China Securities Regulatory Commission Decision On Amending The Regulation On Securities Registration And Settlement

Original Language Title: 中国证券监督管理委员会关于修改《证券登记结算管理办法》的决定

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Read the untranslated law here: http://www.chinalaw.gov.cn/article/fgkd/xfg/gwybmgz/201004/20100400253044.shtml

China Securities Regulatory Commission decision on amending the regulation on securities registration and settlement

    (November 20, 2009, China Securities Regulatory Commission announced on December 21, 2009, 65th purposes), 14th, second paragraph is amended as: "the stock exchange, the China financial futures exchange, securities registration and settlement organizations shall perform their duties asked to provide relevant data and information." 19th, one paragraph is added, as the second paragraph: "investors referred to in the preceding paragraph, including a Chinese citizen, legal person in China, China partnership and the laws, administrative rules and regulations of the other investors, China Securities Regulatory Commission regulations.

    ”

    This decision shall take effect on December 21, 2009.

    The securities registration and settlement regulations in accordance with this decision be modified accordingly, republished.

    Report: securities registration and settlement management (revised 2009)

    (29th of April 7, 2006, China Securities Regulatory Commission announced on November 20, 2009, the China Securities Regulatory Commission on amendments to the securities registration and clearing administrative policy decision on amendments)

    Chapter I General provisions

    First in order to standardize the securities registration and settlement Act, protecting the legitimate rights and interests of investors, securities registration and settlement order, prevent securities registration and settlement risks, ensure safe and efficient operation of the securities market, under the Securities Act, the provisions of the companies act and other laws and administrative regulations, these measures are formulated.

    Article on the stock exchange-listed stocks, bonds, shares and other securities and securities derivatives of securities investment funds (hereinafter securities) the registration and clearing, these measures shall apply.

    Non-listed securities registration and clearing business, in accordance with the measures implemented.

    Registration of foreign capital stocks listed in the territory of the settlement business, laws, administrative regulations, the China Securities Regulatory Commission (hereinafter referred to as the China Securities Regulatory Commission) as otherwise provided, from its provisions.

    Article securities registration and settlement activities must be open, fair, just, safe and efficient principles.

    Fourth securities registration and clearing institutions is for securities and provides centralized registration, custody and settlement services, not for profit corporation.

    Securities registration and clearing business to take the country unified and centralized operations, handled by the securities registration and clearing institutions ' centralized.

    Securities registration and clearing institutions to achieve self-disciplinary management.

    Fifth securities registration and settlement activities must abide by the laws and administrative regulations, the China Securities Regulatory Commission and the securities registration and clearing institutions formulate business rules.

    Sixth the CSRC to securities registration and clearing institution regulatory and securities registration and settlement activities.

    Chapter II securities registration and clearing institution

    Seventh the establishment and dissolution of a securities registration and clearing institutions must be approved by the China Securities Regulatory Commission.

    Eighth a securities registration and clearing institutions shall perform the following functions:

    (A) the establishment and management of securities accounts and settlement accounts;

    (B) the custody and transfer of securities;

    (C) the register of securities holders register and interest;

    (D) the settlement of securities and money management and related;

    (E) distributing interests in securities entrusted by issuers;

    (Vi) to provide securities registration and settlement-related queries, information, consulting and training services;

    (VII) other business approved by the China Securities Regulatory Commission.

    Nineth securities registration and clearing institution shall not engage in the following activities:

    (A) the investment regardless of the securities registration and settlement;

    (B) the acquisition of non-own immovable property;

    (C) in the 65th, 66th, provided these measures selling securities;

    (D) the laws, administrative regulations and other acts prohibited by the China Securities Regulatory Commission.

    Tenth following a securities registration and clearing institutions shall be reported to the CSRC for approval:

    (A) the articles of Association, the formulation and modification of the business rules;

    (B) major international cooperation and exchanges, and Hong Kong, Macao and major matters;

    (C) fees associated with the securities registration and clearing project and standard-setting or adjustments;

    (D) the Chairman, Deputy Chairman, General Manager and Deputy General Manager of the removal;

    (E) other matters according to law shall be submitted to CSRC for approval.

