Regulators Say Cost for Fraudulent IPOs Shall Be Raised


By Securities Times

 Reportedly, at the regulatory training meeting heldrecently, some regulatory authorities made clear that current fraudulent IPOsonly involve low illegal costs, which shall be rectified and self-examined; illegalcosts for fraudulent IPOs and regulatory punishment standard shall be raised, andpersons involved in serious cases shall be investigated for criminal liabilities.

 

According to the above regulators, sponsor institutionsdid not “try hard and be vigilant” on fraudulent IPOs, because they failed tofully fulfill duties and keep sensitive for abnormalities. Next, regulatorswill strengthen regulations and investigations for internal control departmentof securities companies, and “inspection of law enforcement are inevitable topractitioners of the investment banking industry".

 

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