Category: Money tips Release Date: 2006-04-07
Securities and Futures Commission recently issued a notice to halt "Group buy" shares behavior.
"The problem is not that serious, but found that some brokerage business department around the corner." Interested persons on the Shanghai Securities News said.
The so-called "Group buy" shares, meaning that co-subscription of new shares in the operation, set up a virtual account number from the brokerage, in the concentration of retail funds under this account to participate in online subscription of new shares issued to raise the success rate, and the listing of new shares from the secondary market profits after the distribution of income according to the proportion of retail funds and charge a fee. It is understood that issuing new shares to restore money purchase system, there are some brokers sales department said it would carry out such services, nominally multi-use "value-added services" or "a collection of financial management" expression.
In response to this phenomenon, the SFC has recently issued a "money purchase, and underwriting on the strengthening of operational management issues related to notice" halt the "Group buy" shares behavior. The notice requirements, "self-subscription of new shares of securities companies, and must use the securities have been prepared by self-reported accounts, strictly prohibit the use of customers or other people's accounts purchase; must use its own funds and funds raised in accordance with law, is strictly prohibited misappropriation of customer transactions settled funds for purchase. The securities company should strengthen its sales network under the new share subscription agency business management, to prevent the above-mentioned violations. "
According to the source, this is in essence a halt, "Group buy" IPO business. "Acting purchase, in violation of the" Securities Act "on the brokerage business could not discretionary provisions; the same time, to do such a thing, we should set up a virtual account, two retail funds necessary to set up, calling such misappropriation of someone else's account must misappropriate someone else's customer deposits. "so that the persons concerned.
The notice also emphasized that non-broker misappropriation of client funds hit new shares. Notification requirement "were not allowed to self-purchase by the underwriters of the Company's stock, nor shall the name of others in disguise purchase of the company's stock underwriting. Uncleared violations asset management business may not participate in issuing new shares subscription of funds, compliance, asset management orientation business and I will be approved to be established by a collection of financial plan to participate in IPO capital purchase. for the control of underwriting risks in order to underwrite securities underwriting approach should consider the brokerage's net capital and liquidity position, according to their own situation to determine the net capital adequacy the size of the largest underwriting business to ensure that every single company's underwriting business has sufficient net capital to support; must be substantive underwriting, through the signing of the supplemental agreement is strictly prohibited methods such as false underwriting; for the remaining shares in the underwriting result in the size of a single super-stock ratio, shall run from the date of the stock market to gradually sell the shares, a period of not buying the stock, resulting in the total size of disproportionately self-employed, and should also be restrictions on buying other stocks until the company's own scale of operations meet the required standards. "
SFC sent to an agency's "on the strengthening of financial supervision of purchase, and underwriting risk-related issues notice" stressed that the securities regulatory bureaus should pay close attention to the jurisdiction of securities companies and securities business department customer transaction settlement funds of the changes in the situation and prevent securities companies and unlisted securities business operation of the Department, through such means as misappropriation of clients trading settlement funds, thus affecting the normal investor purchase. In addition, the area should pay close attention to the securities of the company's underwriting business, and as an important off-site inspection.
