Amend the law and strictly punish acts of securities fraud and deception.

Ms. Vu Thi Chan Phuong - Chairperson of the State Securities Commission

Today, October 8th, the State Securities Commission (SSC) held a workshop to gather feedback on the proposed amendments and additions to the Securities Law.

According to the committee, the event aims to "raise awareness, responsibility, and mobilize the intellectual contributions of relevant agencies, organizations, and entities participating in the securities market in the development of legal policies."

Enhance transparency, severely punish fraud, and clearly define responsibilities.

At the event, a representative from the State Securities Commission stated that after more than three years of implementation, the 2019 Securities Law and its implementing regulations have created a relatively complete, synchronized, and unified legal framework. This has contributed to many positive results.

However, with the rapid development of the market, some shortcomings and difficulties have arisen in the practical implementation of the law. These need to be considered and promptly amended, supplemented, and improved.

This aims to promptly address limitations and risks, further enhance the effectiveness and efficiency of state management, and at the same time create favorable conditions for businesses to raise capital to serve production and business development.

Accordingly, the amended and supplemented Securities Law focuses on three basic issues. First, it relates to regulations aimed at enhancing transparency and efficiency in the issuance and offering of securities.

Next, finalize regulations to strengthen supervision and strictly handle fraudulent and deceptive acts in securities issuance and offering activities, clearly defining the responsibilities of relevant organizations and individuals, and ensuring effective prevention and handling of violations in the securities market.

Simultaneously, amendments and additions will be made to a set of regulations to address practical obstacles and promote market development with the goal of upgrading the stock market's ranking.

Specifically, this involves perfecting the legal framework to enable the clearing and settlement of securities transactions on the market under the central counterparty clearing (CCP) mechanism in the Vietnamese securities market.

Sentenced to prison for stock market manipulation.

Recently, a series of stock market manipulation cases have been exposed and prosecuted. This contributes to increasing deterrence and limiting market manipulation.

For example, in August 2024, the Hanoi City Police Investigation Agency prosecuted seven people for manipulating CMS shares of CMH Vietnam Group. This group was led by Tran Binh Minh (born in 1982). Besides using multiple securities accounts to buy and sell CMS shares, the group also used accounts on Zalo and Telegram to promote and influence the decisions of other investors.

The State Securities Commission determined that the group made a profit of over 10 billion VND from the sale, with Mr. Minh personally earning 5.5 billion VND (excluding taxes and fees).

Notably, in the market, Tran Binh Minh self-proclaims himself as a "master" with 18 years of practical stock market investment experience, having founded numerous financial and real estate investment channels with over 1 million followers.

Previously, investors witnessed two shocking cases, in which many people paid the price for their wrongdoing.

First, there was the case of Mr. Trinh Van Quyet, former chairman of the board of directors of FLC Group, who was sentenced by the first-instance court to a total of 21 years in prison for manipulating the stock market and defrauding and appropriating assets.

He also dragged his two sisters, Trinh Thi Minh Hue (an accounting officer at FLC Group) and Trinh Thi Thuy Nga (deputy general director of BOS Securities Company), into the case, receiving sentences of 14 years and 8 years in prison respectively.

In addition to criminal liability, the first-instance court ordered the former chairman of FLC Group, along with Ms. Trinh Thi Minh Hue, to compensate investors more than 1,700 billion VND.

Meanwhile, at the appeals trial, the panel of judges sentenced defendant Do Thanh Nhan, former chairman of Louis Holdings, to 4 years in prison. Defendant Nhan and defendant Do Duc Nam, general director of Tri Viet Securities Company, conspired to manipulate the stock prices of BII and TGG. From this, the group illegally profited more than 154 billion VND.

In this context, amending and supplementing the Securities Law in a stricter direction will contribute to better protecting investors and businesses.

Source: https://tuoitre.vn/sua-doi-luat-xu-ly-nghiem-hanh-vi-gian-lan-va-lua-dao-chung-khoan-20241008123601717.htm