New restrictions have been imposed on former regulatory personnel and management personnel from subsidiary entities regarding their investment in pre-IPO companies by the China Securities Regulatory Commission (CSRC), based on an article posted on its official Wechat account today.
The new rules have incorporated the main content of the previous guideline, namely "Guideline No. 2," and have introduced three additional provisions which include extension of the prohibition period for former employees to acquire shares . For those who have left positions in regulatory or association management departments, the shareholding prohibition period has been extended to 10 years.
Stock exchanges are tasked with clarifying these policies and guiding prospective issuers and intermediaries through the new regulatory landscape to ensure compliance.