    The preceding paragraph (a) referred to in business rules, refers to the securities registration and clearing institutions and securities account, securities registration, custody and depository participant management, securities clearing, settlement and securities registration and settlement-related business rules.

    11th a securities registration and clearing institutions and documents the following matters shall be reported to the CSRC:

    (A) detailed rules for the implementation of business;

    (B) to develop or modify the operations management system, business recovery plans, emergency response procedures;

    (C) the new securities registration and clearing operations, registration and settlement business model;

    (D) participants in the clearing and settlement banks eligible for the acquisition and loss of movements;

    (E) significant business risk and technology risk, found significant violations or is involved in material lawsuits;

    (F) appointment and removal of branch General Manager, Assistant General Manager, head of company;

    (VII) relating to the operation and implementation of the relevant provisions of the State's annual work report;

    (H) subject to the audit of the annual financial report, financial budget and final accounts plans and major items of expenditure, accounting firm hired or replaced;

    (IX) signed a business cooperation agreement with stock exchanges, securities issuers, clearing participants signed a business agreement and settlement Bank sample format;

    (J) other matters and documents reported by the CSRC. 12th a securities registration and clearing institution shall keep registration, custody and settlement of original documents and related documents and information.

    Their retention times shall be not less than 20 years.

    13th a securities registration and clearing institutions for which they are preparing securities registration and clearing the exclusive management of data and information relating to the business; without the consent of securities registration and clearing institution, any organization or individual shall be the exclusive management of data and information for commercial purposes.

    14th functionaries of a securities registration and clearing institutions and securities registration and settlement business-related data and information confidential.

    For securities registration and settlement-related data and information, securities registration and clearing institution shall refuse the query, but has one of the following situations, securities registration and clearing institutions shall, in accordance with the law:

    (A) holders of securities query their information related to securities;

    (B) securities register of holders of its securities by the issuer and relevant information;

    (C) the stock exchange, the China financial futures exchange, securities registration and settlement organizations shall perform their duties asked to provide relevant data and information;

    (D) the people's courts, people's procuratorates and the public security organs and the China Securities Regulatory Commission in accordance with the statutory conditions and procedures to query and obtain evidence.

    Securities registration and settlement organizations shall take effective measures to facilitate querying his securities holdings of securities holders record.

    15th securities registration and clearing institution shall publish business rules, and securities registration and settlement items and standards relating to the main business.

    Securities registration and clearing institutions to develop or change business rules and adjustment of securities registration and clearing major fees and standards, should seek the views of participants in the relevant market.

    16th a securities registration and clearing institution staff must be committed, in accordance with the law, shall not use positions to seek illegitimate interests, shall not disclose confidential the business secrets of the units and individuals.

    Securities registration and clearing institution in violation of the Securities Act and these rules, the China Securities Regulatory Commission administrative penalty according to law; directly responsible and other persons directly responsible shall be given administrative sanctions.

    Chapter III administration of securities account

    17th investor holdings of securities through the securities account, the balance of the securities account is used to record the investor holds securities and their changes over time.

    18th I for holders of securities in securities shall be recorded in a securities account, but according to the provisions of laws and administrative regulations, and the China Securities Regulatory Commission, records in the nominal holder of securities in securities accounts from its provisions.

    Securities registration and clearing institutions to perform their duties according to law, and may request the nominal holder has its owner's interests in securities-related information.

    19th investors opening securities accounts shall apply to the securities registration and clearing institution.

    Investors include Chinese citizens referred to in the preceding paragraph, a Chinese legal person, China partnership and the laws, administrative rules and regulations of the other investors, China Securities Regulatory Commission regulations.

    Investors applied for opening a securities account shall ensure that the account information submitted is true, accurate and complete.

    20th a securities registration and clearing institution directly to investors opening securities accounts, may also entrust a securities company to handle.

