How will using inside information to buy and sell securities be prosecuted?

Organizations and individuals who disclose false information in securities activities according to Article 210 of the 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:

1. For individuals:

* Frame 1: Fine from VND 100,000,000 to VND 500,000,000, reform without detention 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 VND 500,000,000 to VND 2,000,000,000 or imprisonment from 01 year to 05 years if committing a crime in one of the following cases:

- Organized;

- Illegal profits of VND 1,000,000,000 or more;

- Causing damage to investors of VND 3,000,000,000 or more;

- 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.

2. For commercial legal entities:

- 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.

The act of using inside information to buy or sell securities will be prosecuted if all of the following elements are met: Knowing information related to a public company or public fund that has not been announced and, if announced, could significantly affect the price of securities of that public company or public fund, and using this information to buy or sell securities or disclosing, providing this information or advising others to buy or sell securities on the basis of this information; Illegally profiting from VND 300,000,000 or more or causing damage to investors from VND 500,000,000 or more.

In cases where the act has been prosecuted for criminal liability for the crime of using inside information to buy and sell securities, there will no longer be administrative sanctions for this act.

PL