China Securities Regulatory Commission, Provisions for Prohibition from Access to the Securities Market

Promulgated: June 7 2006
Effective: July 10 2006

Main contents: Where the following personnel violate the laws, administrative regulations or relevant provisions of the China Securities Regulatory Commission (CSRC) and where the circumstances are serious, the CSRC may, according to the severity, adopt measures to prohibit their access to the securities market for 3 to 10 years, or for life:
(1) the directors, supervisors and senior management personnel of issuers and listed companies, and other persons with an information disclosure obligation or the directors, supervisors and senior management personnel of those other persons with an information disclosure obligation;
(2) the controlling shareholder or de facto controller of issuers and listed companies, or the directors, supervisors and senior management personnel of the controlling shareholder or de facto controller of issuers and listed companies;
(3) the directors, supervisors and senior management personnel of securities companies and persons in charge of their internal business departments, branches and sub-branches, or other securities practitioners;
(4) the controlling shareholder or de facto controller of securities companies, or the directors, supervisors, senior management personnel of the controlling shareholder or de facto controller of securities companies;
(5) personnel engaging in the securities service business such as the directors, supervisors and senior management personnel of securities service institutions, and the de facto controller of securities service institutions or the directors, supervisors and senior management personnel of the de facto controller of securities service institutions; and
(6) the directors, supervisors and senior management personnel of securities investment fund managers and securities investment fund custodians and persons in charge of their internal business departments, branches and sub-branches, or other securities investment fund practitioners (Article 3).

Within the period of prohibition, personnel who have been prohibited from accessing the securities market by the CSRC shall, aside from being prohibited from continuing their engagement in the securities business in the original institution or their post as the director, supervisor or senior management personnel in the original listed company, also be prohibited from engaging in the securities business in any other institutions or assuming the post as the director, supervisor or senior management personnel in other listed companies (Article 4).
Related legislation: PRC Securities Law (Amended), Oct 27 2005, CLP 2006 No.1 p.31
Repealed legislation: Tentative Provisions for Prohibition from Access to the Securities Market, Mar 3 1997, CLP 1997 No.5 p.13