What does Mr. Le Hai Tra say about the stock market being manipulated from the case of Mr. Trinh Van Quyet?

On the afternoon of March 30, discussing with reporters about information about Mr. Trinh Van Quyet and the story of stock price manipulation, Mr. Tra said that market manipulation is always a potential risk in any stock market. In the world. Insider trading also has significant differences in regulation and practice between Eastern and Western stock markets.

According to Mr. Tra, the common practice of the way to prevent manipulation of the stock market is that the stock market management and supervision apparatus is competent and the law prescribes strict handling of violations, from civil to civil. to criminal.

“Advanced markets especially emphasize economic and non-economic penalties that are sufficiently deterrent. In which, violators may be banned from practicing (stocking/banking, auditing, etc.) lawyers…), banned from participating in the board of directors, operating and controlling public companies, listed… permanently”, Mr. Tra said.

Mr. Tra also added that speculation, in the sense of high-risk, fast-revolving investment strategies, has always been a part of the stock market. There are always investors with this need and appetite for risk.

However, Mr. Tra said that the importance of the legal and management system is to ensure a clear regulatory framework, effective monitoring to detect violations, and strict handling enough to deter and prevent block out.

Previously, on March 29, the investigating agency arrested Mr. Trinh Van Quyet, Chairman of the Board of Directors of FLC Group Joint Stock Company, to investigate the crime of manipulating the stock market.

Specifically, after many days of FLC shares being “beaten up” at a very high price, on January 10, the chairman of the board of directors of FLC Group Joint Stock Company sold 74.8 million FLC shares but did not report it. report, do not disclose information before performing the transaction.

Notably, in just one trading session, nearly 135 million FLC shares were matched, which is unusually high. While for a long time, FLC stock only trades with an average volume of 15 – 40 million shares per day.

Also in this session, many investors had just “raced orders” to buy FLC shares at the ceiling price in the morning, and fell to the floor in the afternoon.

After the fact that the head of FLC Group “under-sold” shares, the stock market wobbled, investors continuously sold off FLC and shares related to Mr. Quyet, dozens of other stocks were also banned. contagious.

Right after that, the State Securities Commission decided to block the securities account of Mr. Trinh Van Quyet in order to prevent and prevent further acts that are not in accordance with regulations.

The State Securities Commission also issued a document directing the Ho Chi Minh City Stock Exchange (HoSE) to cancel the transaction of selling 74.8 million FLC shares on January 10 by Mr. Trinh Van Quyet, many investors were purchase refund.

On January 18, the State Securities Commission issued a decision to administratively sanction Mr. Trinh Van Quyet 1.5 billion VND, the highest level according to regulations.

At the same time, the chairman of FLC Group was also subject to the additional sanction of suspending securities trading activities for 5 months.

According to Ngoc Mai