This is one of the important contents prescribed at the Decree No. 145/2016/ND-CP dated November 01, 2016 of the Government on amending the Government’s Decree No. 108/2013/ND-CP dated September 23, 2013 on penalties for administrative violations against regulations on securities and securities market.
In particular, from December 15, 2016, any organization conducting the non-public offering of stocks inconsistently with the registered plan or regulated period; conducting the private placement of bonds inconsistently with the approved plan; or failing to open the escrow account at a commercial bank; failing to transfer the proceeds from the offering to the opened escrow account; releasing or using the proceeds from the offering before obtaining a written certification of offering results from the State Securities Commission of Vietnam shall have a fine from VND 70 – 100 million. This fine shall be imposed for failing to apply or delaying the application for registration of public company 36 months or more from the deadline; for delaying the application for securities listing and trading 03 – 06 months from the deadline. For the case failing to reveal the report on asset use accredited by auditors in the General Meeting of Shareholders or failing to state detailed notes to use of assets earned from the non-public offering of stocks in the annual financial statements accredited by auditors, except for cases where stocks are offered for sale for the purpose of swapping them for debts or shares or contributed capital, the fine shall be from VND 50 million – 70 million. Also from December 15, a fine of from VND 400 million to VND 700 shall be imposed for forging documents of the non-public offering of stocks but is not liable to criminal prosecution; a fine equal to between 1% and 5% of total illegally-raised amount of money shall be imposed for forging documents of the public offering of securities but is not liable to criminal prosecution. Specially, a fine of from VND 1 billion to VND 1,2 billion shall be imposed on an organization that organizes the securities trading market against regulations of law provided that there is no illegal revenue earned thereof, instead of VND 1,8 billion to 2 billion as in previous.
This Decision takes effect on December 15, 2016.
