China has issued a regulation on how to deal with irregularities arising from securities issues in an attempt to improve order in the securities industry and on the stock market.
The regulation, issued yesterday by the China Securities Regulatory Commission (CSRC), says that the CSRC has the right to freeze and close down an institution's illegal cash, securities, property and anything that might be important evidence relating to an illegal securities case.
The new regulation, based on the new Securities Law in force since January 1 this year, will come into effect immediately, according to the CSRC.
The CSRC will act if it discovers an institution has transmitted or hidden illegal cash or securities, or has transmitted, hidden or destroyed important evidence relating to the illegal activities.
(China Daily April 5, 2006)
