People.Cn Co.Ltd(603000) Beijing, January 23 (reporter Wang Zhen) – cancel the administrative and criminal pre procedure, accurately “chase the first evil”, and regulate the “deceptive” reorganization… Recently, the Supreme People’s Court issued several provisions of the Supreme People’s Court on the trial of civil compensation cases of misrepresentation infringement in the securities market (hereinafter referred to as “Several Provisions”). The CSRC said that we should consolidate the responsibilities of intermediaries, continuously improve the quality and efficiency of investor protection, and strengthen the crackdown on violations in the capital market.
The CSRC pointed out that securities misrepresentation is a frequent securities violation, which seriously damages the legitimate rights and interests of investors and shakes investors’ confidence. Investigating the civil liability for Securities Misrepresentation infringement according to law is not only an important part of three-dimensional accountability for violations in the capital market, but also an important measure to improve the cost of violations in the capital market.
The several provisions further refine and clarify the constituent elements and investigation mechanism of civil liability for misrepresentation infringement in the securities market:
Cancel the administrative and criminal pre procedure stipulated in the original judicial interpretation, and timely and comprehensively protect the litigation rights of damaged investors; The definition of false statements such as false records, misleading statements, major omissions and failure to disclose as required is clarified, the predictive information safe harbor system is stipulated, and the key contents such as implementation date, disclosure date, materiality and transaction causality in the identification of false statements are optimized and improved, which is conducive to the operation of judicial practice; Combined with legal provisions and judicial practice, it has refined the fault identification standards and exemption defenses for directors, supervisors, senior executives and other directly responsible persons, independent directors, recommendation and underwriting institutions, securities service institutions and other subjects, responded to market concerns and stabilized market expectations; Strengthen the responsibilities of controlling shareholders and actual controllers to implement accurate “chasing the first evil”, stipulate the responsibilities of counterparties of major asset restructuring to regulate “flickering” restructuring, investigate the external assistance forces that help counterfeiters to curb false statements, and block the compensation agreements such as sponsors and underwriters, so as to promote their diligence in the whole process and compact the responsibilities of relevant responsible subjects; Optimized the benchmark date and benchmark price system, supplemented the loss calculation method of induced empty false statements on the basis of traditional induced multiple false statements, stipulated the treatment method of multi account transaction loss calculation, clarified the relevant contents of loss causality identification, and systematically improved the loss identification rules.
The CSRC will actively cooperate with the Supreme People’s court to steadily and orderly implement the several provisions, take the reform of the whole market registration system as the traction, comprehensively promote the improvement of the quality of listed companies, compact the responsibilities of intermediaries, and constantly improve the quality and efficiency of investor protection. Meanwhile, the CSRC will continue to implement the work requirements of “zero tolerance”, optimize the judicial cooperation mechanism for law enforcement in the capital market, strengthen the crackdown on violations in the capital market, and promote the high-quality development of the capital market.
