|
Welcome Guest
|
|
You are using Guest Account
|
|
||||||||||||||||||||||||||||||||||
|
With a view to safeguarding the financial safety and social stabilization, maintaining the normal trading and settlement order in the securities markets, protecting the lawful rights and interests of the parties concerned and guaranteeing the people's courts' enforcement according to law, and after consultation with the China Securities Regulatory Commission, the circular about relevant issues concerning the freeze and deduction of securities trading settlement funds by the people's courts are hereby given as follows: 1.When the people' courts handle cases involving securities trading settlement funds, they shall deal with them differently on the basis of different features of the funds. The securities trading settlement funds shall include the clients' trading settlement funds and self-owned capital of the securities companies used for self-run securities businesses. A securities company shall deposit the full amount of the clients' trading settlement funds into the deposit account to be exclusively used as the clients' trading settlement funds and into the settlement reserves account, and deposit the self-owned capital used for the self-run securities businesses into the deposit account to be exclusively used as self-owned capital, and the said accounts shall be reported to the China Securities Regulatory Commission for archival filing. Therefore the people's courts shall treat the cases differently if the subject of the securities market is one against whom the judgment or order is executed: When a securities company is the person against whom a judgment or order is executed, the people's court may freeze and deduct the funds in the self-owned capital deposit account opened by this securities company, and shall not freeze or deduct the funds in the deposit account used exclusively as the clients' trading settlement funds opened by the securities company. When a client is the person against whom a judgment or order is executed, the people's court may freeze and deduct the funds in the funds account opened by this client in the trading department of the securities company, and the securities company shall assist in the enforcement. However, the funds jointly owned by all clients in the deposit account used exclusively as the clients' trading settlement funds opened by the securities company in a deposition-management bank shall not be frozen or deducted. 2. When the people's court freezes and deducts the securities settlement reserves, it shall correctly distinguish the securities settlement reserves from the self-run settlement reserves. The securities settlement reserves are the standby settlement funds which are taken from the clients' trading settlement funds and self-owned capital for self-run securities businesses and are deposited into the China Securities Depository & Clearing Corporation Limited (hereinafter referred to "SD&C") by the securities companies. They are specially used for the settlement upon conclusion of the securities transactions, and act as the guarantee for settlement performance. The SD&C shall carry out administration over the accounts by separately setting up a clients' settlement reserves account and self-run settlement reserves account for the settlement reserves deposited by all securities companies, and fix on the minimum settlement reserves according to the rules as approved by the China Securities Regulatory Commission. Therefore, the clients' settlement reserves as deposited in the SD&C by securities companies shall not be frozen or deducted by the any people's court. When a securities company is the object against which a judgment or order is executed, the people's court may consult the SD&C so as to confirm the surplus of the self-run settlement reserves as deposited by the securities company; the self-run settlement reserves other than the minimum amount may be frozen or deducted by the people's courts, and the SD&C shall assist in enforcement. 3. The people's courts shall not freeze or deduct the funds in the capital assessment account used exclusively as the issuance of new shares. The special assessment account for the issuance of new shares opened by the SD&C in the settlement bank shall be specially used for depositing and allocating the funds of the issuance of new shares in the securities market, and shall be opened, used, put on records and managed according to the rules as approved by the China Securities Regulatory Commission. Therefore, the funds in the said special account shall not be frozen or deducted by any people's court. 4. The people's courts shall correctly deal with the order relationship between the settlement, delivery and receipt procedure and the execution of the property. When a securities company or its customer is the person against whom a judgment or order is executed, the people's court may freeze the remaining securities or funds of such person after the securities or funds are settled, delivered and received, and order it or him in written form to offer other properties for execution within 7 days. In case the person against whom a judgment or order is executed offers any other property for execution, the people's court shall execute the said property firstly; in case it fails to offer any property within the time limit or the offered property is insufficient for paying off the debts, the people's court may execute the said frozen securities or funds. The securities or funds, which fall into the settlement, delivery and receipt period upon conclusion of the securities transaction carried out by the person against whom a judgment or order is executed, and the securities or funds which have been given to the SD&C by such person for the purpose of performing the settlement, delivery and receipt obligations but are not settled yet, shall not be frozen or deducted by the people's court. 5. The people's courts shall find out whether or not the said floatable securities belong to the person against whom a judgment or order is being executed when taking execution measures to the floatable securities in the securities account of the person against whom a judgment or order is being executed. When executing the floatable securities, the people's court may order the trading department of the securities company, to which the person against whom a judgment or order is executed belongs, to sell the said securities through the securities trading within 30 trading days, and to directly transfer the money from the sell-off into the account as designated by the people's court. 6. When freezing and deducting the securities trading settlement funds, the people's courts shall scrutinize the objections, if any, which are put forward by the parties concerned or the assistants in enforcement, concerning whether or not the related funds fall under the category of the clients' trading settlement funds or the settlement reserves; where necessary, it may submit to the China Securities Regulatory Commission for examination and treatment. 7. When the people's court takes protective measures or execution measures, it shall not affect the normal order of the securities transactions or settlement businesses. 8.The present Circular shall come into force as of the promulgation day. Where any other rules promulgated by the Supreme People's Court prior to the promulgation of the present Circular are inconsistent with the present Circular, the present Circular shall prevail. |
||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||
|
Copyright 2002 NovexCn.com
|