Recently, Shenzhen Stock Exchange officially release Standards for Public Condemnation on Companies Listed on SME Board (hereinafter is referred as SME Standards for Public Condemnation), which defines the standards for actions that elicit public condemnation on companies listed on SME Board. The Standards, which will come into effect immediately, further improve the mechanism of discipline punishment, self-discipline, supervision and law enforcement.
Relevant principal from SZSE indicates that, SME Standards for Public Condemnation, incorporated with the practices of supervision over and management of SME Board, is formulated on the basis of Standards for Public Condemnation on Companies Listed on ChiNext Board. SME Standards for Public Condemnation drew keen attention and energetic participation from listed companies, receiving almost a hundred of feedbacks from listed companies for opinions soliciting. After the closing of opinion soliciting, SZSE organized relevant departments to research and discuss about the opinions, and made further amendment and improvement on the basis of the rational opinions absorbed.
He stresses that SME Standards for Public Condemnation highlights the supervision over major violation actions, setting up different punishment standards for different types of violation actions, so as to guarantee the pertinence and operability of punishment standards. Firstly, explicit punishment standards are set up for capital embezzlement, illegal guarantee, and illegal use of raised fund. The power of supervision is guarantee; secondly, specific regulations are formulated on violated disclosure on major issues and violated periodical disclosure of the public companies to curb and regulate these actions; thirdly, given the scale of companies listed on SME Board, indicators triggering the violation actions are set on the basis of estimation of specific data.
In order to fully protect the legal rights and interests of the interested parties, SZSE also issue Rules on Hearing on SZSE Discipline Punishment to safeguard the fairness of discipline punishment. Meanwhile, SME Standards for Public Condemnation also specially specifies the reexamination mechanism, i.e. those listed companies, which are unconvinced of the public condemnation made by SZSE, may apply for reexamination to SZSE within 15 days since it received the punishment notice.
The principal also points out that, the release of SME Standards for Public Condemnation is an important measure of enhancing the transparency of supervision over listed companies. As a trial and exploration, SME Standards for Public Condemnation only apply to the public condemnation on public companies, excluding the circular condemnation on the companies listed on SME Board, and discipline punishment of other parties such as shareholders, de facto controller, directors, supervisors, senior managements.