Zhongxin Finance, January 21st. The Supreme People's Court WeChat official account reported on the 21st that in order to further protect the legitimate rights and interests of investors, unblock the channels for investor rights relief, and strictly crack down on illegal activities such as financial fraud in the securities market, the "Supreme People's Court" Several Provisions on the Trial of Civil Compensation Cases for Misrepresentation Infringements in the Securities Market, which were adopted at the 1860th meeting of the Judicial Committee of the Supreme People's Court on December 30, 2021, and will come into force on January 22, 2022.
The "Regulations" focus on the application of law in the acceptance and trial of cases by the people's courts after the cancellation of the pre-procedures for the acceptance of false representation cases by the people's courts, and refine the constituent elements of civil compensation liability for securities misrepresentation, including subjective fault, misrepresentation, major Sex, transaction causation, loss causation and loss calculation, statute of limitations and other issues.
In addition, the "Regulations" also clarified the civil compensation liability of the relevant subjects in the event that the controlling shareholder and the actual controller organize financial fraud, the counterparty's financial fraud in the merger and reorganization of listed companies, and the financial fraud of the listed company's business related parties. Pursuing the first evil and "fighting accomplices" simultaneously refers to the stubborn disease of financial fraud in the capital market, and increases the illegal cost of those who violate the law in accordance with the law.
According to reports, the Supreme People's Court and the China Securities Regulatory Commission will simultaneously issue a joint notice to provide professional support for the trial of the people's court and the CSRC's professional support, case investigation, etc. Connecting arrangements have been made to better protect the legitimate rights and interests of investors.