The Shanghai Stock Exchange (SSE) has intensified the special training on prevention and control of insider dealing in the recent qualification and follow-up training for secretaries to directorates and independent directors of listed companies, since the insider dealing has become one of the major obstacles to the sound development of the capital market. The bourse aims to enhance the senior executives' prevention awareness to crack down on insider dealing from the source.
Fighting insider dealing and stock price manipulation are essential to the frontline supervision of the securities market. As one of the key links in the comprehensive prevention and control system for violations such as insider dealing, the SSE has attached great importance to integrating the internal supervision resources and cooperating with the external regulatory authorities, showing its determination in fighting violations and achieving positive results. In recent years, the SSE has played an important role in investigating and dealing with a number of major insider dealing cases thanks to the great improvement in its supervision capability, response speed as well as examination and handling efficiency.
Apart from taking resolute action against the insider dealing in the frontline supervision, the SSE also imperceptibly spread the knowledge of insider dealing prevention in its routine market services on various occasions and by various ways to the market participants who might become the insiders, in the hope that they will realize the futility of the violations' escape from the whole-process supervision and severe punishment of regulators. Most of all, the bourse has highlighted the training for listed companies' senior executives and strengthened the precaution to rule out the opportunistic psychology by explaining the harm and consequence of insider dealing.
For years, the SSE has laid emphasis on the supervision of trading and abnormal fluctuation of stock prices in the qualification and follow-up training for listed companies' secretaries to directorates and independent directors. It has recently enhanced the special training on prevention and control of insider dealing regarding the current negative influence of the insider dealing on the sound development of the capital market. At the just-concluded 2nd follow-up training for independent directors of listed companies and qualification training for secretaries to directorates of to-be-listed companies in 2010, the experts effectively gave systematic and in-depth explanation through specific cases to relevant laws and regulations of insider dealing, the consequences and harm of insider dealing, the insider information management, the supervision measures of the regulatory authorities on the insider dealing, relevant regulations on selling and purchasing shares in listed companies by their controlling shareholders and actual controllers, and the standardized operation of listed companies.
The SSE said that it would continuously emphasize relevant education of preventing insider dealing in the training for listed companies to raise their prevention awareness and upgrade their standardized operation. Meanwhile, it will further popularize the ideas of strengthening insider information management, avoiding insider dealing and participating in the capital market operation according to law in its market services of IPO, refinancing as well as merger, acquisition and reorganization to promote the sound, stable and orderly development of the capital market.
