The disciplinary body of the Communist Party of China (CPC) issued rules Monday to regulate the conduct of state-owned enterprise leaders, strictly banning them from insider trading and violating accounting rules.

The regulations specify punishments for various types of misconduct, in order to "correctly deal with" violations of CPC discipline and "uphold integrity" in state-owned enterprises, according to a circular from the CPC Central Commission for Discipline Inspection (CCDI).

State-enterprise leaders who embezzle state assets, ask for or receive bribes or illegally deal with state assets in order to seek profits for themselves and others, will be given a warning, removed from their posts, or have their party membership stripped, the rules say.

State-enterprise leaders are banned from seeking profits for themselves or others by using the advantage of their enterprises.

The rules state that they are forbidden to seek profits for themselves, spouses, children or "special parties" by using "inside information, commercial secrets, enterprises' intellectual property rights and business channels" during the listing, restructuring and additional stock issuance of their companies.

Those who "fabricate accounting reports," register new companies overseas, invest, buy shares or purchase real estate using their enterprises' capital but under the name of their own or others, will also face termination of their party membership, the rules say.

The rules say those who force accountants to violate financial disciplines, seek profits from related or partner companies, and purchase houses or cars at much-lower-than-market prices or sell them at much-higher-than market prices, will also be punished accordingly.

Other illegal acts for state-enterprise leaders include holding unauthorized positions in other enterprises or institutions, misappropriating commissions, cash gifts or premiums belonging to enterprises, entrusting, leasing or contracting state assets to their spouses, children or other "concerned parties," allowing family members and those concerned to invest in the leaders' companies, and offering opportunities to family members and those concerned in business by using authority.

State-enterprise leaders are forbidden to take posts, within three years after leaving their official post or retirement, in private and foreign-funded companies as well as intermediary agents which have business contact with their own enterprises, the rules say.

They are banned from inclusion of non-work expenditure in reimbursement, traveling at public expense, purchasing cars or high-end office facilities, furnishing offices when their enterprises are in deficit, and gaining positions, professional titles and other benefits by cheating.

State-company leaders will face penalties if they hold extravagant weddings or funerals that have a harmful social influence, help their spouses, children or subordinates to violate rules by using their positions, use public money to pay "recreational activities unrelated to work" or unnecessarily rent hotels for a long time, and infringe upon staff's legal rights and interests.

The CCDI also specifies distribution of allowances and subsidies in various levels of government departments, legislatures, political advisory bodies, courts, procuratorates and public institutions, which are funded by the Ministry of Finance.

Distribution of allowances and subsidies is a "grey" area susceptible to corruption as the money have many variations that used to escape surveillance.

The rules ban distribution of allowances through prepaid shopping cards or by simply handing out commodities instead of money.

Relevant officials would be punished if they use "small coffers" to distribute allowances. "Small coffers" refer to fund, securities and assets that should be but fail to be listed into the account books.

The number of corruption cases in state enterprises is increasing as these enterprises gain more power and money, Premier Wen Jiabao acknowledged at a national anti-corruption meeting on Monday, .

Wen said that public money can not be used for buying cigarettes, high-end liquor and gifts, and that "government expenditures in reception, vehicle purchase and maintenance, and overseas trips should be open to public scrutiny."

State-controlled enterprises should be forbidden to sponsor ceremonies, seminars and forums unrelated to business operations, Wen said.