Listed company insider registration system regulations will be implemented on November 25 (VC325)

The China Securities Regulatory Commission issued on October 26 "Regulations on the Establishment of Insider Information Insider Registration Management System for Listed Companies". All parties, intermediaries, and administrative departments of listed companies are included in the registration of insider information insiders.

It is understood that this regulation is aimed at urging listed companies to manage the confidentiality of inside information, and to systematically manage the registration of insiders before the inside information is publicly disclosed according to law.

According to the regulations, the shareholders, actual controllers and related parties of a listed company should research and initiate major events involving the listed company and other events that have a significant impact on the listed company ’s stock price.

Intermediaries such as securities companies, securities service agencies, and law firms accept commissions to engage in securities service business. If the entrusted matter has a significant impact on the listed company ’s stock price, insider information registration is also required. It is worth noting that the regulations also include personnel from administrative departments into the registration of insiders of inside information.

In addition, listed companies conducting acquisitions, major asset reorganizations, issuance of securities, mergers, divisions, share repurchases, and other major matters, in addition to filling out insider information files of insiders of listed companies, they should also make a memorandum on the progress of major matters, including planning and decision-making The time of each key point, the list of decision-makers involved in planning, and the method of planning decisions.

The China Securities Regulatory Commission requires that listed companies should conduct self-examination on the situation of insider information insiders buying and selling the company's stock and its derivatives. If an insider who finds inside information conducts insider trading, leaks inside information, or recommends others to use inside information to conduct a transaction, the listed company shall verify and hold accountable the relevant personnel according to its insider information insider registration management system, and within two working days. The relevant situation and processing results shall be reported to the local agency of the Securities Regulatory Commission where the company is registered.

According to regulations, the insider information insider file shall be kept for at least ten years from the date of recording. The CSRC, its dispatched agencies, and the stock exchange may check the insider information insider file. This regulation will take effect on November 25, 2011.

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