The principle of securities depository is centralized depository of registered securities such as stocks, funds and paperless treasury bonds. According to the securities accounts opened by shareholders, the quantity and changes of the deposited securities are recorded in the form of computer bookkeeping. After the securities are deposited, the illiquidity system is implemented. For the transfer of securities caused by changes in equity and creditor's rights, physical securities are not issued, but are transferred through books.
The current securities depository system in China
1. At present, Shanghai Stock Exchange implements the system of unified custody of China Securities Depository and Clearing Co., Ltd. Shanghai Branch (hereinafter referred to as "Shanghai Securities Depository and Clearing Company"), centralized custody of securities companies as legal persons and designated transactions by investors.
That is to say, in addition to Shanghai Securities Depository and Clearing Corporation's unified custody of investors' securities assets and related materials and handling related securities depository business, securities companies set up securities depository with legal person as the unit to centrally manage the securities assets and related materials of customers under their jurisdiction and handle related businesses such as loss reporting inquiry. Investors can only buy and sell securities after handling the designated transactions of securities accounts in the securities business department. When changing securities in the securities business department, investors must apply to cancel the designated transaction in the original securities business department and then transfer to the securities business department.
Designated trading refers to the investor's designation of a business department as the only trading point for buying and selling securities after signing an agreement with it. From 1 April 19981day, the Shanghai Stock Exchange began to fully implement the designated trading system.
All-round designated trading system refers to the system that all investors engaged in securities trading in the trading market of Shanghai Stock Exchange should clearly designate a securities business department as its entrusted settlement institution in advance, and designate their own securities accounts in the seat number of this institution before trading. After the implementation of this system, if the investor fails to handle the designated transaction, the computer system of the Shanghai Stock Exchange will automatically reject the transaction declaration instruction of his securities account (except for foreign investors engaged in B-share trading) until the investor completes the designated transaction procedures.
The registration and confirmation procedures for investors to handle designated transactions are as follows: first, investors apply to securities companies, and after the securities companies agree, both parties sign the Designated Transaction Agreement; Secondly, the securities company will report the designated trading instructions of the securities account to the computer host of the Shanghai Stock Exchange according to the agreement; Third, the computer host of the exchange accepts the declaration, and after the market closes on the same day, it sends out a designated transaction confirmation return with a confirmation number, and the designated transaction of the securities account will take effect from the next business day.
Investors who have chosen designated transactions have the right to change their designated exchanges to the securities business department according to their needs, and the securities business department shall not delay or refuse for any reason, except for investors' failure to fulfill their trading settlement responsibilities and other breach of contract.
2. Securities depository system of Shenzhen Stock Exchange
The Shenzhen Stock Exchange implements the two-level custody system of China Securities Depository and Clearing Co., Ltd. Shenzhen Branch (hereinafter referred to as "Shenzhen Securities Depository and Clearing Company") and the securities business department, also known as the custody securities company system.
Namely: Shenzhen Securities Depository and Clearing Company keeps investors' securities assets and related materials in a unified way and handles relevant securities depository business; At the same time, the securities business department will set up a securities depository for the custody securities companies, which will be responsible for custody of their clients' securities assets and related materials, and handle related inquiries and loss reporting business.
The system of Shenzhen Stock Exchange's custody of securities companies can be summarized as: automatic custody, universal buying everywhere, trading everywhere and unlimited transfer.
That is, the securities held by investors in Shenzhen market need to be entrusted to the securities business department of their choice, and the securities business department manages the detailed securities information under their names, so the securities custody of investors is automatically realized.
When investors buy securities in any securities business department, these securities will be automatically hosted in that securities business department, and investors can use the same securities account to buy securities in any securities business department in China.
To sell securities, investors must go to the securities custody business department (where to buy and sell).
Investors can also transfer their securities under custody from one securities business department to another, which is called transfer custody. Re-custody can be one or more securities, or some or all securities.
Investors apply for re-custody in the original custody securities business department, and the business department makes an offer to the exchange. The exchange will handle the account immediately after the market closes on the same day (T day), and at the same time transmit the processing results to the transfer-out securities business department and the transfer-in securities business department. On the second trading day (T+ 1), investors can sell securities in the securities business department (new custody securities business department).