CSRC lays down the law on insider trading
December 07, 2012 | BY
clpstaff &clp articlesMergers and acquisitions involving material asset reorganisation will be subject to greater scrutiny under new Regulations, which will increase due diligence costs for businesses in China
On November 6, the China Securities Regulatory Commission (CSRC) issued the Tentative Provisions on Strengthening the Regulation of Unusual Share Transactions in Connection with Material Asset Reorganisation of Listed Companies(中国证券监督管理委员会关于加强与上市公司重大资产重组相关股票异常交易监管的暂行规定), which become effective on December 17 2012.
The Provisions come exactly two years after the State Council and other regulatory bodies jointly issued an Opinion on Combating and Safeguarding against Insider Trading in the Capital Markets in Accordance with the Law (国务院办公厅转发证监会等部门关于依法打击和防控资本市场内幕交易意见的通知).
The Provisions formalise many of the points in the Opinion on how to combat insider trading. Guo Shuqing, the previous chairman of the CSRC, also placed great emphasis on tackling insider trading.
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