PRC Securities Law (Draft for Amendments) (Draft for Third Reading)

中华人民共和国证券法 (修订草案) (三次审议稿)

May 30, 2019 | BY

Susan Mok

The system for suspension of the listing and trading of securities may be abolished

Promulgated: 2019-04-26
|

Issued: April 26, 2019

Main contents: The Draft proposes the abolition of the system for suspension of the listing and trading of securities specified in the current Securities Law and instead to have the listing and trading of disqualified securities directly terminated.

Where a security that is listed and traded ceases to satisfy the listing conditions, or another circumstance specified in the listing rules applies thereto, the stock exchange shall terminate the listing and trading thereof in accordance with its business rules (Article 56).

Where a dispute arises between an investor and the issuer, the securities company, etc., the parties may apply to the state established investor protection institution for mediation. Where a securities business dispute arises between an ordinary investor and the securities company and the ordinary investor requests mediation, the securities company may not refuse.

With respect to an act that harms the interests of investors, the state established investor protection institution may, in accordance with the law, support the investors in instituting a legal action in a people's court.

Where a director, supervisor or senior officer of an issuer violates a law, a set of administrative regulations or the company's articles of association in the course of performing his/her company duties, causing the company to incur a loss, or the controlling shareholder, de facto controller, etc. of an issuer infringes the lawful rights and interests of the company, causing it to incur a loss, and the state established investor protection institution holds shares in the company in question, it may institute a legal action in a people's court in its own name in the interests of the company, and neither its shareholding percentage nor the duration of its shareholding shall be subject to the provisions of the PRC Company Law (Article 104).

| Issued: 2019-04-26

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