Pages

12.30.2008

Draft CL amendments - Article 180 (1) (4) insider trading

Art. 180 par. 3 of the Criminal Law punishes insider trading of information related to securities. The draft amendments include also futures in the current provisions, and add a paragraph to punish other unlawful trading activities of personnel of financial institutions.

Article 180
Any insider who possesses inside information about any stock exchange, [futures] transactions or anyone who illegally obtains such information, prior to the publication of the information that concerns stock , [futures] issuing or exchange or that has a vital bearing on the stock, [futures] price, buys or sells the very stock, [carries out futures transactions related to inside information] , divulges the very information [or suggests a third party to carry out any of the above-mentioned transactions] shall, if the circumstances are serious, be sentenced to fixed-term imprisonment of not more than five years or criminal detention and shall also, or shall only, be fined not less than one time but not more than five times the illegal gains; if the circumstances are especially serious, he shall be sentenced to fixed-term imprisonment of not less than five years but not more than 10 years and shall also be fined not less than one time but not more than five times the illegal gains.
[Proposed amendment 证券、期货交易内幕信息的知情人员或者非法获取证券、期货交易内幕信息的人员,在涉及证券的发行, 证券、期货交易或者其他对证券、期货交易价格有重大影响的信息尚未公开前,买入或者卖出该证券,或者从事与该内幕信息有关的期货交易,或者泄露该信息,或 者建议他人从事上述交易活动,情节严重的,处五年以下有期徒刑或者拘役,并处或者单处违法所得一倍以上五倍以下罚金;情节特别严重的,处五年以上十年以下 有期徒刑,并处违法所得一倍以上五倍以下罚金]
Where a unit commits the crime as mentioned in the preceding paragraph, it shall be fined, and the persons who are directly in charge and the other persons who are directly responsible for the crime shall be sentenced to fixed-term imprisonment of not more than five years or criminal detention.
The range of inside information shall be determined in accordance with the provisions of laws or administrative rules and regulations.
The range of insiders shall be determined in accordance with the provisions of laws or administrative rules and regulations.
Any employee of a fund management company, a security company, commercial bank or any other financial institution who takes advantage of his office to obtain operational information different from insider information and that has not been made public yet, carries out transactions related to it or proposes a third party to carry out any such transaction shall, if the circumstances are serious, be punished according to provisions under paragraph 1.
[基金管理公司、证券公司、商业银行或者其他金融机构的工作人员,利用因职务便利获取的内幕信息以外的其他未 公开的经营信息,违反规定,从事与该信息相关的交易活动,或者建议他人从事相关交易活动,情节严重的,依照第一款的规定处罚]
Translation courtesy CECC

Comments

Fanxulitai.

Stated that the current financial crisis made everybody understand that stocks and futures are not the only financial products, therefore article 180 should cover insider trading related to other financial products as well.


Zhang Shaoqin.

Proposed to add state personnel to the offenders punishable under article 180.