Is the disclosure of false information in securities activities subject to criminal prosecution?

In securities activities, information disclosure must ensure that activities in the securities market are transparent, objective, protect the interests of investors, and compete fairly... Therefore, any act aimed at disclosing false information or concealing the truth in all securities activities can lead to negative consequences, causing serious damage to the interests of individuals, related organizations and the entire economy of the country in the activities of the capital and financial markets in general, and the securities market in particular; these are illegal acts and may constitute the crime of intentionally disclosing false information or concealing the truth in securities activities.

Organizations and individuals who disclose false information in securities activities according to Article 209 of the 2015 Penal Code (amended in 2017) will be prosecuted for the crime of intentionally disclosing false information or concealing information in securities activities with the following penalties:

For individuals:

* Frame 1:Fine from 100,000,000 VND to 500,000,000 VND, non-custodial reform up to 02 years or imprisonment from 03 months to 02 years when:

Any person who intentionally discloses false information in the activities of offering, listing, trading, securities business, market organization, registration, depository, clearing or payment of securities in one of the following cases:

- Causing damage to investors from VND 1,000,000,000 to under VND 3,000,000,000;

- Illegal profits from 500,000,000 VND to under 1,000,000,000 VND;

- Having been administratively sanctioned for the act of disclosing false information in securities activities or having been convicted of this crime, not having had the criminal record cleared, and still committing the violation.

* Frame 2:Fine from 500,000,000 VND to 2,000,000,000 VND or imprisonment from 01 year to 05 years if committing a crime in one of the following cases:

(i) Organized;

(ii) Illegal profits of VND 1,000,000,000 or more;

(iii) Causing damage to investors of VND 3,000,000,000 or more;

(iv) Dangerous recidivism.

In addition, the offender may also be fined from VND 50,000,000 to VND 200,000,000, banned from holding positions, practicing a profession or doing certain jobs from 01 to 05 years.

For commercial legal entities:

Specifically, in Clause 4, Article 209 of the 2015 Penal Code (amended in 2017), a commercial legal entity that publishes false information in securities activities shall be punished as follows:

- Committing a crime under the provisions of frame 1 for individuals shall be subject to a fine from VND 500,000,000 to VND 2,000,000,000;

- Committing a crime under the provisions of frame 2 for individuals shall be subject to a fine from VND 2,000,000,000 to VND 5,000,000,000;

- Commercial legal entities may also be banned from doing business, banned from operating in certain fields or banned from raising capital from 01 to 03 years.