The Securities Association of China, Share Transfer Agency Service Provided by Securities Companies Pilot Projects Procedures

中国证券业协会证券公司代办股份转让服务业务试点办法

July 02, 2001 | BY

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Issued: 12 June 2001 Applicability: For the purposes of these Procedures, "share transfer agency service" means the share transfer service provided to…

Clp Reference: 3710/01.06.12 Promulgated: 2001-06-12

Issued: 12 June 2001
Applicability: For the purposes of these Procedures, "share transfer agency service" means the share transfer service provided to a non-listed company by a securities company using its own or leased business facilities (Article 2).

Main contents: The Procedures are formulated to resolve the problem of floating shares originally listed on the STAQ and NET systems (Article 1). According to the Procedures, to provide share transfer agency services in connection with such shares, a securities company shall apply to the Securities Association of China for approval (Article 6). One of the conditions for such application is that the applicant must have over 20 branches in appropriate locations (Article 7). A company requesting share transfer agency services shall also meet certain conditions, including placing a percentage of shares in the custody of a share registration company of no less than 50% of the shares to be transferred through the agent (Article 10). The company shall retain only one securities company to handle its share transfer (Article 11). Shares to be transferred shall be reconfirmed, registered and placed in custody before they can be transferred (Article 21). The procedures for such reconfirmation, registration and custody are specified in the Procedures (Articles 23-29). The securities registration and settlement company shall appoint a securities company to open securities accounts for investors participating in the share transfer (Articles 14 and 16). The investor shall entrust the business department of a securities company to handle the transfer (Article 36). The rules for placing and closing orders, disclosure of related information and suspension or termination of transfer are also set out in the Procedures (Parts Five, Six, Seven and Eight).

clp reference:3710/01.06.12(2)promulgated:2001-06-12

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