC Board of Directors, purchased 1.35 million FDC shares; and Mr. Le Thai Thanh, a member of the Board of Directors, also purchased 906,271 FDC shares. None of the three individuals reported their planned transactions.

In addition to the large administrative fine, Mr. Tuan and Ms. Nhi were suspended from securities trading for 4 months in accordance with 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