The Research Of Non-Listed Public Corporation Information Disclosure Regulations

With the establishment of the National Equities Exchange and Quotations (hereinafter referred to as "NEEQ"), the first national OTC market is already beginning to take shape in China. The OTC market is gaining momentum due to a vital platform for stock issuance and transaction in public among non-listed public corporations, as well as becoming a more significant part of multi-level capital market in China. NEEQ, as an important financing channel of small and medium-sized enterprises, contributes a lot to the economic growth in China, meanwhile, it should pay more attention to the investor protection and maintenance of market order. The key to achieve this goal is to develop relatively sound information disclosure regulations. A number of regulations that issued by China Securities Regulatory Commission (hereinafter referred to as "CSRC") and NEEQ provide guidelines of information disclosure in the non-listed public corporations. However, deficiencies still exist owing to the high risk of equity trading among non-listed public companies and the imperfect information disclosure system.At the beginning of this essay, it gives a general description of information disclosure system in the non-listed public corporations. Then it is aimed at researching the information disclosure system from four sections utilizing two scientific research methods-comparative analysis and normative analysis. Finally, several recommendations are made as to help solve the problems existed in the information disclosure system and come to the conclusion.The first section describes the related concepts of non-listed public corporations. It analyses the necessity and specialty of information disclosure system combing with corresponding regulations or laws that put forward by CSRC and NEEQ. Then it demonstrates the significance of information disclosure when these non-listed public corporations issue new shares and transfer stocks in public. Furthermore it proposes profound meaning of the information disclosure system.Following the first section, information disclosure regulations of OTC market in the UK and the US are been compared in the second part. The comparisons between the OTCBB market in the US and the PLUS market in the UK are mainly from three aspects-legislation system, regulatory system and system design. The great senses of information disclosure rules in Chinese non-listed public companies are summarized from the contrast.Afterwards, the rules of the information disclosure in non-listed public companies are deeply illustrated in the third section. It firstly epitomizes the legal basis of the system. Then, according to the relevant laws and regulations, it researches the obligation subjects and disclosure contents of non-listed public companies. In order to address the problems that companies faced such as issuing new shares and transferring stocks publicly, it raises a claim that should be strictly observed by all non-listed public companies.Finally, a series of suggestions are offered to improve the existing information disclosure regulations in the last part according with the main contents, disclosure criteria, as well as the problems. It is indented to build up a hierarchy of perfect and multi-level information disclosure regulations and set up differentiated information disclosure standards, moreover, specify the information disclosure rules of market maker.