Under what circumstances is insider trading considered illegal?

  • A. When the trader is a director of the company.
  • B. When the inside information has not yet been disclosed to the public.
  • C. When the trader fails to notify the Securities Commission.
  • D. When the trader is an individual investor outside the company.

Insider trading is deemed illegal when the buying and selling of securities are based on inside information that has not been made public. This creates an unfair advantage for investors who do not have access to such information.

What condition would make an insider trade legal?

  • A. With the approval of the board of directors.
  • B. When conducted through a reputable securities company.
  • C. When the inside information has been disclosed to the public.
  • D. When the transaction amount is below the reporting threshold.

An insider trade is considered legal only when the relevant inside information has been disclosed to the public, thus eliminating any informational advantage over other investors.

How can individuals be fined for engaging in insider trading?

  • A. Maximum fine of 500 million VND or double the illegal profit
  • B. Fine of 10 times the illegal proceeds, but not less than 1.5 billion VND
  • C. Warning and retrieval of all profits from the transaction
  • D. Fine of 1 billion VND for the first offense, increasing for repeat offenses

According to Clause 3, Article 5 and Article 35 of Decree No. 156/2020/ND-CP (amended by Decree No. 128/2021/ND-CP), using inside information for securities trading is subject to a fine of 10 times the illegal proceeds. The minimum fine is 1.5 billion VND for individuals, and if there are no proceeds or the calculated fine is lower, the maximum fine of 1.5 billion VND is applied. For organizations, the corresponding fine is 3 billion VND.

Status Update

– 19:28 07/06/2025

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