Chapter V
HANDLING OF VIOLATIONS
Section I. PRINCIPLES FOR HANDLING OF VIOLATIONS, FORMS OF SANCTIONING ADMINISTRATIVE VIOLATIONS AND SANCTIONING COMPETENCE
Article 13. Principles for handling of violations
1. Organizations and individuals that violate this Decree and provisions of relevant laws on private placement of shares shall, depending on the nature and severity of their violations, be disciplined, administratively sanctioned or examined for penal liability. If causing material damage, they shall pay compensations under law.
2. The sanctioning of administrative violations in private placement of shares must comply with this Decree and the law on sanctioning of administrative violations.
Article 14. Forms of sanctioning of administrative violations and consequence remedies
1. Organizations and individuals that violate this Decree are subject to either of the following principal sanctions:
a/ Caution;
b/ Fine.
2. Depending on the nature and severity of their violations, violators may also be subject to either or both of the following additional sanctions:
a/ Suspension of private placement of shares for a definite time;
b/ Confiscation of all illicit gains from the commission of violations.
3. In addition to the sanctions specified in Clauses 1 and 2 of this Article, violators may also be obliged to take one or several of the following consequence remedies:
a/ Forcible compliance with legal provisions against acts of administrative violation;
b/ Forcible cancellation or correction of falsified or untruthful information;
c/ At the request of investors, forcible recall of placed shares and refund of deposits or purchase payments plus demand deposit interests to investors within 30 days after the private placement of shares is cancelled.
Article 15. Statute of limitations for sanctioning
The statute of limitations for sanctioning an administrative violation in private placement of shares activities is 2 years after this violation is committed.
Article 16. Competence to sanction administrative violations
Competent state agencies defined in Article 6 of this Decree shall administratively sanction violations of the law on private placement of shares.
Article 17. Procedures for sanctioning administrative violations
Procedures for sanctioning administrative violations in private placement of shares comply with the Ordinance on Handling of Administrative Violations and other relevant legal documents.
Section 2. ADMINISTRATIVE VIOLATIONS, SANCTIONING FORMS AND LEVELS
Article 18. Violations of regulations on placement dossiers, conditions and organization
1. A fine of between VND 30,000,000 and 40,000,000 shall be imposed on placing institutions and organizations and individuals participating in the compilation and certification of placement dossiers that commit any of the following violations:
a/ Compiling a placement dossier containing falsified information which may cause investors' misunderstanding or inaccurate or inadequate information as prescribed by law;
b/ Submitting a placement dossier beyond the submission time limit or failing to supplement or modify placement dossiers submitted to a competent state agency under Clause 2, Article 10 of this Decree.
2. A fine of between VND 40,000,000 and 50,000,000 shall be imposed on placing institutions that conduct private placement of shares without having registered them with competent state agencies.
3. A fine of between VND 50,000,000 and 70,000,000 shall be imposed on placing institutions and organizations and individuals participating in the compilation and certification of placement dossiers or organization of placements that commit any of the following violations:
a/ Forging documents in placement dossiers, causing damage to investors;
b/ Conducting placements without satisfying the placement conditions specified in Article 8 of this Decree;
c/ Conducting placements not according to placement plans included in placement dossiers submitted to competent state agencies;
d/ Using capital mobilized from placements not according to registered plans under Clause 2. Article 8 of this Decree, except cases of change of the capital use purpose under Clause 2, Article 11 of this Decree.
4. A fine of between VND 70,000,000 and 100,000,000 shall be imposed on placing institutions that employ deceitful tricks in conducting placements in contravention of law.
5. Additional sanctions:
a/ Suspension of a placement for 30 days, for violations specified in Clause 3 of this Article. During the suspension period, the placing institution shall remedy its violation;
b/ Forcible cancellation of a placement if the placing institution fails to remedy its violation after the suspension period.
6. Application of consequence remedies:
a/ Forcible compliance with legal provisions on private placement of shares;
b/ Forcible recall of placed shares, refund of share deposits or purchase payments plus demand deposit interests to investors if these investors request the cancellation of their subscriptions within 30 days after the private placement of shares is suspended under Point a, Clause 5 of this Article.
Article 19. Violations of regulations on reporting and information disclosure
1. A caution shall be served or a fine of between VND 10,000,000 and 20,000,000 shall be imposed on placing institutions that fail to report or disclose information or fail to report or disclose information in an adequate and timely manner or within the prescribed time limit under Clause 3, Article 10 or Article 11 of this Decree.
2. A fine of between VND 20,000,000 and 30,000,000 shall be imposed on placing institutions that disclose information containing falsified or untruthful details.
3. A fine of between VND 40,000,000 and 50,000,000 shall be imposed on placing institutions that advertise share placements on the mass media.
4.Application of consequence remedies:
a/ Forcible compliance with regulations on reporting and information disclosure, for violations specified in Clauses 1 and 2 of this Article:
b/ Forcible cancellation and correction of falsified or untruthful information, for violations specified in Clause 2 of this Article.
Article 20. Violations of regulations on certification of transfer of privately placed shares
1. A fine of between VND 10,000,000 and 30,000,000 shall be imposed on placing institutions and their affiliated persons that certify share transfers during the period of transfer restriction specified in Article 12 of this Decree.
2. Application of consequence remedies:
Forcible compliance with regulations on period of share transfer restriction.
Tìm kiếm
Nghị định 01/2010/NĐ-CP (Bản Word)