CSRC Issues New Guidelines to Optimise Supervision of Delisted Companies

The CSRC (China Securities Regulatory Commission) has issued new guidelines setting out measures to optimise its supervision of companies after they are delisted from the stock market. 

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The guidelines seek to ensure delisted companies provide basic share transfer services, protect investors' trading rights, and support high-quality refunds to investors, which help to safeguard company business order and social stability.

Delisted companies must comply with securities law requirements to file annual reports, interim reports, and other information disclosures, the guidelines say, adding that they may hire a board secretary as needed.

The guidelines establish information disclosure and corporate governance requirements that are "reasonable" in light of the actual situation of delisted companies, as well as a differentiated supervision mechanism for such firms to improve the accuracy and adaptability of supervision.

The CSRC says the guidelines improve the risk prevention and disposal mechanism, improve investor suitability management, and help to prevent the spread of risks to investors who may not be able to tolerate such risks. 

Delisted companies that perform their regulatory and disclosure obligations in a standardised manner may conduct new fundraising and major asset restructuring, and apply for re-listing on the NEEQ (National Equities Exchange and Quotations), the guidelines say.

Source: Regulation Asia