CSRC's 6 New Policies Come into Force

BY  | FROM CSFJN | 2013-01-08 13:49
 
As the year of 2013 begins, several policies previously issued by China Securities Regulatory Commission (CSRC) have come into effect. According to the preliminary calculation of the reporter from China Securities Journal, there are six new policies that have come into effect after January 1st, 2013. Such a concentrated release of policy bonus can help boost the confidence of investors.
 
These six new policies include the Measures for the Supervision and Administration of Unlisted Public Companies, the Notice on Implementing Differentiated Income Tax Scheme on the Dividend of Listed Companies, the Interim Provisions on Strengthening the Supervision over the Securities Investment Consulting Business Conducted by Utilizing “Stock Recommendation Software”, the Notice on Issues Regarding Furthering the Reform of the Fund Review Regime, Rules for Corporate Governance of Securities Companies, and the Guidelines for Supervising the Application Documents and Examination Procedures for Overseas Stock Issuance and Listing by Joint Stock Companies.
 
Among them, the Measures for the Supervision and Administration of Unlisted Public Companies published by CSRC on October 11st, 2012 stipulates that the shares of unlisted public companies are allowed to be publicly transferred in stock exchanges duly established abiding by the laws, and that the total number of shareholders can exceed 200 after targeted placements or transfers. It provides the first law for supervising unlisted public companies.
 
On November 16th, 2012, CSRC, together with the Ministry of Finance and the State Administration of Taxation, published the Notice on Implementing Differentiated Income Tax Scheme on the Dividend of Listed Companies, which provides that beginning in 2013, the dividends on the shares of listed companies obtained by individuals through public offerings or transfers will be assessed at differentiated tax rates based on the lengths of holding periods.
 
On December 7th, 2012, CSRC published  the Interim Provisions on Strengthening the Supervision over the Securities Investment Consulting Business Conducted by Utilizing “Stock Recommendation Software”, which clarifies the definition of "stock recommendation software", and emphasizes that any firm or individual without qualifications for securities investment consulting business is prohibited from practicing securities investment consulting business using "stock recommendation software".
 
On December 13th, 2012, CSRC published the Notice on Issues Regarding Furthering the Reform of the Fund Review Regime, according to which a comprehensive reform to the fund review regime will be carried out on January 1st, 2013. One of the most important things for this reform is to cancel the pathway system of fund review. Companies can, at their own discretion, report the quantities and types of funds based on market demand, which will greatly reduce the time required for fund review. In addition, CSRC recently issued the Notice on Implementing the Online Application and Review of Fund Products, which says the online application and review system for fund products is scheduled to be launched on January 1st, 2013.
 
On the same day, CSRC also published the Rules for Corporate Governance of Securities Companies, according to which a securities company shall have the obligation of good faith for clients, and shall not infringe upon the property right, the right to choose, the right to fair trade, the right to know and other lawful rights and interests of clients.
 
On December 20th, 2012, CSRC announced the Guidelines for Supervising the Application Documents and Examination Procedures for Overseas Stock Issuance and Listing by Joint Stock Companies, which lower the thresholds for the overseas listing of domestic companies. In the future, domestic companies that meet the listing requirements applicable in the contemplated place can file an application to CSRC.
 

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