The China Securities Regulatory Commission (CSRC) issued two regulations in Beijing Monday, aiming to enhance market supervision and protect investors' interests.
One of the regulations governs the examination of listed companies. The former regulation on the implementation of the examination system, issued by the CSRC in 1996, was phased out as the new one went into effect Monday.
The new supervisory system involves two categories^Routine inspection covers information disclosure of listed companies, corporate administrative structure, separation of shareholders from listed companies in personnel, finance and assets, corporate financing and accounting, and the use of accumulated funds.
Specific inspection refers to examination of the listed company 's use of funds earmarked for targeted purposes, investors' complaints, and major asset restructuring activities.
The examiner, the CSRC, will issue a circular five days after the examination, pointing out discovered irregularities and a deadline for correction. Serious irregularities that violate the securities law or other related regulations, will be transferred and dealt with by the judiciary department.
The other regulation involves the establishment of a " conversation" system between the inspector and head of the listed company. The board director could be summoned at any time by the CSRC to give explanations if the company faces serious problems like inability to pay off debts with assets, failure to keep the company running, frozen or sealed assets, or major reshuffle of the shareholders.
The CSRC is also authorized to ask related personnel or intermediary agents to participate in such talks when necessary.
(Xinhua 04/02/2001)
