Recently, the Shanghai Stock Exchange (SSE) has completely sorted out relevant tasks in implementation of examination and registration for market participants in self-regulation, and released a list for issues related to examination and registration, as well as guidelines for handling relevant business lines to the market. This sorting-out work is one of the SSE’s key measures in enhancing quality, efficiency and transparency of self-regulation and service work, according to the requirement of “Promoting Transformation of Regulation on Securities and Futures” put forward by the “Some Opinions of the State Council on Further Propelling Sound Growth of the Capital Market”.
As a self-regulatory administrative organization in the securities market, the SSE, though not equipped with the authority for administrative permission, also deals with some issues in examinations and registrations with influence on the rights and obligations of market participants. Generally speaking, the registration issues are clearly specified according to the regulations of the China Securities Regulatory Commission and the SSE’s business rules. The registration issues aim at checking the completeness of applications of market participants, and confirming that market participants with required conditions could deal with some business lines, or have certain qualifications or authorities. After this sorting-out, the SSE has clarified 12 issues in 4 categories for examination and 21 issues in 7 categories for registration in its self-regulation. All the relevant issues cover all sides in the SSE’s market organization and administration. Issues for examination mainly center on listing of securities and member admission, and issues for registration focus on preliminary confirmation for several issues in information disclosure, trading, and transfer business.
According to the requirements for simplifying issues for examination and changing concepts for regulation, the SSE has adjusted the former issues for examination, such as “Relevant Business of Trading Units”, “Revoking Risk Alert”, “Preliminary Check for Information Disclosure”, and “Equity Transfer”, to issues for registration in this sorting-out. Besides, the SSE has canceled the former issues for registration, including “Listing and Floating of Shares with Sales Limit”, “Subscription and Redemption for Funds”, “Equity Division Reform”, “Trading Suspension or Resumption”, “Newly Listing of Shares by Listed Companies”, “Granting and Exercise of Stock Options and Restricted Shares”, and “Qualification for Primary Dealer in Block Trading System”. In the future, the above 7 issues will be handled as business lines in market services. The SSE, through simplifying and adjusting issues for examination and registration, aims at enhancing efficiency in self-regulation and strengthening the concept of market services.
In order to facilitate market participants to handle relevant business lines, according to the result of this sorting-out and appraisal, the SSE has formulated and released the “SSE List for Issues for Examination and Registration”, and the “SSE Guidelines for Handling Issues for Examination and Registration”, which have clearly listed the rules, departments, conditions and documents, procedures and deadlines for handling the aforementioned issues, greatly enhanced transparency, standardization, and convenience in handling these business lines. Market participants could make inquiries through the column of “Issues for Examination and Registration” on the SSE’s website, prepare relevant documents, and submit them for handling relevant issues according to the requirements.
Over recent years, the SSE has attached great importance to sorting out and standardizing the self-regulation business rules and issues, and promoting the transformation and transparency of regulation. This sorting-out and appraisal work, based on the SSE’s overall sorting-out and appraisal of business rules over the years, is an all-round sorting-out and regulation of issues involved in market admission to be implemented for market participants. Later, the SSE will regularly sort out relevant issues, timely update issues and handling procedures for examination and registration, build a long-term mechanism for improving appraisal on and adjustment to issues for examination and registration, constantly promote the transformation of self-regulation, and continue to enhance effectiveness, pertinence and transparency in self-regulation and relevant services.