Learn Chinese: Learn Mandarin online - Securities Law of the People's Republic of China (revised in 2005)

BIZCHINA / Finance

Securities Law of the People's Republic of China (revised in 2005)

Updated: 2006-04-18 08:56

Article 217 Where a securities company fails to start its business within
3 months after establishment without any justifiable reason, or suspends
its business for a consecutive 3 months, the organ in charge of
corporation registration shall revoke the business license of the company.

Article 218 Where a securities company violates the provisions of Article
129 of the present Law by unlawfully establishing, purchasing or revoking
any branch, or unlawfully going through any merge, split-up, business
suspension, dissolution or bankruptcy, or establishing, purchasing a
securities operation institution abroad or purchasing the shares of a
securities operation institution abroad, it shall be ordered to correct.
The illegal proceeds shall be confiscated and a fine of 1~5 times of the
illegal proceeds shall be imposed. Where there is no illegal proceeds or
the illegal proceeds is less than 100,000 yuan, a fine of 100,000 yuan up
to 600,000 yuan shall be imposed. The person-in-charge and any other
person directly responsible shall be given a warning and imposed a fine
of 30,000 yuan up to 100,000 yuan. Where a securities company violates
the provisions of Article 129 of the present Law by altering the relevant
items, it shall be ordered to correct and imposed a fine of 100,000 yuan
up to 300,000 yuan. The person-in-charge and any other person directly
responsible shall be given a warning and imposed a fine of no more than
50, 000 yuan.

Article 219 Where a securities company violates the present Law by
engaging in any securities operation beyond its business scope as
permitted, it shall be ordered to correct. The illegal proceeds shall be
confiscated and a fine of 1~5 times of the illegal proceeds shall be
imposed. Where there is no illegal proceeds or the illegal proceeds is
less than 300, 000 yuan, a fine of 300,000 yuan up to 600,000 yuan shall
be imposed. Under any serious circumstances, it shall be ordered to close
down. The person-in-charge and any other person directly responsible
shall be given a warning and imposed a fine of 30,000 yuan up to 100,000
yuan and the relevant post-holding qualification or securities practice
qualification shall be revoked.

Article 220 Where a securities company fails to carry out its securities
operation of brokerage, underwriting, self-operation or asset management
in a separate manner according to law but carries out its securities
operation in a mixed operation, it shall be ordered to correct. The
illegal proceeds shall be confiscated and a fine of 300, 000 yuan up to
600, 000 yuan shall be imposed. Under any serious circumstances, the
relevant business license shall be revoked. The person-in-charge and any
other person directly responsible shall be given a warning and imposed a
fine of 30,000 yuan up to 100, 000 yuan. Under any serious circumstances,
the relevant post-holding qualification or securities practice
qualification shall be revoked.

Article 221 Where a securities company submits any false document of
certification or adopts any other fraudulent means to conceal any major
fact so as to cheat for the securities business license or a securities
company has any severe irregularity in the securities trading and thus,
fails to meet the requirements of business operation any more, the
securities regulatory body shall revoke its securities business license.

Article 222 Where a securities company or its shareholder or actual
controller violates the relevant provisions by refusing to report or
provide information or materials regarding its business and management to
the securities regulatory body or in the case of any false record,
misleading statement or major omission in the aforesaid information or
materials as reported or submitted, it shall be ordered to correct, given
a warning and imposed a fine of 30, 000 yuan up to 300, 000 yuan. The
relevant business license of the securities company may be suspended or
revoked. The person-in-charge and any other person directly responsible
shall be given a warning and imposed a fine of no more than 30,000 yuan
and the relevant post-holding qualification or securities practice
qualification shall be revoked. Where a securities company provides
financing or guaranty for its shareholder or any person related to its
shareholder, it shall be ordered to correct, given a warning and imposed
a fine of 100, 000 yuan up to 300, 000. The person-in-charge and any
other person directly responsible shall be imposed a fine of 30, 000 yuan
up to 100, 000 yuan. Where a shareholder has any fault, the securities
regulatory authority under the State Council may restrict his
shareholders' right before he makes correction according to the relevant
requirements. Where anyone refuses to correct, he may be ordered to
transfer the stock right of the securities company as held thereby.

