Article 179 The securities regulatory authority under the State Council shall
perform the following functions and duties regarding the supervision and
administration of the securities market:
(1) Formulating the relevant
rules and regulations on the supervision and administration of the securities
market and exercising the power of examination or verification according to
law;
(2) Carrying out the supervision and administration of the
issuance, listing, trading, registration, custody and settlement of securities
according to law;
(3) Carrying out the supervision and administration
of the securities activities of a securities issuer, listed company, stock
exchange, securities company, securities registration and clearing institution,
securities investment fund management company or securities trading service
institution according to law;
(4) Formulating the standards for
securities practice qualification and code of conduct and carrying out
supervision and implementation according to law;
(5) Carrying out the
supervision and examination of information disclosure regarding the issuance,
listing and trading of securities;
(6) Offering guidance for and
carrying out supervision of the activities of the securities industrial
association according to law;
(7) Investigating into and punishing any
violation of any law or administrative regulation on the supervision and
administration of the securities market according to law; and
(8)
Performing any other functions and duties as prescribed by any law or
administrative regulation. The securities regulatory authority under the State
council may establish a cooperative mechanism of supervision and administration
in collaboration with the securities regulatory bodies of any other country or
region and apply a trans-border supervision and administration.
Article 180 Where the securities regulatory authority under the State Council
performs its duties and functions, it has the right to take the following
measures:
(1) Carrying an on-the-spot examination of a securities
issuer, listing company, securities company, securities investment fund
management company, securities trading service company, stock exchange or
securities registration and clearing institution;
(2) Making
investigation and collecting evidence in a place where any suspected
irregularity has happened;
(3) Consulting the parties concerned or any
entity or individual relating to a case under investigation and requiring the
relevant entity or person to give explanations on the matters relating to a case
under investigation;
(4) Referring to and photocopying such materials
as the registration of property right and the communication records relating to
the case under investigation;
(5) Referring to and photocopying the
securities trading records, transfer registration records, financial statements
as well as any other relevant documents and materials of any entity or
individual relating to a case under investigation; sealing up any document or
material that may be transferred, concealed or damaged;
(6) Consulting
the capital account, security account or bank account of any relevant party
concerned in or any entity or individual relating to a case under investigation;
in the case of any evidence certifying that any property as involved in a case
such as illegal proceeds or securities has been or may be transferred or
concealed or where any important evidence has been or may be concealed, forged
or damaged, freezing or sealing up the foregoing properties or evidence upon the
approval of the principal of the securities regulatory authority under the State
Council;
(7) When investigating into any major securities irregularity
such as manipulation of the securities market or insider trading, upon the
approval of the principal of the securities regulatory authority under the State
Council, restricting the securities transactions of the parties concerned in a
case under investigation, whereby the restriction term may not exceed 15 trading
days; under any complicated circumstance, the restriction term may be extended
for another 15 trading day.
Article 181 Where the securities regulatory authority under the State Council
performs its functions and duties of supervision or examination or
investigation, the personnel in charge of supervision and examination or
investigators shall be no less than 2 and shall show their legitimate
certificates and the notice of supervision and examination as well as
investigation. Where the personnel in charge of supervision and examination or
investigation are less than 2 or fail to show their legitimate certificates and
the notice of supervision and examination or investigation, an entity under
examination and investigation has the right to refuse.
Article 182 The functionary of the securities regulatory authority under the
State Council shall be duteous, impartial and clean, and handle matters
according to law, and may not take advantage of his post to seek any unjust
interests or divulge any commercial secrete of the relevant entity or individual
as accessible in his performance.
Article 183 Where the securities regulatory authority under the State Council
performs its functions and duties according to law, the entity or individual
under examination and investigation shall coordinate with it, provide the
relevant documents and materials in a faithful manner and may not refuse any
legitimate requirement, obstruct the performance of duties and functions or
conceal any document or material concerned.
Article 184 The regulations, rules as well as the working system of
supervision and administration as formulated by the securities regulatory
authority under the State Council according to law shall be publicized to the
general public. The securities regulatory authority under the State Council
shall, according to the results of investigation, decide the punishment on any
securities irregularity, which shall be publicized to the general public.
Article 185 The securities regulatory authority under the State Council shall
establish an information pooling mechanism of supervision and administration in
collaboration with any other financial regulatory authority under the State
Council. Where the securities regulatory authority under the State Council
performs its functions and duties of supervision and examination or
investigation according to law, the relevant departments shall coordinate with
it.
Article 186 Where the securities regulatory authority under the State Council
founds any securities irregularity as involved in a suspected crime when
performing its functions and duties according to law, it shall transfer the case
to the judicial organ for handling.
Article 187 The functionary of the securities regulatory authority under the
State Council may not hold any post in an organization under its
supervision.
Chapter XI Legal Liabilities
Article 188 Where any company unlawfully makes any public issuance of
securities or does so in any disguised form without any examination and approval
of the statutory organ, it shall be ordered to cease the issuance, return the
funds as raised plus the deposit interests as calculated at the interest rate of
the bank at the corresponding period of time and be imposed a fine of 1% up to
5% of the funds as illegally raised. A company that has been established through
any unlawful public issuance of securities or through any unlawful public
issuance of securities in a disguised form shall be revoked by the organ or
department that performs the functions and duties of supervision and
administration in collaboration with the local people's government at or above
the county level. The person-in-charge or any other person directly responsible
shall be given a warning and imposed a fine of 30,000 yuan up to 300,000
yuan.
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