Vietnam’s Ministry of Public Security will launch a campaign to intensively check, clarify and handle violations on the stock market, especially “manipulation” and “fraud to appropriate assets.”
The ministry said that many complicated crimes related to the stock market have negatively impacted the investment environment and affected social security and order.
For example, the case of FLC and companies under the same ecosystem such as BOS Securities and FLC Faros have highlighted loopholes in the legal framework and criminals have used them to misappropriate assets of investors.
The manipulation of supply-demand factors to push up the prices of shares and profiteer, partly due to the ease in opening new trading accounts and using proxy accounts, is one of the tricks played by swindlers.
Another trick is to disguise loans as collaborative investments with fixed interest rates between customers, securities companies and third-party firms. This allows criminals to access significant resources to manipulate stock prices and make illegal profits.
The Ministry of Public Security also noted another scheme whereby data is cooked with accounting and financial tricks. Firms used this to increase their registered capital without making actual contributions and then profiteered from the acts.
Many have also manipulated or engaged in “scripted activities” at auctions, damaging assets of the state, businesses and investors.
Another common profiteering trick is to use the social media to spread rumors and do other things in order to influence investors and maneuver the stock market.
In order to handle such violations and improve market security and investors’ sentiments, the Ministry of Public Security will cooperate with relevant agencies to inspect suspicious individuals and activities; hand out administrative penalties to violators for “lending securities accounts to others,” allowing market manipulation; and improve information dissemination to boost investors’ awareness.
To prevent ploys like “increasing registered capital without actual payment,” the ministry has asked relevant agencies to step up monitoring of firms, update legal frameworks and undertake preventive measures.
To close glaring loopholes in the legal framework, the ministry has asked relevant agencies to update terms related to inspection mechanisms and responsibilities of inspectors in a bid to prevent collusion in covering up crimes.