The State Securities Commission of Vietnam has fined local conglomerate Hoang Anh Gia Lai VND3 billion (US$129,400) fine for failing to report the trade of its subsidiary’s stocks.
Aside from the fine, the State Securities Commission has suspended Hoang Anh Gia Lai (HAGL) JSC from securities trading for five months.
Previous reports showed that Hoang Anh Gia Lai Agricultural JSC, a subsidiary of HAGL, had used its HNG stocks to guarantee bond issuance of a member company at a credit institution.
Due to the overdue interest on this bond, the credit institution sold 20 million HNG stocks on January 7 and another 5.4 million on January 10 on HAGL’s securities account to recover the debt.
However, HAGL did not report in advance the trade of these stocks in accordance with regulations.
Founded in 1993 by Doan Nguyen Duc, Hoang Anh Gia Lai JSC was originally named Hoang Anh Pleiku Private Enterprise, according to the firm’s website.
Based in the Central Highlands province of Gia Lai, the company changed its name in 2006, and its stocks were listed on the Ho Chi Minh City Stock Exchange under the code HAG in 2008.
Following the trading session on Thursday, HAG was valued at VND9,030 (US$0.39) per stock, while HNG at VND6,230 ($0.27) apiece.