Vietnamese investor fined over $61,000 for stock market manipulation
Vietnamese investor fined over $61,000 for stock market manipulation
The State Securities Commission of Vietnam (SSC) has imposed an administrative fine of VND1.5 billion (US$61,640) on Nguyen Huu Duc, a native of central Da Nang City for manipulating the local stock market.
Nguyen Huu Duc, a native of Da Nang City, central Vietnam, has been fined VND1.5 billion (US$61,640) for using 76 securities accounts to manipulate the local stock market. Photo: Binh Khanh / Tuoi Tre |
From January 4 to June 17 last year, Duc was found to have used his securities account and 75 accounts owned by 21 other investors to constantly transact FIR shares issued by First Real JSC.
His act was aimed at creating artificial supply and demand and manipulating the prices of FIR, thereby violating regulations of the Law on Securities, the SSC said.
However, the SSC added that he did not make illegal gains from his violations, so it levied the administrative fine on him.
Besides, the SSC banned him from stock trading activities, holding any positions at securities firms and their branches, asset management companies, and foreign fund management companies in Vietnam over a course of two years, with effect from November 8 this year.
Previously, the SSC had sanctioned many individuals at Louis Holdings, FLC, and others for stock market manipulation.
These manipulators opened securities accounts, or hired, asked others to open accounts for them in order to artificially affect the supply and demand in the stock market.
Data from the Vietnam Securities Depository and Clearing Corporation revealed that more than 378,100 securities accounts were forced to close last month, triggering rumors that the closures would erase evidence about stock market manipulation.
In response to the rumors, a leader of the SSC’s Securities Market Development Department affirmed that the review and closures of these securities accounts were aimed at fostering better compliance with prevailing regulations in the stock market.