Article 223 Where a securities trading service institution fails to
fulfill its accountability in a diligent manner so that any document as
formulated or produced thereby has any false record, misleading statement
or major omission, it shall be ordered to correct. The proceeds as
generated from its business shall be confiscated. Its securities business
license shall be suspended or revoked. A fine of 1~5 times of its
business income shall be imposed. The person-in-charge and any other
person directly responsible shall be given a warning and imposed a fine
of 30,000 yuan up to 100, 000 yuan and the relevant post-holding
qualification or securities practice qualification shall be revoked.

Article 224 Where anyone violates the present Law by issuing or
underwriting any corporate bond, he shall be given a punishment by the
department as authorized by the State Council in accordance with the
relevant provisions of the present Law.

Article 225 Where a listed company, securities company, stock exchange,
securities registration and clearing institution, or securities trading
service institution fails to keep the relevant documents and materials
according to the relevant provisions, it shall be ordered to correct,
given a warning and imposed a fine of 30, 000 yuan up to 300, 000 yuan.
Where any relevant document or material is concealed, forged, altered or
damaged, the violator shall be given a warning and imposed a fine of 300,
000 yuan up to 600, 000 yuan.

Article 226 Where a securities registration and clearing institution is
unlawfully established without any approval of the State Council, it
shall be cancelled by the securities regulatory body, the illegal
proceeds shall be confiscated and a fine of 1~5 times of the illegal
proceeds shall be imposed. Where an investment consulting institution,
financial advising institution, credit rating institution, asset
appraisal institution or accounting firm undertakes any securities
trading service without the relevant approval, it shall be ordered to
correct. The illegal proceeds shall be confiscated and a fine of 1~5
times of the illegal proceeds shall be imposed. In case a securities
registration and clearing institution or a securities service trading
institution violates the present Law or any operational rules as
formulated according to law, the securities regulatory body shall order
it to correct and confiscate the illegal proceeds and impose it a fine of
1~5 times of the illegal proceeds. Where there is no illegal proceeds or
the illegal proceeds is less than 100, 000 yuan, a fine of 100, 000 yuan
up to 300, 000 yuan shall be imposed. Under any serious circumstances, it
shall be ordered to close down or its securities business license shall
be revoked.

Article 227 Where the securities regulatory authority under the State
Council or the department as authorized by the State Council is in any of
the following circumstances, the person-in-charge and any other person
directly responsible shall be given an administrative sanction according
to law:
(1) Verifying or approving an application for issuing securities or for
establishing a securities company, which fails to comply with the present
Law;
(2) Violating the provisions of Article 180 of the present Law by taking
such measures as on-the-spot examination, investigation and evidence
collection, consultation, freeze-up or seal-up;
(3) Violating the relevant provisions by giving any administrative
sanction to the relevant institution or personnel; or
(4) Performing any other functions and duties in an unlawful manner.

Article 228 Where any functionary of the securities regulatory body or
any member of the issuance examination committee fails to perform the
duties and functions as prescribed in the present Law, misuses his power,
neglects his duty, takes advantage of his post to seek any unjust
interests or divulges any commercial secrete of the relevant entity or
individual as accessible in his performance, he shall be subject to legal
liabilities.

Article 229 A stock exchange that grants any approval to an application
for securities listing that fail to meet the requirements as prescribed
in the present Law shall be given a warning. Its business income shall be
confiscated and a fine of 1~5 times of its business income shall be
imposed. The person-in-charge and any other person directly responsible
shall be imposed a fine of 30,000 yuan up to 300,000 yuan.

Article 230 Anyone that refuses or obstructs the performance of the
securities regulatory body as well as its functionary on the functions
and duties of supervision, examination and investigation by no means of
violence or threat shall be given an administrative sanction of public
security according to law.

Page: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19

(For more biz stories, please visit Industry Updates)

Learn Chinese

Monday, December 17, 2007

Learn Mandarin online - Securities Law of the People's Republic of China (revised in 2005)

No comments:

How to

Favorite

Labels

Blog Archive