HCMC – The State Securities Commission of Vietnam (SSC) has imposed an administrative fine of VND310 million on TSG Investment and Construction JSC for repeatedly offering and issuing shares illegally to raise its charter capital.
The SSC on October 27 issued Decision 797 on tackling administrative violations in the securities sector. Under the decision, TSG was fined VND60 million for missing deadlines to submit a number of its financial reports, corporate governance reports, resolutions made in its annual general meetings in the last three years, news site congthuong.vn reported.
The Hanoi-based company was also fined VND250 million for offering and issuing shares via private placement without registering the offering or issues with the SSC. TSG was found to have illegally issued and offered shares via private placement last year to hike its charter capital from VND120 billion to VND300 billion.
Hence, TSG was asked to seek remedies for its wrongdoings by recalling the offered, issued shares and refunding investors their money plus interest.
Besides, the SSC issued Decision 798 asking TSG to take remedial measures for its illegal share issues for shareholders.
TSG launched two share issues for its shareholders. One of them was made in 2017 to increase its capital from VND12 billion to VND100 billion. The other was carried out in 2019 to raise capital from VND100 billion to VND200 billion. The firm did not register both of the issues to the SSC.
Based on the prevailing regulations, TSG has to recall the illegally-issued shares and refund its shareholders their money along with interest.
In related news, trade on the local stock market turned gloomy today, November 2.
The benchmark VN-Index of the HCMC market shed 10.56 points, or 1.02%, over the session earlier at 1,023.19, with 164 winners and 273 losers.
The southern bourse saw its turnover down 7% in volume and 5.5% in value against the previous session at 614 million shares and more than VND10.7 trillion, including around VND1.3 trillion worth of shares traded in block deals.
The VN30 basket had only five advancers, namely VIB, HPG, VPB, PLX, and KDH. Three others, VIC, GAS, and STB, closed almost unchanged. The rest ended in negative territory.
Regarding the HNX-Index on the Hanoi exchange, it lost 0.7 point, or 0.33%, compared to yesterday at 211.66, with 73 advancers and 95 decliners.