    Securities registration and clearing institution for investors opening securities accounts shall follow the principles of easy and optimal allocation of account resources.

    21st securities company to open a securities account, securities registration and clearing institution may apply for an account agent should be eligible.

    Securities company to open a securities account should be based on the business rules of the securities registration and clearing institution, to provide investors with valid identification documents and other account information for the authenticity, accuracy, and completeness of audit, and shall keep the relevant account opening information, custody periods of not less than 20 years.

    22nd investor my securities account shall not be available to others to use. 23rd a securities registration and clearing institutions shall, in accordance with business rules, accounts monitor the activities of the Agency to open a securities account.
Bank agency of violating business rules, securities registration and clearing institution according to the business rule suspended, revoked his bank agent qualifications, and drew attention to the China Securities Regulatory Commission in accordance with the relevant provisions of suspension or revocation of its securities business license; directly responsible in charge and other direct liable persons, single or warning, fines, revocation of qualification or the securities practice qualification and other penalties.

    24th securities companies should control their customer information and credit status, and monitor the use of the securities account of the client. Security company found its customers in securities accounts of irregularities in the process, should be dealt with in accordance with the business rules of the securities registration and clearing institution, and timely reporting to the securities registration and clearing institutions and Securities Exchange.

    Involved on behalf of the legal person to others the establishment of securities accounts or using other people's securities account securities, should also be reported to the CSRC, will be punished according to law by the CSRC.

    25th investors in the securities account opening and irregularities in the use of, securities registration and clearing institutions shall, on account of the securities account restrictions, cancellation and other measures.

    The fourth chapter registration of securities

    Article 26th listed securities of an issuer shall entrust a securities registration and clearing institution registration of securities issued.

    Securities registration and settlement organizations shall securities registration entrusted to it for the business of the issuer signed a securities registration and services agreement, specify the rights and obligations of both parties.

    Securities registration and settlement organizations shall develop and publish securities registration and services agreement template.

    Securities registration and clearing institutions under Government Department requirements as listed Government bonds registered business.

    27th a securities registration and clearing institution according to securities account records, confirmed the fact that holders of securities holdings of securities, go through the roster of registered securities holders. 28th after the public offering of securities, issuers should be submitted to the securities registration and clearing institution has issued securities of securities holders register and other relevant information.

    Securities registration and clearing institution apply for initial registration of securities holders register accordingly. Issuers should ensure that the information submitted by the legitimate, true, accurate and complete.

    Securities registration and settlement organizations are not liable for issuers of securities caused the securities holders register and other related losses and the legal consequences arising from incorrect information.

    Article 29th of the listing of securities on the stock exchange, securities registration and clearing institutions shall, in accordance with the settlement of securities transactions results apply for registration of the securities holders register.

    Securities transfer, inheritance, donation, transfer of enforcement, administrative transfer or any other means, securities registration and clearing institution based on business rules change the balance of the securities account, securities holders register change registration and handled accordingly.

    Securities pledged, lock, freezing causes the holder of restriction of rights, securities registration and settlement organizations shall be marked in the securities holders register.

    30th a securities registration and clearing institution shall guarantee the securities holders register and transfer registration record is true, accurate and complete, and shall not conceal, falsify or damage.

    31st a securities registration and clearing institutions shall, in accordance with business rules and agreements regularly sent to the issuers of securities holders register and related information.

    Article 32nd issuers apply for rights assignment, agency services, shall, in accordance with business rules and agreements to the securities registration and settlement organizations to submit relevant information and make payments.

    Issuer fails to comply with these obligations, securities registration and settlement organizations have the right to postpone or not process, the issuer shall promptly publish a notice of the situation.

    Article 33rd issuers or their liquidation of terminated securities registration and services agreement, securities registration and clearing institution shall deliver the securities holders to its roster, and other registration data.

