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Three levels of unusual security trading surveillance

In the April 29 press release, the Treasury noted that recently Vietnamese stock market be affected by negative domestic and foreign developments such as the rise in interest rates in the United States, the trade war between countries, the geopolitical situation, the high price of oil, the volatility of the main currency of the financial market.

Stocks entered an unpredictable phase.

In addition to the positive side of the stock market, the State Securities Commission, based on supervision, found that there were listed and registered stocks with sharp fluctuations in trading volume and price. There are some unusual fluctuations. As mentioned earlier, several newspapers, magazines and websites have also reported on the rise in price of some stocks in the market.

According to the Ministry of Finance, the legal regulations on the monitoring of irregular transactions and the treatment of manipulative transactions have been fully enacted. The oversight work on the exchange was previously divided into 2 tiers where the exchange is the first line supervisor responsible for monitoring signs of abnormal transactions and reporting to the SSC, and the second line supervisor.

As of the Securities Act 2019, supervision of stock exchange transactions has been upgraded to 3-tier supervision, adding a line of supervision of a securities company alongside supervision of the stock exchange and the State Securities Commission.

In the past, the State Securities Commission, under the direction of the Ministry of Finance, has monitored, investigated and dealt with cases of stock market manipulation.

Typically, the State Securities Commission has recommended and cautioned investors when investing in securities groups, continues to strengthen cyberspace oversight and information processing, and coordinates with relevant securities authorities. Recognize and treat severely persons and organizations violating the provisions of the Securities Act (Case Dang Nhu Quynh Posting incorrect information on personal Facebook page negatively impacts the stock market, April 2022).

Strengthen supervision and deal strictly with organizations and individuals that violate regulations on transactions and information disclosure, especially transactions and information disclosure activities of major shareholders and founding shareholders. , corporate governance (case Trinh van Quiet was prosecuted for “stock market manipulation”, “concealment of information in securities transactions”, March 2022).

strengthening control over the activities of investment firms, in particular lending using financial leverage; Strictly treat securities companies involved in stock market manipulation (the “stock market manipulation” case occurred at Tri Viet Securities Joint Stock Company, Louis Holdings Joint Stock Company, April 2022).

As for the issue The press reflected on the phenomenon of securities companies (securities companies) managing accounts, advising and conveniently investing in securities “while kicking and whistling”.According to international practice, securities firms may engage in securities trading, securities issuing, securities brokerage and securities investment advice.

Sentence 1, Article 72 of the Securities Act stipulates that a securities company is entitled to conduct one, several or all securities transactions, including: securities brokerage, securities proprietary trading, securities underwriting and advisory services. Stock investment advice.

Conflicts of interest may arise between the securities firm and the customer with regard to the avoidance of conflicts of interest, the operational process, the securities firm authorized for proprietary trading, customer account management and securities investment advice. To prevent this, the Law on Securities (Article 89) and Guidance Documents (Circular No. 121/2020/TT-BTC of the Minister of Finance regulating the activities of investment firms) have imposed the limitation of conflicts of interest between clients and investment firms (Article 4, 13 , 22). Accordingly, the securities firm is obliged to prioritize the interests and protect the assets of clients.

In terms of oversight management, the State Securities Commission conducts regular and continuous monitoring through reports or on-site inspections of the activities of securities firms to ensure that securities firms operate in accordance with the law.

Luong Bang

Why are securities breaches on the rise?Greater market size and openness combined with stricter regulations have led to more complex problems and more sophisticated securities violations.

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