China Approves Heavier Penalties on Capital Market Violations

(Bloomberg) -- China will increase penalties for fraudulent issuance of securities and other capital market violations from next year.

The maximum prison sentence will rise to 15 years from five, under an amendment to criminal laws approved in a meeting of Standing Committed of National People’s Congress on Saturday, China’s securities regulator said in a statement. The amendment will take effect from March 1.

For disclosing false information, the maximum sentence will change to 10 years from three, and an upper limit of a 200,000 yuan ($30,572) fine is removed, the China Securities Regulatory Commission said.

China will also impose a maximum 10-year imprisonment on lawyers and accountants for fraud in securities issuance and significant transactions, it said.

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