The China Securities Regulatory Commission (CSRC) Thursday published a new regulation governing its approval committee, introducing higher levels of transparency.
Greater public scrutiny of the powerful committee, which approves stock issue and listing applications, will help improve the overall quality of listed companies, the CSRC said.
Under the regulation, which came into effect on December 5 and replaced an older version enacted in 1999, the committee will start to publicize key information including the date of the meetings, attending committee members, the applicants as well as the committee's decisions.
Committee members are also now required to put their names on the votes to enhance accountability.
The number of members is reduced drastically to 25 from 80 previously, but some of them will work full-time to improve efficiency. Members previously worked on a part-time basis.
Five "yes" votes out of at least seven attending members, approves the application. Previously, six "yes" votes out of nine were required.
Applications now need to go through just one review by the committee, instead of two previously, to avoid situations where two meetings yield sharply different opinions due to different interpretations of approval criteria.
"The essence is to improve the transparency of the committee, strengthen its role as experts, enhance accountability of committee members and place the committee under the scrutiny of the entire public,'' a CSRC spokesperson said.
(China Daily December 12, 2003)
