Chinese lawmakers are taking the opportunity of the latest revisions to the country’s Securities Law to lay legal grounds for a full revamp of the stock listing system, tougher penalties on market violations and class actions in securities litigation as years-long efforts to amend the law reach the final stage, reported Caixin.
A latest draft of the revised Securities Law was submitted Monday to the bimonthly session of the National People’s Congress (NPC) Standing Committee, China’s top legislature, for a fourth reading, which is expected to be the final review of the changes. Once passed, the new Securities Law may be enacted as soon as the end of this year, said analysts.
The NPC’s Constitution and Law Committee Monday proposed to the Standing Committee new changes in the draft revisions, including terms to expand a registration-based initial public offering (IPO) system, broaden the definition of securities and impose harsher punishments on market misconduct, state media reported.
The committee suggested revising terms related to the listing procedure based on a registration system and remove requirements for companies to obtain listing approval. The new law should also pave the way to gradually expand the registration-based IPO system to all markets in the country, according to the committee.