The China Securities Regulatory Commission is publicly soliciting opinions on the "Administrative Penalty Implementation Rules for Violations in Securities Transfer Cases (Draft for Comments)"

According to the Zhitong Finance APP, on April 17, the China Securities Regulatory Commission (CSRC) publicly solicited opinions on the "Implementation Rules for Administrative Penalties for Illegal Transfer of Securities Cases (Draft for Comments)." It clarifies the connotation and specific circumstances of "transfer of securities," "transfer of securities during the restricted transfer period," and "transfer of stocks that do not comply with laws, administrative regulations, and the provisions of the State Council's securities regulatory authority" as stipulated in Article 186 of the Securities Law, as well as the identification of illegal subjects of concerted actions. It should be noted that there are various types of illegal transfer of securities. To facilitate law enforcement operations, the "Rules" subdivide illegal transfer of securities behaviors into four categories based on the nature of the securities, the subject of the behavior, the characteristics of the behavior, and the degree of harm: "illegal transfer of securities during the restricted transfer period," "non-compliance with administrative regulations and CSRC provisions regarding holding periods and selling times," "non-compliance with laws, administrative regulations, and CSRC provisions regarding selling quantities and information disclosure," and "failure to suspend trading as required," aiming for accurate identification and precise law enforcement. The original text is as follows: The China Securities Regulatory Commission solicits public opinions on the "Implementation Rules for Administrative Penalties for Illegal Transfer of Securities Cases (Draft for Comments)" In order to thoroughly implement the spirit of the "Several Opinions of the State Council on Strengthening Regulation, Preventing Risks, and Promoting High-Quality Development of the Capital Market," comprehensively improve the reduction rules system, and severely crack down on various types of illegal reductions, the CSRC has drafted the "Implementation Rules for Administrative Penalties for Illegal Transfer of Securities Cases" (hereinafter referred to as the "Rules") draft for comments, based on systematic summarization of regulatory work practices in recent years and research and feedback from various parties, and is now publicly soliciting opinions from society. The "Rules" consist of eighteen articles, and the main content includes: First, standardizing the identification of "illegal transfer of securities." It clarifies the connotation and specific circumstances of "transfer of securities," "transfer of securities during the restricted transfer period," and "transfer of stocks that do not comply with laws, administrative regulations, and the provisions of the State Council's securities regulatory authority" as stipulated in Article 186 of the Securities Law, as well as the identification of illegal subjects of concerted actions. It should be noted that there are various types of illegal transfer of securities. To facilitate law enforcement operations, the "Rules" subdivide illegal transfer of securities behaviors into four categories based on the nature of the securities, the subject of the behavior, the characteristics of the behavior, and the degree of harm: "illegal transfer of securities during the restricted transfer period," "non-compliance with administrative regulations and CSRC provisions regarding holding periods and selling times," "non-compliance with laws, administrative regulations, and CSRC provisions regarding selling quantities and information disclosure," and "failure to suspend trading as required," aiming for accurate identification and precise law enforcement. Second, standardizing the penalties for "illegal transfer of securities." Different categories are set with differentiated discretionary indicators to ensure proportionality between punishment and offense. Additionally, it provides enumerative regulations on circumstances for adjusting penalties, situations for concurrent penalties and heavier penalties, and prompts regarding market entry bans. All sectors of society are welcome to provide valuable opinions. The CSRC will carefully study feedback from all parties and further revise and improve the rules before releasing and implementing them according to procedures. This article is compiled from the "CSRC Release" WeChat public account, edited by Liu Jiayin of Zhitong Finance