Prohibition

(a) In general An index fund may not invest in a Chinese company. (b) Divestment period safe harbor With respect to an index fund with an investment in a Chinese company on the date of enactment of this Act, subsection (a) shall not apply to such investment during the 180-day period beginning on the date of enactment of this Act. (c) Civil penalty Any person who violates this section shall be subject to a civil penalty in an amount not to exceed the greater of— (1) $250,000; or (2) an amount that is twice the amount of the transaction that is the basis of the violation with respect to which the penalty is imposed. (d) Rulemaking The Securities and Exchange Commission may issue such rules as may be necessary to carry out this section.