China's securities regulator said Friday it would establish an independent committee to approve listings for the growth enterprise market (GEM) which would start operation as of May 1.
The committee will include 35 members. Five members will come from the China Securities Regulatory Commission (CSRC), the regulator, and the remainders from the accounting, law and other sectors, according to a CSRC circular.
"The GEM has differences from main boards such as company qualifications, information disclosure and supervision. An independent committee is thus necessary," the circular said.
Approval committee members selected for the GEM are not allowed to take any positions from the main board approval committees so as to maintain independence, according to the circular.
The CSRC also extended a probation period from two years for the main bourses to three years for the GEM, given companies on the GEM usually had "smaller scales and higher risks," the CSRC said.
(Xinhua News Agency April 19, 2009)
