BEIJING -- The National Equities Exchange and Quotations (NEEQ), also known as the New Third Board, has detailed new rules on terminating listings on the exchange as part of its efforts to improve exit mechanism and protect investors.

The new rules, which became effective on Friday, specified altogether 12 circumstances under which companies will be forced to terminate listings, including unreliable information disclosure, major defects in corporate governance and violations of laws and regulations.

Measures aimed at better protecting the interests of investors are also improved for both forced and voluntary delistings, while conditions and procedures for voluntary delisting have been optimized.

For the next step, the NEEQ has pledged to continue to focus on improving the quality of listed companies.

The New Third Board was launched in early 2013 to supplement the Shanghai and Shenzhen stock exchanges to serve small and medium-sized enterprises.

It is seen as an easier financing channel for small businesses, with low costs and simple listing procedures.