THE securities regulator has blacklisted six executives for their role in a US$4.2 billion accounting scandal at Kangmei Pharmaceutical Co., one of China’s biggest drugmakers.

The ban includes Kangmei’s chairman at the time and five others, who won’t be allowed to participate in the securities market or take positions as executives or board members at any listed company for at least 10 years.

The China Securities Regulatory Commission (CSRC) also ordered the company, a producer of traditional Chinese medicines, to pay a 600,000 yuan (US$84,510) fine.

CSRC Chairman Yi Huiman said the regulator would spare no efforts in cracking down on financial fraud at listed companies, according to a China Central Television report Friday.

After a months-long regulatory probe into its finances, Kangmei said in May last year that it had overstated its cash positions by 29.9 billion yuan by using false documents and transaction records — an amount one lawyer said was unprecedented in China. The firm admitted to “serious” deficiencies in its corporate governance and internal controls.

Under China’s previous securities law, the maximum fine for securities violations was 600,000 yuan. Penalties were increased significantly with a new law implemented in March: the maximum punishment for wrongful information disclosure at listed companies is now 10 million yuan. (SD-Agencies)