The Finance Ministry and the State Securities Commission of Vietnam have proposed doubling the fine issued to those caught manipulating the stock market.
The two governmental bodies are filing a draft decree which stipulates that an individual found guilty of share-price manipulation could be levied fines up to VND1 billion (US$48,000).
Under the draft decree, businesses caught manipulating the market may be fined up to VND2 billion.
The amounts of the fines specified in the draft decree, set to be submitted to the government in the second quarter of this year, are twice those listed in the existing decree issued in 2010.
Stock regulators also intend to increase fines to VND400-600 million for individuals and VND0.8-1.2 billion on organizations that directly and indirectly provide misleading information on the stock market.
Late last month the securities commission announced it had discovered that a group of investors had manipulated the market by creating fake demand and supply, after the commission noticed continuous increases in price of stocks that had been cheap previously and which were not expected to rise in value, according to a VTV report at that time.
Who these investors were and how much they will be fined has yet to be made public.
Vu Thi Chan Phuong, head of the commission’s inspection unit, said it will be monitoring the stock market more closely.
The securities commission last year imposed 180 fines totaling VND11 billion ($527,000) for various cases of fraud. The most popular scheme was leaking transaction information of firms’ internal shareholders.
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