China increases imprisonment terms for securities, futures market crimes to 15 years

The China Securities Regulatory Commission building in Beijing. PHOTO: GREG BAKER/AGENCE FRANCE-PRESSE/GETTY IMAGES
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China has amended a prison legislation to enhance imprisonment terms for securities and futures market crimes, together with fraudulent securities issuances and data disclosure fraud.

The modification of the legislation was handed on Saturday by the National People’s (*15*) Standing Committee and disclosed by the China Securities Regulatory Commission (CSRC) in an online posting

According to the modification, imprisonment for fraudulent securities issuances which was beforehand 5 years will now be 15 years, whereas the utmost sentencing for fraudulent disclosures which was beforehand 3 years, was raised to 10 years.

The new legislation is anticipated to take impact from March 1.

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The amendments additionally strengthen punishment in opposition to controlling shareholders and intermediaries resembling sponsors who act as “gatekeeers” in securities issuances.

Instigating fraudulent issuances and concealment of related issues will likely be throughout the scope of prison exercise, in accordance to the CSRC assertion.

The China Securities Regulatory Commission is the principle regulator of the securities trade in China.

China’s first Securities Law was handed December 1998,  and have become efficient July 1, 1999. It is the nation’s first complete securities laws, and grants CSRC “authority to implement a centralized and unified regulation of the nationwide securities market so as to guarantee their lawful operation”.