people who are prohibited by laws and administrative regulations from participating in stock trading are prohibited from holding or buying or selling stocks. Those who violate similar regulations should be punished, and the securities practitioners should be punished as follows:

According to Article 199 of the Securities Law of the People's Republic of China,

Those who are prohibited from participating in stock trading, directly or under a pseudonym or in the name of others, are ordered to deal with the illegally held stocks according to law, confiscate the illegal income and impose a fine below the equivalent of buying and selling stocks; Those who belong to state functionaries shall also be given administrative sanctions according to law.

What is the punishment for stock financial fraud

The severe punishment expected by investors for serious illegal and untrustworthy behaviors such as financial fraud has not arrived. After Nanfang Co., Ltd. was fined only 5, yuan for financial fraud of 34 million yuan in five years, Xinzhongji also issued a penalty announcement on the evening of July 8, and was fined 4, yuan for accumulating inflated net profit of 22 million yuan from 26 to 211.

severe punishment breaks the promise once again, and forced delisting is even more out of the question. The honest judicial order in the capital market, which is constructed by nearly 1 laws, regulations, rules, judicial interpretations and judicial policies covering all aspects of civil, administrative and criminal justice, is facing a crisis of trust.

"It is stipulated by law, although similar punishment seems to be a felony, it is already a top punishment." Perhaps, the management also has hardships in the face of strong public opinion, so it can't break through the existing legal provisions. Managers who have the right to formulate, implement and apply legal rules should not only be responsible for following the rules applicable to their operations, but also be consistent with the actual implementation of the law, and conform to the "legal interests" of the law to achieve or approach the legislative purpose. For the regulators of the A-share market, how to make their law enforcement behavior as close as possible to the original intention of legislation in the case that the existing legal system is inherently inadequate in legislation and ineffective in punishment is the key consideration before closing each illegal case.

Take serious financial fraud and other major securities violations as an example. The current Securities Law and other laws and regulations do stipulate the penalties for them in a rough way, and the stipulated illegal costs are slight, which is also the reason why several cases have caused great social disputes so far. However, this does not mean that the management can't enforce the law flexibly to the maximum extent under the existing legal framework, so as to deter selective violations to the maximum extent.

For example, the above-mentioned financial fraud or information disclosure violations can be considered as major violations by the CSRC at the time of punishment according to the circumstances, and the Exchange will decide to suspend the listing of relevant illegal companies according to the Stock Listing Rules, which may lead to the risk of suspension of listing due to major violations, thus increasing the illegal cost of enterprises and achieving the law enforcement purposes of severely punishing violations, preventing violations and maintaining legal seriousness to a certain extent.

of course, in order to realize the ultimate appeal based on the justice of law, the management should focus on "emergency legislation" in addition to "flexible law enforcement" to restore the public's trust in the law or its enforcement. According to the current revision plan of the Securities Law, the revision of the Securities Law involves many matters and it is difficult to be promulgated in a short time. Since the revision of the Securities Law cannot be completed overnight, and the relevant illegal acts that shake the fundamental market are repeatedly banned, which has aroused public anger, we can't wait for the revision of the Securities Law and condone the serious illegal acts, but should actively seek the relevant competent departments to amend or explain the law.

Specifically, we can seek the National People's Congress Standing Committee (NPCSC) to combine the ongoing delisting system reform with the Securities and Futures Commission, and issue "interim provisions" or "legislative explanations" to increase penalties for serious financial fraud, misleading statements, major omissions and other behaviors that investors strongly reflect and shake the capital market, and stipulate that major securities violations such as serious financial fraud will be forcibly delisted. Directors, supervisors, senior managers and employees of professional institutions who are mainly responsible or professionally responsible for serious securities violations shall be banned from the market for life and investigated for criminal responsibility, with a minimum term of imprisonment of more than three years, in addition to assuming civil liability according to law, and shall be executed before the revision of the Securities Law is completed.

What behaviors in stock trading are illegal penalties

Article 74 of China's Interim Regulations on the Administration of Stock Issuance and Trading stipulates that any unit or individual who violates the provisions of these regulations and commits one of the following behaviors shall be given a warning, confiscated illegally obtained stocks and other illegal gains and fined separately or concurrently according to different situations:

1. Trading stocks outside the securities trading places approved by the Securities Commission;

2. In the process of stock issuance and trading, making false and seriously misleading statements or omitting important information;

3. manipulating market prices through collusion or pooling funds, or influencing stock issuance and trading by spreading rumors;

iv. colluding with others to make false prices of stocks, not transferring the ownership or actual control of stocks, or buying and selling stocks falsely;

5. selling or offering to sell stocks that it does not hold, disrupting the order of the stock market;

VI. extorting or forcibly buying or selling stocks by taking advantage of authority or other improper means, or assisting others to buy or sell stocks;

VII. Trading options and futures of stocks and their indices without approval;

VIII. Failing to fulfill the obligation of reporting, making public and publishing relevant documents and information in accordance with regulations;

9. Forge, tamper with or destroy business records, property account books and other documents related to stock issuance and trading;

1. Other illegal stock issuance and trading activities.

How to punish stock financial fraud

Suspected bill fraud should be dealt with according to law. Article 194 of the Criminal Law stipulates that whoever commits financial bill fraud in any of the following circumstances, if the amount is relatively large, shall be sentenced to fixed-term imprisonment of not more than five years or criminal detention, and shall also be fined not less than 2, yuan but not more than 2, yuan; If the amount is huge or there are other serious circumstances, he shall be sentenced to fixed-term imprisonment of not less than five years but not more than ten years, and shall also be fined not less than 5, yuan but not more than 5, yuan; If the amount is especially huge or there are other especially serious circumstances, he shall be sentenced to fixed-term imprisonment of not less than 1 years or life imprisonment, and shall also be fined not less than 5, yuan but not more than 5, yuan, or his property shall be confiscated:

(1) knowingly using forged or altered bills of exchange, promissory notes or checks;

(2) knowingly using bills of exchange, promissory notes or checks that are invalid;

(3) fraudulently using other people's bills of exchange, promissory notes or checks;

(4) fraudulently obtaining property by issuing a blank cheque or a cheque inconsistent with its reserved seal;

(5) the drawer of a bill of exchange or a promissory note issues a bill of exchange or a promissory note without capital guarantee, or makes false records at the time of issuing the bill to defraud money or property.

anyone who uses forged or altered certificates of entrusted collection, remittance certificates, bank deposit certificates and other bank settlement certificates shall be punished in accordance with the provisions of the preceding paragraph.