China Securities Regulatory Commission publicly solicits opinions on the "Administrative Penalty Implementation Rules for Violations of Securities Transfer (Draft for Comments)"

On April 17, the China Securities Regulatory Commission publicly solicited opinions on the "Administrative Penalty Implementation Rules for Violations of Securities Transfer Cases (Draft for Solicitation of Opinions)." It clarifies the connotation and specific situations of "transfer of securities" as stipulated in Article 186 of the Securities Law, including "transfer of securities within the restricted transfer period" and "transfer of stocks that do not comply with laws, administrative regulations, and regulations of the China Securities Regulatory Commission," as well as the identification of illegal subjects of concerted action. It is worth noting that there are various types of violations of securities transfer. To facilitate law enforcement, the "Rules" categorize violations of securities transfer into four categories based on the nature of securities, behavior subjects, behavioral characteristics, and the degree of harm, striving for certainty and precision in law enforcement. The original text is as follows: The China Securities Regulatory Commission publicly solicited opinions on the "Administrative Penalty Implementation Rules for Violations of Securities Transfer Cases (Draft for Solicitation of Opinions)" In order to thoroughly implement the spirit of the "Opinions of the State Council on Strengthening Supervision to Prevent Risks and Promote the High-Quality Development of the Capital Market," comprehensively improve the reduction regulation system, and crack down on various violations of reduction, based on the summary of regulatory practice in recent years and the collection of opinions and suggestions from multiple parties, the China Securities Regulatory Commission drafted the "Administrative Penalty Implementation Rules for Violations of Securities Transfer Cases" (hereinafter referred to as the "Rules") for solicitation of opinions, and now openly solicits opinions from society. The "Rules" consist of eighteen articles, covering: First, standardizing the identification of "violations of securities transfer." Clarify the connotation and specific situations of "transfer of securities," "transfer of securities within the restricted transfer period," and "transfer of stocks that do not comply with laws, administrative regulations, and regulations of the China Securities Regulatory Commission" as stipulated in Article 186 of the Securities Law, as well as the identification of illegal subjects of concerted action. It is worth noting that there are various types of violations of securities transfer. To facilitate law enforcement, the "Rules" categorize violations of securities transfer into four categories based on the nature of securities, behavior subjects, behavioral characteristics, and the degree of harm, striving for certainty and precision in law enforcement. Second, standardizing the penalties for "violations of securities transfer." Different discretionary indicators are set for different categories in order to achieve proportional punishment. At the same time, specific provisions are made for adjusting the penalty based on the circumstances of the violation, as well as providing prompts for concurrent penalties, adjustments to the application of penalties, and market access restrictions. We welcome valuable opinions from all sectors of society. The China Securities Regulatory Commission will carefully study the feedback from various parties, further revise and improve the rules, and publish them for implementation in accordance with procedures.