    The fifth chapter managed and securities custody

    Article 34th investors should entrust a securities firm managed its holdings of securities, securities companies should be its own securities and managed customer securities depository referred to the securities registration and clearing institutions, laws, administrative regulations and except as otherwise provided by the China Securities Regulatory Commission.

    35th securities registration and clearing institutions for securities company to set up a customer securities General Ledger General Ledger and own securities, to statistical securities deposited with the company's customers and its own securities.

    Securities companies shall entrust a securities registration and clearing institution maintains its customer and own a securities account, but the laws, administrative regulations, and except as otherwise provided by the China Securities Regulatory Commission.

    Article 36th investors buy and sell securities, should enter into securities transactions with securities companies, custodian and settlement agreement. Securities registration and settlement organizations shall develop and publish security trading, custody and settlement agreement with a securities registration and clearing essential clauses relating to the business.

    Essential provisions should include, but not limited to, the following:

    (A) according to the customer's securities company commissioned, transaction reporting in accordance with securities and exchange rules according to trading results fulfil its clients ' securities and the settlement of funds, and assume the corresponding settlement obligations; customers should agree to after the close of trading, securities registration and clearing institution commissioned by the securities companies securities accounts with securities companies huafu securities between securities settlement account; (B) the pledge of repo transactions, investors and securities firms should be in accordance with business rules to the securities registration and clearing institutions used to repurchase mortgage certificates.

    Investors and securities between the debtor-creditor relationship does not affect the securities registration and clearing institution in accordance with business rules for securities firms pledge certificate submitted by a right of pledge; (C) when customers default on its financial settlement, securities firms may entrust a securities registration and clearing institutions huafu net purchases of securities to the customer in its disposal of securities accounts and require customers to complement the funds within the agreed period.

    When customers default on its securities settlement, securities companies can be equivalent to the amount of stock settlement defaults not of funds paid to the customer.

    37th between a securities firm and its clients should be set up, change and termination of custody matters submitted to the securities registration and clearing institution.

    Securities registration and settlement organizations shall be recorded on these matters.

    Article 38th customer securities and securities held by the company will be managed by other securities companies, securities companies should be based on securities exchanges and securities registration and settlement organizations related business rules be made shall not refuse, but relevant laws, administrative regulations and except as otherwise provided by the China Securities Regulatory Commission.

    39th securities companies should take effective measures to ensure the safety of its managed security, ban illegally diverted.

    Securities registration and settlement organizations shall take effective measures to ensure the safety of its securities depository, ban illegally diverted.

    40th securities pledged, locking, freezes or deducts, managed by the securities the securities companies and securities registration and settlement organizations according to the related regulations of securities registration and clearing institution.

    The sixth chapter of securities and financial settlement

    41st securities companies involved in securities and money concentrated settlement, should apply to the securities registration and clearing institutions obtain qualifications for clearing participants, signed a settlement agreement with a securities registration and clearing agencies, specify the rights and obligations of both parties.

    No clearing participants qualified securities firms should delegate settlement agreement with the clearing participants commissioned the clearing participants on behalf of securities and money concentrated settlement.

    Securities registration and settlement organizations shall develop and publish the settlement agreement model and principal settlement agreement.

    42nd securities registration and clearing institution shall select an eligible commercial bank as the settlement Bank funds huafu business.

    Bank's conditions, formulated by the securities registration and clearing institution. Article 43rd securities capital settlement grading and settlement principle.

    Securities registration and settlement organizations are responsible for conducting a securities registration and clearing institutions and concentrated settlement between clearing participants; clearing participants responsible for clearing participants settlement with customers.

    44th securities registration and clearing institution shall establish a centralized securities settlement account and fund settlement account, to participants in the handling and settlement of securities and money concentrated settlement. Clearing participants should be according to the provisions of the securities registration and clearing institution, apply for the opening of securities settlement accounts and funds to handle securities settlement accounts and the settlement of funds.

    And to engage in securities business and brokerage clearing participants should apply for opening a proprietary securities, Fund settlement account and customer securities, Fund settlement account respectively for handling proprietary trading of securities, settlement of funds and securities brokerage, financial settlement.

