Circular on Promulgating the Rules for Securities Companies Participating in Regional Equity Market Business
Circular on Promulgating the Rules for Securities Companies Participating in Regional Equity Market Business
Circular on Promulgating the Rules for Securities Companies Participating in Regional Equity Market Business
Zhong Zheng Xie Fa [2013] No.17
February 7, 2013
All securities companies:
For the purposes of regulating the securities companies' participation in regional equity market (hereinafter referred to as the "Regional Market"), the Securities Association of China (hereinafter referred to as the "SAC") has formulated the Rules for Securities Companies Participating in Regional Market Business (hereinafter referred to as the "Business Rules"), which is hereby promulgated upon deliberation and adoption by the general council of the SAC.
The securities companies proposed to participate in Regional Market shall file the relevant materials to the SAC for filing in accordance with the requirements as provided in the Business Rules, and the filing method is temporarily confirmed to be paper materials filing, and remote electronic filing will be adopted after the launch of the filing system. For Regional Market failing to complete the systemization and rectification work or pass the acceptance, securities companies may not participate in, and the SAC may not accept, the filing. Securities companies participating in the Regional Market shall adhere to the Business Rules, and do a good job in managing the eligibility of investors and establish the system on information barrier walls. In case of any material matters or issues run into by the securities companies in the course of participating in the Region Market, they shall timely report to the SAC.
Hereby notified the above.
Rules for Securities Companies Participating in Regional Equity Market Business
Chapter I General Provisions
Article 1 These Rules are formulated in accordance with the Guiding Opinions on Regulating the Securities Companies Participating in Regional Equity Trading Market (for Trial Implementation) (hereinafter referred to as the "Guiding Opinions (for Trial Opinions)") for the purpose of regulating the participation in the regional equity market (hereinafter referred to as the "Regional Market").
Article 2 These Rules shall apply to the investment and participation in Regional Market, or provision of recommending companies to go listing, equity or private placement bond transfer, directional equity financing, private placement bond financing, investment consultancy, registration settlement and other relevant services, by the securities companies.
Article 3 Securities companies participating in Regional Market shall have the qualifications and conditions corresponding with their operating businesses and as approved by the China Securities Regulatory Commission (hereinafter referred to as the "CSRC").
In case of recommending companies to go listing, securities companies shall be approved by the CSRC to engage in the securities undertaking and sponsorship businesses; in case of acting for the customers to purchase and sell products listed on the Regional Market, securities companies shall be approved by the CSRC to engage in securities brokerage business; and in case of carrying out other businesses, securities companies shall meet the relevant provisions of the CSRC.
Article 4 Securities companies participating in the Regional Market shall reasonably determine the quantity and region determined to participate, prepare the scheme for carrying out Regional Market business, and establish sound business rules, internal control system and risk prevention mechanism.
Securities companies participating in Regional Market shall comply with the laws and regulations as well as the relevant administrative rules and business systems of the Regional Market, and adhere to the principles of equality, willingness and good faith, and do a good job in risk control.
Securities companies and their business personnel shall practice diligently and prudently, and strictly comply with the code and ethnics of practice, and perform their obligations as required and agreed.
Securities companies shall establish the system on eligibility of investors corresponding with the Regional Market, fully disclose the risks to the investors, and may not infringe upon the legitimate rights and interests of investors.
Article 5 The Securities Association of China (hereinafter referred to as the "SAC") shall carry out self-regulation management for the participation in the Regional Market by securities companies in accordance with these Rules.
Chapter II Participation Procedure
Article 6 The participation in Regional Market by securities companies shall comply with the relevant provisions of the Guiding Opinions (for Trial Implementation) and evaluate whether the Regional Market proposed to participate meets the requirements as provided in the Guiding Opinions (for Trial Implementation), and then issue an evaluation report thereof.
Article 7 Securities companies proposed to participate in the Regional Market or become a member of the Regional Market shall submit the following materials to the SAC for filing:
1.
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