Recently, it is not difficult to see articles and news about stock market manipulation. Taking advantage of the development of the securities market, individuals and organizations take advantage of this act in contravention of the law. So what is “stock market manipulation” and how will it be handled?
1. What is stock market manipulation?
According to Clause 3, Article 12 of the Law on Securities 2019, stock market manipulation is the act of using one or more trading accounts of oneself or another person or colluding to buy and sell securities in order to create supply and demand. , artificial demand; trading securities in the form of colluding, enticing others to buy and sell in order to manipulate securities prices; combine or use other trading methods or combine spreading false rumors, providing false information to the public to manipulate securities prices.
In addition, according to points dd and e, Clause 2, Article 3 of Decree 156/2020/ND-CP stipulating acts of manipulating the stock market, including:
Expressing opinions directly or indirectly through the mass media about a type of security or the issuer of a security in order to influence the price of that type of security after the transaction has been made. and hold a position in that security;
Using methods or performing other trading behaviors or combining spreading false rumors, providing false information to the public to create artificial supply and demand, and manipulate securities prices.
2. How will stock market manipulation be handled?
– According to the provisions of Article 211 of the 2015 Penal Code on the crime of manipulating the securities market:
+ In case individuals commit crimes: depending on the nature and seriousness of the crime, the offenders may be fined up to VND 4,000,000,000 or imprisoned for up to 7 years. In addition, the offenders may also be banned from holding certain posts, practicing certain professions or doing certain jobs for one to five years.
+ In case a commercial legal entity commits a crime: may be subject to a fine of up to VND 10,000,000,000, be permanently suspended from operation, banned from doing business, banned from operating in certain fields from 01 to 03 years or ban from raising capital from 01 to 03 years.
– According to the provisions of Article 36 of Decree 156/2020/ND-CP (amended by Clause 30, Article 1 of Decree 128/2021/ND-CP), specifying the level of administrative penalties for acts violations of stock market manipulation as follows:
A fine of 10 times the illegal revenue but not less than 3,000,000,000 VND for organizations, 1,500,000,000 VND for individuals;
Suspend securities business and service activities for a period of from 01 month to 03 months for securities companies, securities investment fund management companies, branches of securities companies or water fund management companies. foreigners in Vietnam commit violations;
Deprivation of the right to use securities practice certificates for a period of 18 to 24 months for securities practitioners who commit violations.
Forcible return of illegal revenues obtained from committing violations
Thus, the act of manipulating the stock market, depending on the nature and extent of the offense, shall be administratively handled or prosecuted for penal liability in accordance with law.
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