    45th multilateral netting a securities registration and clearing institutions shall be determined according to business rules, as the common enemy of clearing participants, according to delivery versus dealing with principles, to clearing participant settlement units to complete settlement.

    46th a securities registration and clearing institutions and participation in the multilateral net settlement clearing participants to enter into the settlement agreement should include the following:

    (A) the contract for clearing participants responsible for the settlement of securities transactions, the contractual clearing participants to counterparty clearing participants charged securities or funds right to counterparties and clearing participants to pay financial obligations or securities transferred to the securities registration and clearing institutions;

    (B) the transferee after the aforesaid rights and obligations, securities registration and clearing institutions and parties to the original contract clearing participants to counterparty clearing participants rights and performance of the original contract and settlement participant's obligations to its counterparty clearing participants.

    47th a securities registration and clearing institution for multilateral NET liquidation, should be clearing participants of securities and financial netting to calculate the payable and receivable NET, and after the liquidation of the liquidation results inform the clearing participants.

    Securities registration and clearing institutions to adopt other means of settlement shall be in accordance with the relevant business rules for liquidation.

    48th concentrated before the settlement, clearing participants should charge their clients their securities and funds and clearing participant securities settlement account, the clearing participant funding settlement account securities and money retained in full.

    Huafu securities between clearing participants and account shall entrust a securities registration and clearing institutions to handle. 49th concentrated settlement process, securities registration and clearing institution shall, at the delivery point, clearing participants to collect their funds and securities, while delivering the Securities and funds receivable.

    Irrevocable after delivery is complete.
Clearing participants failed to fulfil in full to cope with securities or funds settlement obligations, cannot obtain the appropriate funds or securities.

    While engaged in proprietary trading and brokerage or asset management business of clearing participants, if its customer delivery account funds of funds, securities registration and clearing institution may use the clearing participants proprietary funds settlement funds in the account to complete the settlement.

    After 50th concentrated settlement, clearing participants should be delivered to customers of their securities and funds receivable.

    Huafu securities between clearing participants and account shall entrust a securities registration and clearing institutions to handle.

    51st a securities registration and settlement organizations shall be in the settlement rules for clearing participants of the securities registration and clearing institutions and securities and funds focused on clearing and settlement participant with customer securities and fund settlement periods to make provisions.

    Settlement of clearing participants shall, within the prescribed period the Securities and the settlement of funds.

    52nd due to reasons for liquidation of the securities registration and clearing institution results in error, after clearing participants to fulfil settlement obligations securities registration and clearing institution may be required to correct it, and the responsibility of clearing participants suffered direct losses.

    Seventh chapter risk prevention and settlement default management

    Section risk prevention and control measures

    53rd securities registration and settlement organizations shall take the following measures to strengthen the securities registration and settlement, risk prevention and control:

    (A) develop a comprehensive risk control system and internal control system;

    (B) establish and improve the technical system, developed jointly by the clearing participants to comply with technical standards and norms;

    (C) establish and improve clearing participants and access to bis standards and risk assessment system;

    (D) to back settlement data and technology systems, development of operational emergency procedures and processes.

    54th securities registration and settlement organizations shall cooperate with stock exchanges, establishing system of the systemic risks of the securities market.

    Securities registration and settlement organizations shall sign business cooperation agreement with stock exchanges, specify the rights and obligations of both parties.

    55th securities registration and clearing institutions shall, in accordance with the principle of shared risk, organization of clearing participants to establish mutual insurance of securities settlement, settlement default for clearing participants ensuring continuous progress of settlement.

    Securities settlement of mutual insurance collection, use, management and payment practices, stipulated by the business rules of the securities registration and clearing institution.

    56th securities registration and clearing institution can be considered the risk of clearing participants, request the clearing participants to provide guarantee for the delivery of risk control measures.

    Specific criteria for settlement guarantee clearing participants, the securities registration and clearing institution according to the degree the risk of clearing participants identified and adjusted.

