HCMC - The State Securities Commission (SSC) will soon check and impose tough penalties on individuals and institutions engaging in stock manipulation for illegal profits, said the stock watchdog’s chairman.
Bang told the press that SSC had received reports from Hanoi and HCMC stock exchanges after they discovered frauds. SSC will examine the cases and send inspectors for probes, he said.
Currently, cases in trouble like AAA (An Phat Plastic and Green Environment JSC) and MKV (Cai Lay Veterinary Pharmaceutical JSC) have already been investigated. SSC will send its inspectors to work with involved parties, and impose penalties on violators,” he added.
Prices of the stocks AAA and MKV had increased strongly for a long time, and then, they plummeted continuously, which might point to manipulation by individuals and organizations, according to him.
Bang said that SSC would apply penalties provided for in Decree 85/2010/ND-CP dated August 2, 2010 which covers civil penalties in securities trading and securities markets. According to this Decree, the maximum administrative fine for stock manipulation is VND300 million.
Furthermore, Bang said that with severe frauds, they will be handed over to police for criminal investigations.
At present, SSC is drafting a regulation to confiscate profits gained through securities frauds.
