China increases imprisonment terms for securities, futures market crimes

China increases imprisonment terms for securities, futures market crimes

·1 min read

People wearing face masks following the outbreak of the coronavirus disease (COVID-19) walk past a Chinese national flag in front of the building of China Securities Regulatory Commission (CSRC) during morning rush hour, at the Financial Street area in Bei
People wearing face masks following the outbreak of the coronavirus disease (COVID-19) walk past a Chinese national flag in front of the building of China Securities Regulatory Commission (CSRC) during morning rush hour, at the Financial Street area in Bei

SHANGHAI (Reuters) – China on Saturday amended a criminal law to increase imprisonment terms for securities and futures market crimes, including fraudulent securities issuances and information disclosure fraud, according to a regulatory statement.

According to an online posting by the China Securities Regulatory Commission (CSRC) on Saturday night, the imprisonment for fraudulent securities issuances was raised from five to 15 years, while the maximum sentencing for fraudulent disclosures was raised to 10 years from three.

The amendment was passed by the National People’s Congress Standing Committee on Saturday, and will come into effect from March 1.

 

The amendments also strengthen penalties against controlling shareholders and intermediaries such as sponsors who act as “gatekeeers” in securities issuances. Behaviours such as instigating fraudulent issuances and concealment of relevant matters will be within the scope of criminal activity, added the CSRC statement.

(Reporting by Emily Chow; Editing by Alexandra Hudson)