SHANGHAI: China on Saturday amended a criminal law to increase imprisonment terms for securities and futures market crimes, including fraudulent securities issuances and information disclosure fraud, according to a regulatory statement.
According to an online posting by the China Securities Regulatory Commission on Saturday night, the imprisonment for fraudulent securities issuances was raised from five to 15 years, while the maximum sentencing for fraudulent disclosures was raised to 10 years from three. The amendment was passed by the National People's Congress Standing Committee on Saturday, and will come into effect from Mar 1.
The amendments also strengthen penalties against controlling shareholders and intermediaries such as sponsors who act as"gatekeeers" in securities issuances. Behaviours such as instigating fraudulent issuances and concealment of relevant matters will be within the scope of criminal activity, added the CSRC statement.