BEIJING -- The revised Securities Law, adopted by the top legislature in late 2019, will go into effect on Sunday, a milestone in the country's capital market reform.

With 14 chapters, the revised Securities Law outlines regulation details in securities issuance and trading, the takeover of listed companies, information disclosure and investor protection, among others.

The new law highlights rules on the newly-devised science and technology innovation board, which will pilot a registration-based initial public offering (IPO) system.

Under the current IPO system, new shares are subject to approval from the China Securities Regulatory Commission before being listed.

Another major revision is the strengthened protection of investors, especially small and individual investors. The law sets a general framework to encourage small and individual investors to take the initiative in class action lawsuits and introduces compensation in civil litigations.

The new law also increases the penalties for illegal activities in the securities sector. It not only stipulates the confiscation of illegal proceeds but also pledges stricter administrative punishments.