    Securities registration and settlement organizations shall submit the clearing participants settlement guarantee of isolation from its own assets, strictly according to the management system of clearing participants, shall not be diverted.

    57th clearing participants in the Fund settlement account, deposit of securities settlement reserve to complete the settlement.

    Securities registration and settlement organizations shall be deposited with the clearing participant settlement reserve gold isolation with its own funds, strictly according to the management system of clearing participants, shall not be diverted.

    58th securities registration and clearing institution shall imposed on mortgage repo collateral Vault system, will be submitted for clearing participants transferred to the collateral financing repurchase guarantee pledge Vault.

    59th securities registration and clearing institutions receiving funds and securities, only according to the business rules for transaction settlement of securities transactions, shall not be enforced:

    (A) the securities registration and clearing institution charged by securities settlement risk funds, the mutual insurance of securities settlement, and settlement collateral repurchase mortgage coupons to guarantee settlement of funds and securities;

    (B) a securities registration and clearing institutions in accordance with the measures set up centralized securities settlement account, Fund settlement account, special settlement account of securities and funds and other special settlement account established in accordance with business rules within the Securities and money;

    (C) the clearing participant securities settlement accounts, clearing participants disposal of securities accounts and settlement accounts in the Securities and clearing participant funding settlement funding according to the trading results in the account;

    (D) according to the trading results of investors entering the settlement process to deal with securities and money;

    (E) the securities registration and clearing institution in Bank settlement reserve, special deposit accounts, issuing capital verification account funds to be distributed to investors and issuers of debt, dividends and bonuses, and so on.

    60th a securities registration and clearing institution based on management of securities registration and clearing business needs, apply for credit in accordance with the relevant provisions or special liquidation of loans backed by securities in the account for the purpose of applying, to safeguard the securities registration and settlement activities continued as normal.

    Section II settlement defaults worry

    61st securities registration and settlement organizations shall establish a special settlement account, stored in the clearing participants when it comes to hold off delivery or deduction of securities and funds.

    62nd clearing participant funding settlement default, shall, in accordance with the following procedure:

    (A) default settlement participation people should to securities registration settlement institutions sent securities make received huafu instruction, in the settlement participation people day all should received securities in the specified equivalent to has delivered funds matching of securities type, and number and the corresponds to of securities account, by securities registration settlement institutions delivered settlement participation people; and specified equivalent to insufficient amount of securities type and number, by securities registration settlement institutions temporarily not delivered to settlement participation people.

    (B) the securities registration and clearing institution within the time stipulated in the receipt of a valid settlement huafu securities directive, should be based on business rules deliver the corresponding securities clearing participants, will not deliver the securities included in the special settlement account, and notify the clearing participants within the period specified in the funds or submit a settlement guarantee.

    Securities registration and settlement organizations in effective settlement huafu securities is not received within the prescribed period directive, belonging to the clearing participant major settlement default, securities registration and settlement organizations shall be delivered to the participants in the settlement of all the securities included in the special settlement account, no delivery of clearing participants, and notify the clearing participants within the period specified in the funds or submit a settlement guarantee.

    Withhold delivery of securities, supplementary funding or delivery guarantees are insufficient to make up for the amount of default, securities registration and clearing institution may deduct proprietary securities clearing participants, and transferred to a special settlement account notification after clearing participants.

    63rd clearing participant funding settlement default, securities registration and settlement organizations shall use funds in accordance with the following order, complete with a counterparty clearing participant funding settlement:

    (A) defaulting clearing participants of the cash part of the collateral;

    (B) the securities settlement between defaulting clearing participants to pay part of the premiums;

    (C) securities clearing each other clearing participants to pay part of the premiums;

    (D) securities settlement risk funds;

    (E) other funds.

    64th clearing participants the securities settlement default, securities registration and settlement organizations have the right to withhold delivery of the equivalent amount of default funds received. Securities registration and clearing institution shall withhold huafu funds into special settlement account, and notify the clearing participants.

