Article 217 Where a securities company fails to start its business within 3
months after establishment without any justifiable reason, or suspends its
business for a consecutive 3 months, the organ in charge of corporation
registration shall revoke the business license of the company.
Article 218 Where a securities company violates the provisions of Article 129
of the present Law by unlawfully establishing, purchasing or revoking any
branch, or unlawfully going through any merge, split-up, business suspension,
dissolution or bankruptcy, or establishing, purchasing a securities operation
institution abroad or purchasing the shares of a securities operation
institution abroad, it shall be ordered to correct. The illegal proceeds shall
be confiscated and a fine of 1~5 times of the illegal proceeds shall be imposed.
Where there is no illegal proceeds or the illegal proceeds is less than 100,000
yuan, a fine of 100,000 yuan up to 600,000 yuan shall be imposed. The
person-in-charge and any other person directly responsible shall be given a
warning and imposed a fine of 30,000 yuan up to 100,000 yuan. Where a securities
company violates the provisions of Article 129 of the present Law by altering
the relevant items, it shall be ordered to correct and imposed a fine of 100,000
yuan up to 300,000 yuan. The person-in-charge and any other person directly
responsible shall be given a warning and imposed a fine of no more than 50, 000
yuan.
Article 219 Where a securities company violates the present Law by engaging
in any securities operation beyond its business scope as permitted, it shall be
ordered to correct. The illegal proceeds shall be confiscated and a fine of 1~5
times of the illegal proceeds shall be imposed. Where there is no illegal
proceeds or the illegal proceeds is less than 300, 000 yuan, a fine of 300,000
yuan up to 600,000 yuan shall be imposed. Under any serious circumstances, it
shall be ordered to close down. The person-in-charge and any other person
directly responsible shall be given a warning and imposed a fine of 30,000 yuan
up to 100,000 yuan and the relevant post-holding qualification or securities
practice qualification shall be revoked.
Article 220 Where a securities company fails to carry out its securities
operation of brokerage, underwriting, self-operation or asset management in a
separate manner according to law but carries out its securities operation in a
mixed operation, it shall be ordered to correct. The illegal proceeds shall be
confiscated and a fine of 300, 000 yuan up to 600, 000 yuan shall be imposed.
Under any serious circumstances, the relevant business license shall be revoked.
The person-in-charge and any other person directly responsible shall be given a
warning and imposed a fine of 30,000 yuan up to 100, 000 yuan. Under any serious
circumstances, the relevant post-holding qualification or securities practice
qualification shall be revoked.
Article 221 Where a securities company submits any false document of
certification or adopts any other fraudulent means to conceal any major fact so
as to cheat for the securities business license or a securities company has any
severe irregularity in the securities trading and thus, fails to meet the
requirements of business operation any more, the securities regulatory body
shall revoke its securities business license.
Article 222 Where a securities company or its shareholder or actual
controller violates the relevant provisions by refusing to report or provide
information or materials regarding its business and management to the securities
regulatory body or in the case of any false record, misleading statement or
major omission in the aforesaid information or materials as reported or
submitted, it shall be ordered to correct, given a warning and imposed a fine of
30, 000 yuan up to 300, 000 yuan. The relevant business license of the
securities company may be suspended or revoked. The person-in-charge and any
other person directly responsible shall be given a warning and imposed a fine of
no more than 30,000 yuan and the relevant post-holding qualification or
securities practice qualification shall be revoked. Where a securities company
provides financing or guaranty for its shareholder or any person related to its
shareholder, it shall be ordered to correct, given a warning and imposed a fine
of 100, 000 yuan up to 300, 000. The person-in-charge and any other person
directly responsible shall be imposed a fine of 30, 000 yuan up to 100, 000
yuan. Where a shareholder has any fault, the securities regulatory authority
under the State Council may restrict his shareholders' right before he makes
correction according to the relevant requirements. Where anyone refuses to
correct, he may be ordered to transfer the stock right of the securities company
as held thereby.
Article 223 Where a securities trading service institution fails to fulfill
its accountability in a diligent manner so that any document as formulated or
produced thereby has any false record, misleading statement or major omission,
it shall be ordered to correct. The proceeds as generated from its business
shall be confiscated. Its securities business license shall be suspended or
revoked. A fine of 1~5 times of its business income shall be imposed. The
person-in-charge and any other person directly responsible shall be given a
warning and imposed a fine of 30,000 yuan up to 100, 000 yuan and the relevant
post-holding qualification or securities practice qualification shall be
revoked.
Article 224 Where anyone violates the present Law by issuing or underwriting
any corporate bond, he shall be given a punishment by the department as
authorized by the State Council in accordance with the relevant provisions of
the present Law.
Article 225 Where a listed company, securities company, stock exchange,
securities registration and clearing institution, or securities trading service
institution fails to keep the relevant documents and materials according to the
relevant provisions, it shall be ordered to correct, given a warning and imposed
a fine of 30, 000 yuan up to 300, 000 yuan. Where any relevant document or
material is concealed, forged, altered or damaged, the violator shall be given a
warning and imposed a fine of 300, 000 yuan up to 600, 000 yuan.
Article 226 Where a securities registration and clearing institution is
unlawfully established without any approval of the State Council, it shall be
cancelled by the securities regulatory body, the illegal proceeds shall be
confiscated and a fine of 1~5 times of the illegal proceeds shall be imposed.
Where an investment consulting institution, financial advising institution,
credit rating institution, asset appraisal institution or accounting firm
undertakes any securities trading service without the relevant approval, it
shall be ordered to correct. The illegal proceeds shall be confiscated and a
fine of 1~5 times of the illegal proceeds shall be imposed. In case a securities
registration and clearing institution or a securities service trading
institution violates the present Law or any operational rules as formulated
according to law, the securities regulatory body shall order it to correct and
confiscate the illegal proceeds and impose it a fine of 1~5 times of the illegal
proceeds. Where there is no illegal proceeds or the illegal proceeds is less
than 100, 000 yuan, a fine of 100, 000 yuan up to 300, 000 yuan shall be
imposed. Under any serious circumstances, it shall be ordered to close down or
its securities business license shall be revoked.
Article 227 Where the securities regulatory authority under the State Council
or the department as authorized by the State Council is in any of the following
circumstances, the person-in-charge and any other person directly responsible
shall be given an administrative sanction according to law:
(1)
Verifying or approving an application for issuing securities or for establishing
a securities company, which fails to comply with the present Law;
(2)
Violating the provisions of Article 180 of the present Law by taking such
measures as on-the-spot examination, investigation and evidence collection,
consultation, freeze-up or seal-up;
(3) Violating the relevant
provisions by giving any administrative sanction to the relevant institution or
personnel; or
(4) Performing any other functions and duties in an
unlawful manner.
Article 228 Where any functionary of the securities regulatory body or any
member of the issuance examination committee fails to perform the duties and
functions as prescribed in the present Law, misuses his power, neglects his
duty, takes advantage of his post to seek any unjust interests or divulges any
commercial secrete of the relevant entity or individual as accessible in his
performance, he shall be subject to legal liabilities.
Article 229 A stock exchange that grants any approval to an application for
securities listing that fail to meet the requirements as prescribed in the
present Law shall be given a warning. Its business income shall be confiscated
and a fine of 1~5 times of its business income shall be imposed. The
person-in-charge and any other person directly responsible shall be imposed a
fine of 30,000 yuan up to 300,000 yuan.
Article 230 Anyone that refuses or obstructs the performance of the
securities regulatory body as well as its functionary on the functions and
duties of supervision, examination and investigation by no means of violence or
threat shall be given an administrative sanction of public security according to
law.
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