Listed Companies Will Establish Insider Information Registration System

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Yesterday, the China Securities Regulatory Commission issued the "Regulations on the establishment of insider information registration and management system for listed companies".

The draft requests the listed companies to establish insider information registration management system, and record all possible companies in time.

It is understood that the provisions are mainly for the above city companies as the main body of internal information management standard.

If the sponsors of major events that generate sensitive information about stock prices are listed companies, listed companies should strengthen the management of insider information according to the relevant requirements of the regulations and establish insider information archive.

If a major matter arises from the sensitive information of the stock price, the initiator is the other party except the listed company. The draft solicitation requires the other parties to have the obligation to cooperate with the listed company to do the insider information registration.

At the specific operational level, the draft solicitation requires that a listed company clarify the obligations and responsibilities of insider information by signing a confidentiality agreement and prohibiting insider trading notification, etc. to shareholders, actual controllers, acquirers, major asset reorganization parties, relevant securities service agencies, and other insiders who can hold insider information for holding more than 5% of the shares of the company, it also requires relevant parties to actively cooperate with listed companies to do a good job in the registration of insider information insiders.

At the same time, according to the different types of disclosure matters, the requirements for insider information files are different.

In order to link up with the management measures of major assets reorganization of listed companies, the draft solicitation requires that listed companies acquire major assets, reorganization, issuance of securities, merger, separation and repurchase of shares and other important matters. In addition to establishing insider information files, a memorandum on major matters should also be made.

In addition to other important matters mentioned above, listed companies only need to establish insider information files.

It is understood that the above draft is a further implementation of the notice issued by the general office of the State Council in 2010 to pmit the opinions of the SFC and other departments on cracking down on and preventing insider trading in the capital market according to law.

The relevant person in charge of the SFC said that preventing and investigating insider trading is the objective need of supervision practice at this stage.

Since 2008, the SFC has launched a trial registration management system for insider information of Listed Companies in areas such as Shenzhen, Fujian and Shanghai. At present, the pilot has been extended to the whole country.

The implementation of the system has achieved positive results in supervision practice, and has provided effective clues for the handling of insider trading inspection.

The steady release of the pilot's action draft issued a good foundation and clear market expectations.