SSC to strictly crack down on stock manipulation cases

September 24, 2021 - 08:04
The move comes after some stocks’ prices, recently, showed signs of rising unusually.  
Two investors looking at stock trading boards. Photo

HÀ NỘI — The State Securities Commission of Việt Nam (SSC) said that it is implementing strict supervision and inspection measures to clarify abnormal signs in the market, especially stock manipulation cases. 

The move comes after some stocks’ prices recently showed signs of rising unusually.  

The development of information technology to facilitate online trading activities and the quick adaptation of securities companies have helped the stock market boom in terms of liquidity. Of which, cash flows from new investors have contributed a large part.

Meanwhile the number of groups and topics related to stocks have also surged for more than a year. Many organisations and individuals consider these channels a useful solution to approach new investors, communicate and support their existing customers.

Many online forums and groups provide objective and multi-dimensional information, exchange policy information, market developments, business results, or corporate information. 

This is a positive point, helping the stock market come closer to people, improve knowledge and skills for investors, especially new investors.

However, there are still some forums and online groups suggesting buying or selling stocks subjectively. These stocks showed signs of abnormal rises and falls. There is also the phenomena of many stocks consecutively hitting celling prices despite losses in business activities. 

Based on regular observation and reports from the press, public opinion about suspicious phenomena on social networks, as well as the movements of some related stocks, the SSC’s supervisory and inspection units have been closely coordinating with relevant authorities to learn about and collect information on the above-mentioned issues, the SSC said.

Despite the impact of the COVID-19 pandemic, monitoring and handling of violations is still conducted regularly and continuously. Inspection activities are adjusted more flexibly to meet actual conditions.

After the pandemic is more effectively controlled, and provinces and cities ease social distancing measures, management agencies will speed up the implementation of direct inspections, while ensuring strict compliance with COVID-19 prevention measures. 

Through monitoring and inspection, if any violation is detected, it will be strictly handled in accordance with the law, and even be transferred to the investigating agency if there are criminal elements. Currently, stocks with unusual movements are closely monitored by many agencies.

“If there is a violation, it will be punished according to the provisions of the law. In particular, market and stock price manipulation cases will be a priority and strictly handled to ensure deterrence and discipline for the market,” said a leader of the SSC.

In first eight months of the year, the SSC has deployed seven teams to inspect investors' transactions. 

Based on the results of regular monitoring and inspection activities, the SSC has issued a total of 252 administrative sanctioning decisions with fines totalling VNĐ9.6 billion (US$420,870).

More and more cases of manipulating the market and stock prices have been discovered, severely punished, and even criminally handled.

In early August, Hà Nội Department of Information and Communications also issued a decision to impose an administrative penalty of VNĐ15 million on an individual in Hai Ba Trưng District for using social media accounts to provide fake dispatches of the Hồ Chí Minh Stock Exchange (HoSE) and to provide false information.

This is the first time an individual has been fined for providing fake information about Việt Nam's stock market on social media.

During July - August, SSC also fined three individuals for violating disclosure norms in bank stock trading. — VNS