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Article 17 To be eligible for securities investment, the investor shall open a securities account for recording the balance and changes of securities held by the investor.
Article 18 Securities shall be credited to the beneficiary's account, unless otherwise provided by applicable laws, regulations and requirements of the CSRC that securities will be credited to the nominal holder's account.
The CSDCC may ask the securities nominal holder to provide relevant information of the beneficiary in line with applicable laws and regulations.
Article 19 The investor shall apply to the CSDCC for establishing the securities account with reliable, accurate and complete account opening information.
Article 20 The CSDCC may establish the securities account directly or designate the qualified securities company as the account-opening agent.
The securities account shall be established in such a manner that reconciles the investor's needs and optimization of resource allocation.
Article 21 The securities company shall apply to the CSDCC for the status as the securities account- opening agent.
The securities company shall, in line with the CSDCC's operating rules, establish the true, accurate and full identity of the investor and other account-opening materials, and retain the records for at least 20 years.
Article 22 The beneficiary of the securities account is prohibited from lending the account to a third party.
Article 23 The CSDCC shall supervise the account opening activities by its agents in accordance with the operating rules, and may take administrative actions against the agent for the breach of the operating rules (e.g. license suspension or revocation), as well as refer the matter to the CSRC for instigating disciplinary actions against the defaulter including suspension or revocation of the securities business license; disciplinary proceedings may be exercised against the supervisor in charge and staff involved for the breach (including issuance of a reprimand jointly or severally, imposition of a fine and revocation of the business qualification or the securities industry license).
Article 24 The securities company shall know detailed client information and their credit standings, and monitor the use of securities accounts. Any improper use of the securities account will be handled in line with the CSDCC's operating rules, and be reported to the CSDCC and the Stock Exchange. Where a legal entity establishes the securities account or trades securities in the name of the other person, the securities company shall refer the matter to the CSRC for instigating administrative actions against the defaulter.
Article 25 The CSDCC will take administrative actions including restricted access to or cancellation of the securities account against the investor's improper operations in establishment and use of the securities account. |
