The State Securities Commission (SSC) has just issued Decision No. 62/QD-XPHC on administrative sanctions in the field of securities and securities market against HD Securities Joint Stock Company. The total fine is 942.5 million VND.
The company was fined VND 60 million for violating regulations on opening margin trading accounts when opening accounts for related persons of the Company's Head of the Board of Supervisors.
Fined VND 137.5 million for violating the regulation on restricting margin trading. The Company disbursed margin loans to related persons of the Head of the Supervisory Board on November 17, 2023, January 4, 2024, January 31, 2024, May 29, 2024, June 5, 2024 and June 24, 2024.
The Company was further fined VND137.5 million for violating regulations on investment restrictions of securities companies. In 2023 and 2024, the total value of the Company's investment in bonds exceeded 70% of equity.
HD Securities was also fined VND65 million for late reporting of important documents such as 2023 financial statements and bond offering consultancy status reports.
A fine of VND92.5 million was imposed for failure to disclose information or late disclosure of information on documents such as semi-annual financial reports for 2022 and 2023, reports on the use of capital from bond issuance, and many other documents related to changes in operations and share ownership.
Notably, the Company was fined VND 175 million for reporting incorrect content in the financial safety ratio reports on March 31, 2024 and September 30, 2024, in which the indicators of available capital and risk value were not calculated correctly and completely.
Another violation that resulted in the Company being fined VND275 million was failing to ensure information in the private bond issuance dossier. This dossier lacked important contents such as the value and legal status of the assets, the name of the valuation organization, and the plan to use temporarily idle capital.
In addition to the fines, the State Securities Commission requires HD Securities Company to remedy the consequences by reporting accurate information on violations as prescribed in Clause 4, Article 43 of Decree No. 156/2020/ND-CP.