    Clearing participants make up the securities shall, within the prescribed time limit, or provide guarantees recognized by securities registration and clearing institution.

    65th clearing participants default on its securities settlement, securities registration and clearing institution has available the following securities, complete with a counterparty clearing participants in securities settlement:

    (A) defaulting clearing participants submitted the same securities to offset;

    (B) the principal security company in special liquidation of funds in the account to buy the same stock;

    (C) other sources of the same securities.

    66th defaulting clearing participants are not met within the period provided, funds, securities, securities registration and clearing institution may dispose of collateral provided by the defaulting clearing participants, collateral Vault repo pledge coupons, selling private securities in liquidation of accounts.

    Proceeds of disposal of the preceding paragraph, to complement the defaulting clearing participants pay money, securities, and pay the associated fees; the remaining shall be returned to the relevant defaulting clearing participants; insufficient payment, securities registration and settlement organizations shall provide the relevant default recourse against the clearing participants. Unable to recover within the time stipulated in the securities or funds, securities registration and clearing institution may, in accordance with the use of securities settlement and indemnity payments and securities settlement risk funds be made up.

    According to law the use of securities settlement mutual insurance and securities settlement risk funds to offset losses, securities registration and clearing institution shall continue to provide recourse against the defaulting clearing participants. 67th clearing participant funding settlement for breach of or settlement for breach of securities, securities registration and clearing institution in accordance with the relevant stipulations concerning collection of liquidated damages.

    Penalty charged by the securities registration and clearing institution shall be included in the securities settlement risk funds.

    68th clearing participants to major settlement default, securities registration and clearing institution in accordance with the following procedure:

    (A) suspend, terminate its section, all settlement, suspension, revocation and settlement participant eligibility, and drew attention to the stock exchange to halt trading measures.

    (B) drew attention to the China Securities Regulatory Commission in accordance with the relevant provisions of suspension or revocation of its securities business license; directly responsible in charge and other direct liable persons, single or warning, fines, revocation of qualification or securities practice qualification of punishment measures.

    Securities registration and settlement organizations to draw attention to take concrete measures to stop trading on the stock exchange by the securities registration and clearing institutions and Securities Exchange developed, reported the China Securities Regulatory Commission for approval.

    69th securities registration and clearing institutions ' securities clearing mutual insurance payments and securities settlement risk funds, and the defaulting clearing participants to take measures provided for in the preceding article, shall be shown in the annual report of the securities registration and settlement.

    Section III of clearing participants and account settlement default management
70th clearing participants in accordance with provisions of the securities registration and clearing institution, securities registration and clearing institutions to apply for opening securities disposal account that holds securities not delivered to the customer.

    71st clearing participants can view a customer's risk profile, including asking its customers to provide settlement guarantee, risk control measures.

    Provide customers with delivery guarantee specific standards, by clearing participants and account in securities trading, custody and settlement agreements, clearly.

    72nd when customers default on its financial settlement, clearing participants may give directions, customers entrust a securities registration and clearing institutions bought a net in huafu securities disposed of securities accounts and require customers to complement the funds within the agreed period.

    73rd when customers default on its securities settlement and clearing participants can be equivalent to the amount of stock settlement defaults not of funds paid to the customer.

    74th defaulting clients are not met within the period provided, funds, securities, clearing participants can dispose of relevant securities account securities sold, delivered or not supplementary items of capital securities.

    Proceeds of disposal of the preceding paragraph, to complement the default customer owes money, securities and related costs; the remaining shall be returned to the customer; there is still insufficient, clearing participants entitled to recourse against the customer.

    75th clearing participants are not receivable funds paid by the customer in a timely manner to the customer or customers entrust a securities registration and clearing institutions huafu securities from the securities settlement accounts receivable to the customer's securities account, clearing participants shall be liable to the customer, cause losses to customers, clearing participants shall bear the liability to its customers.

