CSRC Forms Interagency Group to Curb Crime in Capital Markets

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The group will strengthen coordination between central and local government agencies to better enforce and punish misconduct in capital markets.

The China Securities Regulatory Commission (CSRC) has established an interagency coordination group to coordinate efforts against illegal activities in the capital market.

The group includes government agencies, including the Communist Party of China Propaganda Department, the Supreme People’s Court, the Supreme People’s Procuratorate, the Ministry of Public Security, the Ministry of Justice, and the Ministry of Finance.

In a statement, the CSRC said it recently held the first meeting of the new coordination group, during which officials reviewed and approved the division of labor of each department to crack down on illegal activities in the capital market.

The inter-agency group will promote better coordination between central and local governments, and different regions of China.

It will also step up penalties for misconduct, including financial fraud, market manipulation, insider trading and other violations of laws and regulations – with “zero tolerance” – while improving protection systems. interests of individual investors.

Special arrangements will be made for administrative and criminal enforcement of securities law and related judicial work for “a period of time in the future”.

On Saturday, September 18, the Supreme People’s Procuratorate inaugurated a new CSRC prosecutor’s office, establishing a working mechanism to promote improved law enforcement and judicial work in the capital market.

In a separate statement, the CSRC said it has imposed administrative penalties for illegal behavior in the bond market 152 times since 2019. Most cases have involved financial fraud aimed at laundering performance, failure to disclose information significant effects affecting the company’s creditworthiness, the failures of intermediaries to identify and respond to risks, and the inappropriate use of funds raised from investors, the regulator said.



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