(Sept 30): China’s securities regulator plans to triple cash rewards for whistleblowers, offering payouts of up to 1 million yuan (RM590,0000) for tips on serious market misconduct as Beijing steps up efforts to strengthen oversight and bolster investor confidence.
Under the proposal, the China Securities Regulatory Commission plans to lift the reward payouts to 3%, from 1%, of the value of fines and confiscations from each case. The maximum reward for providing leads on major violations will increase to 500,000 yuan from 100,000 yuan. The top payout for cases with “nationwide impact, exceptionally large sums, or insider reporting” will be unified at 1 million yuan, up from the previous caps of 300,000 yuan and 600,000 yuan, according to a statement Tuesday.
CSRC said the proposed rule change is in response to market calls to strengthen regulatory oversight in the country’s capital markets by building a stronger “whistleblower culture”, encouraging insiders to come forward with information on market wrongdoings.
The watchdog is inviting public comments on the proposed rewards revamp before the rules are finalised. Responses are due Oct 30.
China’s financial regulators have vowed to crack down on misconduct in recent years as they seek to ensure market stability and reduce financial risk. Bloomberg News reported earlier they are considering a number of cooling measures for the stock market as they grow concerned about the speed of a US$1.2 trillion (RM5.05 trillion) rally since the start of August.