The newly revised Securities Law entered into effect on 1 March 2020. This is the fourth revision, comprehensively revising and improving it in terms of the securities offering system, registration system reform for stock offerings, greatly increasing the cost of securities law violations, enhancing investor protections, and strengthening information disclosure.
Change in recognition of acts
(1) Expansion and improvement of the scope of those in the know. The revised Securities Law expands the seven types of insiders specified in the former article 74 to the nine types in the current article 51, and additionally makes revisions to some of them.
The revised Securities Law expands the recognition scope that has the shareholders and working personnel of a listed company at its core. Article 51 of the revised Securities Law adds: (i) the issuer; (ii) persons who have access to insider information by virtue of their business dealings with the company; and (iii) the acquirer of a listed company or a party involved in a material asset transaction with it and its controlling shareholder, actual controller, directors, supervisors and senior executives, thereby expanding the scope of insiders to the issuer itself and the counterparty in a material transaction.
