The State Securities Commission (SSC) has recently issued Decision No. 323/QD-XPHC on administrative sanctions for violations in the securities and stock market field against Vietnam Securities Joint Stock Company.
Accordingly, Vietnam Securities was fined VND 175 million for violating regulations on debt limits. Specifically, from April 14, 2024, to April 23, 2024, the company’s total debt-to-equity ratio exceeded 5 times.
A fine of VND 187.5 million was imposed for violating regulations on lending restrictions. The company conducted lending transactions outside of margin trading with the company’s employees and advanced money from securities sales to the trading accounts of insiders.
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A fine of VND 175 million was given for changing the capital usage plan without shareholder approval. Specifically, on April 23, 2024, the balance of the company’s payment account was VND 114.9 million. On the same day, this account received VND 229.6 billion from the company’s locked account at BIDV.
The amount of VND 229.6 billion was from the issuance to existing shareholders (9 individuals) to expand the business scale. By April 24, 2024, the company used VND 169.6 billion (equivalent to 73.8% of the proceeds from the issuance) to transfer to Bac A Bank with the content of principal repayment.
In addition, Vietnam Securities was fined VND 92.5 million for failing to disclose information that must be disclosed. Accordingly, the company did not disclose information about the Board of Directors’ Resolution No. 06/2024/NQ-HĐQT related to the loan from Bac A Bank and Resolution No. 07/2024/NQ-HĐQT on approving the loan of VND 169.6 billion to the company’s employees.
A fine of VND 175 million was imposed for inaccurate reporting. Specifically, the company inaccurately reported financial safety ratios related to the Bac A Bank loan and the loan to the company’s employees in the periodic financial safety reports at some time points: April 30, 2024; May 31, 2024; June 30, 2024. Inaccurate reporting of transactions with insiders (CEO) of the company in the management situation report in 2023 and 2024.
A fine of VND 85 million was given for failing to establish and maintain an internal audit system in the company’s business activities as prescribed.
Finally, Vietnam Securities was fined VND 275 million for advancing money from securities sales to some investors before getting approval from the SSC to provide securities sales advance service.
For the violations mentioned above, Vietnam Securities was administratively fined a total of nearly VND 1.2 billion.
At the same time, the company must remedy the consequences by reporting accurate information for the act of reporting inaccurate information; and forcing the latest General Meeting of Shareholders to approve the change of capital usage plan and the amount of money collected from the offering or private placement of securities for the act of changing the capital usage plan and the amount of money collected from the offering or private placement of securities without the approval of the General Meeting of Shareholders.
Vietnam Securities Joint Stock Company was established under Decision No. 19/UBCK-GPHĐKD dated October 27, 2006, by the State Securities Commission. The head office is located at Floor 2, 107 Nguyen Thai Hoc, Le Loi Ward, Vinh City, Nghe An Province.
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