China Securities Regulatory Commission, Implementing Measures for Restricting Securities Transactions

中国证券监督管理委员会限制证券买卖实施办法

June 02, 2007 | BY

clpstaff &clp articles &

Restricting securities transactions as a means of trading regulation.

Clp Reference: 3700/07.05.18 Promulgated: 2007-05-18 Effective: 2007-05-18

Promulgated: May 18 2007
Effective: As of date of promulgation

Applicability: The term "restricting securities transactions" refers to restrictive measures imposed on the securities transactions of restricted accounts of parties under investigation when the China Securities Regulatory Commission (CSRC) is investigating material illegal securities activities, such as stock market manipulation and insider trading (Article 2).

Main Contents: Article 3 of the Measures states that restricted accounts include fund accounts and securities accounts of parties under investigation, accounts under their de facto control and other accounts related to the parties. Other accounts related to parties under investigation include:

(1) accounts having fund transactions with the parties;

(2) accounts having the same person or organization as the fund depositor or withdrawer as the parties; and

(3) accounts having a mortgage relationship with the parties.

Measures restricting securities transactions include:

(1) no purchase of designated trading products, but sale thereof is allowed;

(2) no sale of designated trading products, but purchase thereof is allowed;

(3) no purchase or sale of designated trading products; and

(4) no change of custodian or cancellation of designated transactions (Article 4).

The investigation department may not restrict securities transactions for more than 15 trading days. For complex cases, the period may be extended for another 15 trading days, with approval (Article 5).

Related Legislation: PRC Securities Law (Amended), Oct 27 2005, CLP 2006 No.1 p.31

clp reference:3700/07.05.18promulgated:2007-05-18effective:2007-05-18

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