    76th customers of clearing participants of settlement default, clearing participants cannot therefore refuse to fulfil settlement obligations to the securities registration and clearing institution, nor will it affect already completed and ongoing security and the concentration of funds settlement and securities registration and settlement organizations to handle the huafu securities.

    77th without clearing participants qualified securities settlement rights and obligations between the company and its customers, in accordance with the measures implemented.

    The eighth chapter by-laws

    78th the following terms shall have the meanings herein are:

    Registration refers to the securities registration and clearing institutions and securities entrusted by the issuer, through the establishment and maintenance of securities holders register to confirm security holder Securities Act.

    Hosting refers to the securities companies accept the consignment of client, custody of securities on its behalf and provide maintenance services of collecting bonuses and other equity.

    Custody refers to securities registration and clearing institutions and securities company, customer and own securities central depository of securities companies, and provides maintenance services of collecting bonuses and other equity.

    Settlement refers to clearing and settlement.

    Liquidation, is calculated in accordance with the rules established securities and funds receivable and payable amounts.

    Delivery refers to determine the liquidation results, adoption of transfer of securities and funds for related debt.

    Nominal holder refers to institutions designated representatives and other securities held by others.

    Clearing participants, was approved by the securities registration and clearing institution, are eligible for central clearing for settlement of securities companies or other institutions.

    Common enemy, is in the settlement process, as well as all the buyer's and seller's settlement rivals and ensure delivery of the successful completion of the subject.

    Silver goods to deal with, is a securities registration and clearing institutions and clearing participants in the settlement process, if and only if funds payment upon delivery of securities, the securities pay upon delivery of funds.

    Multilateral netting refers to participants in the securities registration and clearing institutions each balance sheet deal all receivable and payable in securities or funds to offset the net calculated relative to each clearing participants of receivable and payable securities or funds of the net, then follow the receivable and payable of securities or funds net settlement with each clearing participants.

    Centralized securities settlement account refers to a securities registration and clearing institutions to open a settlement account for multilateral settlement business, for participants in the settlement of the securities registration and clearing institutions and securities huafu.

    Funds delivery account refers to a securities registration and clearing institutions to open a settlement account for multilateral settlement business, for handling clearing participants and huafu Fund between securities registration and clearing institution. Clearing participant securities settlement account means clearing participants to the securities registration and clearing institution apply for opening of settlement account for securities settlement.

    While engaged in proprietary trading and brokerage or asset management business of clearing participants, their securities settlement accounts, including proprietary securities settlement account and customer securities settlement account. Clearing participant funding settlement accounts, refers to the clearing participants to the securities registration and clearing institution apply for opening of settlement account for settlement of funds.

    While engaged in proprietary trading and brokerage or asset management business of clearing participants, including proprietary funds its capital delivery account settlement account and customer funds settlement account.

    Special settlement account, refers to the securities registration and clearing institutions opening of settlement account for deposit clearing participant settlement default securities registration and clearing institutions has not yet been delivered and deduction of securities and funds.

    Disposal of securities accounts, refers to the clearing participants to the securities registration and clearing institution apply for opening of settlement accounts, used for storing customer payment for breach of securities not delivered to the customer's securities.

    Collateral custody refers to the securities registration and clearing institutions pledge keeping special accounts opened, used for storing used to repurchase mortgage certificates submitted by the clearing participants such as collateral.

    Securities settlement reserve gold refers to clearing participants in their funds settlement account in store to complete the settlement of funds of funds.

    Mutual insurance of securities settlement, refers to all clearing participants to pay for the settlement of defaulted, they make up for the lack of liquidity and the funding settlement loss given default.

    79th agencies other than securities company approved by the China Securities Regulatory Commission, may accept securities registration and clearing institution entrusted to investors opening securities accounts, investors entrust managed security is acceptable, or apply to become participants in the settlement for customers securities and the settlement of funds, securities registration and clearing business processes in accordance with the measures implemented.

    80th article this way by the China Securities Regulatory Commission is responsible for the interpretation and amendment. 81st article of the rules take effect on July 1, 2006.