The Securities Regulatory Commission recently issued the “Implementation Rules for Administrative Penalties in Cases of Illegal Transfer of Securities”, which will take effect on December 1 this year. The new regulations use 18 rules to refine the criteria for determining illegal holdings reduction, unify penalty discretion scales, classify policies, and accurately determine responsibilities, clearly conveying the direction of strict supervision and precise enforcement of the law to the market. Specifically, the biggest highlight of this new regulation is to say goodbye to “vague discretion” and achieve precise and standardized supervision. In previous cases, many times, people will find that the situation of major shareholders and actual controllers reducing their holdings in violation of regulations is very complicated. There is room for flexibility at the time of determination, and there are inevitably differences in the scale of discretion, making the market unstable in grasping regulatory expectations, and the effect of deterring illegal violations will be reduced. This new regulation scientifically divides illegal securities transfers into four categories, distinguishing between situations such as illegal transfers of original shares, breaking the lockdown period, reducing the amount of holdings and disclosing non-compliance, and failure to suspend transactions as required; supporting differentiated discretionary levels, setting a double index of “illegal transfer ratio+amount” to achieve “one scale to the end”; it not only avoids disputes over the scale of penalties, but also sets a higher penalty limit on illegal offense holdings reduction of the most harmful illegal shares, and truly allows the cost to match the risk That is, as I just mentioned, it must reflect “strict supervision and precise enforcement of the law ” Guided by the principle.