Yesterday, the Disciplinary Committee under the Shenzhen Stock Exchange decided after full deliberation to deliver public denunciation to three local listed companies and their related controlling shareholders, directors, supervisors and top management. The move also signaled the formal operation of the newly-established committee.
Sources with the SZSE said the Disciplinary Committee is responsible for making decisions on disciplinary penalties extended to non-compliant companies, members and related personnel and its setup also marks the efforts of the bourse to improve the self-discipline supervisory mechanism and further reinforce crackdown on all sorts of securities-related irregularities and illegal activities.
The committee is made up of 20 members selected from senior management, supervisory body of listed companies, member management body, legal and other business departments of the bourse.
The new disciplinary mechanism embodies the principle of separation of investigation from review, which forms the effective cohesive and checks between internal investigation and punishment authorities and promotes fairness and the transparency of the decision-making process.
