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Chairman of Vietnamese conglomerate FLC faces fine for not reporting sale of almost 75mn shares

Chairman of Vietnamese conglomerate FLC faces fine for not reporting sale of almost 75mn shares

Tuesday, January 11, 2022, 17:36 GMT+7
Chairman of Vietnamese conglomerate FLC faces fine for not reporting sale of almost 75mn shares
Trinh Van Quyet, chairman of Vietnamese conglomerate FLC. Photo: T.Huyen / Tuoi Tre

The State Securities Commission of Vietnam (SSC) is considering fining Trinh Van Quyet, chairman of conglomerate FLC, for failing to report his sale of nearly 75 million shares of the company.

The SSC announced on Tuesday morning that it was working with relevant authorities to deal with Quyet’s violation in accordance with regulations.

The commission received a report from the Ho Chi Minh City Stock Exchange (HoSE) at 5:45 pm, nearly three hours after the end of Monday trading, that the chairman had sold 74.8 million FLC shares without giving a notice in advance as promulgated by the law.

The law requires major shareholders of listed companies to announce their planned transactions in advance.

Nearly 135 million FLC shares were exchanged on the market on Monday, far higher than the daily average of 15 to 45 million shares.

H., an investor, said he rushed to buy FLC shares on Monday morning at VND24,100 (US$1) per share and expected to see a threefold or fourfold increase in the coming days.

However, FLC plunged to the floor price of VND21,150 ($0.9) in afternoon trade on the same day.

Later, many investors were shocked to learn about Quyet’s registration to sell 175 million FLC shares between January 10 and 17, reducing his ownership in the company from 30.34 percent to 5.7 percent.

Such important information was only found in a document published on the official website of FLC.

The document was signed by chairman Quyet on January 5 and sent to several agencies including the HoSE.

However, the HoSE did not update it on its news portal, where investors often seek information of listed enterprises instead of accessing their official websites.

In late 2017, the SSC also decided to penalize Quyet for failure to report the sale of 57 million shares of FLC.

The chairman could have pocketed at least VND400 billion ($17.6 million) compared to his fine of VND65 million ($2,860).

In relevant news, the HoSE once again experienced disruption due to system jamming at 2:04 pm on Monday, but the problem was fixed around 20 minutes later.

Closing the day, the VN-Index dropped nearly 25 points against the previous session to 1,503.71 points, with more than 1.38 billion shares changing hands on HoSE.

The total transaction value on the market, including the HoSE, the Hanoi Stock Exchange (HNX), and the UPCoM, the market for unlisted public companies, reached more than VND50.117 trillion ($2.2 billion).

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