The first reason why the CSRC stipulates the investigation time of illegal listed companies is that the law does not clearly stipulate how long it will take for the CSRC to produce results after filing an investigation. The second reason is also related to the illegal matters involved. If the matter is particularly complicated, it may take longer to investigate. Lutianhua was the fastest, bearing fruit in more than two months. The slowest is Baoshuo shares, which took 8 years from filing an investigation to the result. In recent years, most cases have been investigated within a year or so.
In the cases where listed companies are put on file for investigation, most of them will eventually be subject to administrative punishment, and only a few of them are found not to constitute violations.
Legal basis: Article 193 of the Securities Law of People's Republic of China (PRC). If a listed company or other information disclosure obligor fails to disclose information as required, or the disclosed information contains false records, misleading statements or major omissions, the securities regulatory body shall order it to make corrections, give it a warning and impose a fine of not less than 300,000 yuan but not more than 600,000 yuan. Give a warning to the directly responsible person in charge and other directly responsible personnel, and impose a fine of more than 30,000 yuan and less than 300,000 yuan.
If an issuer, listed company or other information disclosure obligor fails to submit relevant reports in accordance with the regulations, and the reports submitted contain false records, misleading statements or major omissions, the securities regulatory body shall order it to make corrections and impose a fine of not less than 300,000 yuan but not more than 600,000 yuan. Give a warning to the directly responsible person in charge and other directly responsible personnel, and impose a fine of more than 30,000 yuan and less than 300,000 yuan.