Principles of Information Disclosure on the Securities Market

The principles of information disclosure on the securities market are prescribed in Article 4 of Circular 96/2020/TT-BTC guiding information disclosure on the securities market: information disclosure must be full, accurate and timely in accordance with the law. This is a cross-cutting principle applicable to all subjects with disclosure obligations: public companies, issuers, securities companies, fund management companies and relevant organizations and individuals.

1. Principles of information disclosure on the securities market

Under Article 4 of Circular 96/2020/TT-BTC: (i) information disclosure must be full, accurate and timely in accordance with the law; (ii) disclosure of personal information (citizen ID cards, ID cards, passports, contact addresses, phone numbers, emails, securities trading/depository account numbers, bank account numbers, foreign investor transaction codes, etc.) may only be made with the consent of that individual — where the individual does not consent to public disclosure, two versions of the document are sent to the State Securities Commission and the Stock Exchange (one version with full personal information, one version without personal information) for public disclosure; (iii) the language of information disclosure is Vietnamese; where disclosure is additionally made in a foreign language, the contents must be equivalent; (iv) information disclosure must be carried out by the legal representative or the authorized person for information disclosure, who bears responsibility.

2. Forms of securities information disclosure

Circular 96/2020/TT-BTC prescribes the following forms: periodic disclosure (annual, semi-annual and quarterly financial reports; annual reports; corporate governance reports); extraordinary disclosure (within 24 hours from the occurrence of the event: changes in key personnel, GMS/Board of Directors decisions on material matters, penalties, lawsuits, etc.); disclosure upon request of the State Securities Commission. Information is disclosed on the electronic portal of the organization, the information disclosure system of the SSC, and the Stock Exchange.

3. Penalties for violations of information disclosure rules

Violations of information disclosure rules (failure to disclose, late disclosure, misdisclosure, concealment of information, etc.) are subject to administrative penalties under Decree 156/2020/ND-CP (amended by Decree 128/2021/ND-CP), with monetary fines and remedial measures (compelling proper disclosure, compelling correction of information). Where investors suffer damage, compensation must also be paid as prescribed by law.

Notes on applying current legal provisions

This article is presented for reference, helping readers understand the legal issue at an overview level. Where advice is needed, you should contact an ANT Legal lawyer at 0966.475.966 for review and advice before proceeding.

Common risks to note

• Incomplete or untimely information disclosure.
• Disclosing personal information without consent.
• Failing to make extraordinary disclosure within 24 hours.
• Foreign-language version not equivalent to the Vietnamese version.

How can ANT Legal help?

ANT Legal advises on information disclosure obligations and reviews disclosure procedures for public companies. For quick advice, you may contact a lawyer at 0966.475.966.

Frequently asked questions

What are the principles of information disclosure on the securities market?
Information disclosure must be full, accurate and timely in accordance with the law (Article 4 of Circular 96/2020/TT-BTC). This is a cross-cutting principle applicable to public companies, issuers, securities companies and relevant organizations and individuals.

Within what time limit must extraordinary disclosure be made?
Within 24 hours from the occurrence of the event, for example: changes in key personnel, decisions of the General Meeting of Shareholders/Board of Directors on material matters, penalties or lawsuits.

May personal information be publicly disclosed?
Only with the consent of the individual. Where the individual does not consent to public disclosure, the organization sends the State Securities Commission and the Stock Exchange two versions of the document: one with full personal information and one without personal information.

How are violations of information disclosure rules penalized?
Administrative penalties under Decree 156/2020/ND-CP (amended by Decree 128/2021/ND-CP), with measures compelling proper disclosure and correction of information; where investors suffer damage, compensation must also be paid as prescribed.

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