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CSRC issues access ban

(Xinhua)
Updated: 2006-06-11 09:02

China Securities Regulatory Commission (CSRC) issued a prohibition in Beijing last Friday against the access to the stock market by certain kinds of people.

The regulation, to take effect on July 10, mainly targets controlling shareholders and actual controllers of stock issuers, listed companies, securities companies and securities service organizations should be banned from the country's stock market.

Directors, supervisors and senior managers of such controlling shareholders and actual controllers as well as those who have a liability for information disclosure are also included.

Sources with CSRC said that an access ban from three years to life long would be imposed on these people if they are found having violated China's laws, administrative regulations and the relevant CSRC rules.

Punishment would be delivered in a transparent, fair and just manner and be based upon the aftermath of transgressors' wrongdoing while those who were alleged of having committed crimes would be transferred to the police departments, they said.

People who have their access banned have rights to lodge an appeal and request a hearing. During the prohibition period, however, they are not allowed to engage in securities business in any organization or take the positions of directors, supervisors and senior managers in listed companies.

The access ban, once implemented, would be announced to the general public and be put in file, said CSRC.