Securities companies are divided into securities management companies and securities registration companies. An institution that is approved by the competent authority and obtains a business license from the relevant administrative department for industry and commerce and specializes in securities business.
Having the membership of a stock exchange, you can underwrite the issuance, self-management or agent trading of securities. Ordinary investors must invest in securities through securities companies.
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Business rules of securities companies
1, business risk isolation system
Article 136 of the Securities Law stipulates that a securities company shall establish and improve its internal control system and take effective isolation measures to prevent conflicts of interest between the company and its customers. Securities companies must engage in securities brokerage business, securities underwriting business, securities proprietary business and securities assets business respectively, and may not operate in a mixed way.
2. Securities proprietary rules
Article 137 of the Securities Law stipulates that the self-operated business of a securities company must be carried out in its own name and not in the name of others or individuals. Securities companies must use their own funds and funds raised according to law for their own business. A securities company may not lend its proprietary account to others for use.
3. Self-management right
Article 138 of the Securities Law stipulates that securities companies have the right to operate independently according to law, and their legitimate operations are free from interference.
4. Customer fund management
Article 139 of the Securities Law stipulates that the transaction settlement funds of clients of securities companies shall be deposited in commercial banks and managed in the name of each client. Specific measures and implementation steps shall be formulated by the State Council. A securities company shall not classify the trading settlement funds and securities of its clients into its own property.
It is forbidden for any unit or individual to misappropriate customers' trading settlement funds and securities in any form. When a securities company goes bankrupt or liquidates, the customer's transaction settlement funds and securities do not belong to its bankruptcy property or liquidation property. Except for the customer's own debts or other circumstances stipulated by law, the customer's transaction settlement funds and securities shall not be sealed up, frozen, deducted or enforced.
5. Setting and saving of power of attorney
Article 140 of the Securities Law stipulates that a securities company shall make a unified power of attorney for securities trading for customers to use when handling brokerage business. If other entrustment methods are adopted, entrustment records must be made. The customer's securities transaction records, whether the transaction is completed or not, shall be kept in the securities company within the prescribed time limit.
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