Tracking Progress Of Securities Law Group Review: Amendments Have Been Received Through Consensus And Investor Protection Has Attracted Much Attention.

On December 28th, the office of the Standing Committee of the National People's Congress will hold a press conference at 10 a.m. at the Taiwan Hall of the Great Hall of the people. If the revised draft of the securities law, which is widely concerned by the market, can be passed, the relevant person in charge of the SFC will attend the press conference to answer questions related to the revision of the securities law together.

Since the "four trial" of the securities law was launched in December 23rd, the fifteenth session of the thirteenth NPC Standing Committee has formally heard the report of the NPC and the Constitution Committee on the results of the revised draft Securities Law.

Reporters learned that the report referred to the revised draft of the securities law to make a lot of amendments to many contents. Compared with the previous draft, the report put forward six amendments to the draft amendment to the securities law, including "further increasing penalties for illegal acts of securities", "strengthening investor protection" and "promoting registration system in an all-round way".

So, how can the NPC Standing Committee members have further suggestions on the four reviewers when they deliberate on the newly added content? Reporters also learned from the deliberations that there were many suggestions for the details of some draft members. According to the combing of reporters, the opinions of members participating in the deliberations mainly focused on investor protection, the implementation of the revised Securities Law, some issues related to exchanges, and some basic definitions in the amendments to the securities law.

Further discussion on "basic definition"

Reporters combed a number of members in the group's deliberations, we learned that we have basically reached a consensus on the adoption of the securities law.

As Ouyang Changqiong said, the revision of the securities law lasted nearly five years, and it passed the twelve and thirteen two National People's Congress. After three deliberations, this is the fourth deliberation of the Standing Committee. After many deliberations, amendments and improvements, the four peer review has been relatively mature. After the three trial, the Finance Committee and the Constitutional Law Commission carried out a special investigation on the revision of the securities law, and organized a special discussion on the major issues in the revision process, the finance and Economic Commission, the Constitution Law Committee and the Law Commission. The relevant opinions and suggestions have been accepted in the four review. In order to guarantee the deepening reform and popularization and implementation of registration system, it is suggested that this standing committee meeting deliberate and adopt and accelerate the implementation.

Liu Xinhua, vice chairman of the finance and Economic Committee of the National People's Congress, said that he agreed with the amendments to the fourth draft of the securities law. The revision of the four draft of the securities law was compared with the previous three draft. The strength, depth and scope of the revision were relatively large, especially in terms of the legalization of registration system, the establishment of a new litigation system, the improvement of penalties, the necessary extraterritorial application of the securities law, and the protection of the legitimate rights and interests of investors. I think the amendment is consistent with the current situation of the capital market, and has a positive role in promoting the development of the capital market. Therefore, it is recommended that the implementation be implemented as soon as possible.

Although consensus was reached on the adoption of the proposed revised draft, members of the committee who participated in the deliberations put forward their own proposals for many of the four draft reviews, a large part of which involved discussions on the definition of the foundation.

Wang Xiaojie, deputy to the National People's Congress, suggested expanding the scope of securities in the revision of the securities law. She suggested expanding the scope of securities and implementing functional supervision, extending the scope of securities to all bonds, fund shares, related information management plan share, limited liability company equity and real estate investment trusts share.

Du Liming said that the deepening of the new three board reform is proceeding steadily in accordance with the requirements of the Party Central Committee and the State Council. After deepening the reform, the new three board market can be implemented to the public offering of a specific object, and the stock is allowed to continue to bid for the transaction. Although the name is not a securities exchange facility, it already has all the characteristics of the stock exchange's open, open, centralized trading and so on. Therefore, as the basic law of the securities market, the Securities Law suggests that the new three boards and stock exchanges be unified as "the securities exchange place approved by the State Council". This concept covers the stock exchange and the new three board market, and integrates the relevant subjects and behaviors in the legal level.

Committee member Liu Xinhua directly raised the question of competition and cooperation under the registration of exchanges. He pointed out that we should pay close attention to and handle the relationship between exchanges. Four the situation stipulated in the review is that the stock exchange is not only a statutory subject of issuance audit, but also a market organizer for securities transactions in accordance with the law. It does not exclude the possibility of conflict between social public interest and exchange market decisions. Although the regulatory department finally fulfills the registration system procedure, in the case of the registration system in Shanghai and Shenzhen stock exchanges, we should pay more attention to how to prevent the exchange from attracting more listing resources and reducing the audit standards in the process of auditing.

Focus on investor protection

In the process of combing the reporters, we found that the members who participated in the deliberations attached great importance to the topic of investor protection. From different levels, we proposed that we should continue to increase investor protection and further implement the contents related to investor protection at the legislative level.

The reporter understands that at present, there are third provisions in ninety-fifth of the four reviewers: "the investor protection agency is entrusted by more than fifty investors, and can participate in the litigation as a representative. The right holder who has been confirmed by the securities registration and clearing institution is registered with the court, but the investors explicitly indicate that they are unwilling to participate in the litigation."

Many market participants believe that this provision not only embodies the core elements of class action, but also effectively prevents the occurrence of collective risk in collective action. It embodies Chinese characteristics and provides a legal basis for the early play of the leading role of Investor Protection Agency as a litigation agent.

But when Li Yuefeng deliberated in groups, he suggested that we should further improve the class action system. He said that the reform of the registration system was a "deregulation" in the issuance of securities, which means that we must strengthen the supervision of the back-end so as to safeguard the integrity and fairness of the securities issuance activities. From the overseas experience, setting up a special civil litigation system, especially the class action system, is an important system for the capital market to relax the front-end regulation and strengthen the supervision of the back-end. It can effectively alleviate the market contradictions and make up for the losses of investors, especially small and medium-sized investors.

He added that from the current situation, the investor protection agency mainly refers to the two main bodies of the small and Medium Investors Service Center and the securities investor protection fund company. The survey found that some units reflected that if the law allowed only the investor protection agency to act as the representative of the lawsuit, it might cause some adverse effects. From the perspective of the current securities market, institutional investors, such as the relevant management companies established by the Securities Investment Fund Act, are more important subjects. They are very familiar with the securities market and can also assume the work of the representatives of the litigation.

Therefore, Li Yuefeng suggested that in the design of class action system, it should also act as representative for other investors such as institutional investors and so on.