Legal Basis of Judicial Freeze of China Securities Regulatory Commission

Judicial freezing is a new law enforcement power in the revision of the new securities law, which gives the securities regulatory authorities certain quasi-judicial power and is one of the important contents of the revision of the securities law. One of the most important means of law enforcement is the right to freeze and seal up. Most countries or regions have given the securities regulatory authorities the necessary administrative enforcement power, enabling them to take necessary enforcement measures in supervision.

According to the law, when investigating, hearing or executing a case of illegal securities, the CSRC may take measures of freezing and sealing up if it finds that the parties involved have one of the following circumstances: illegal funds, securities and other property involved have been transferred or hidden; May transfer or conceal illegal funds, securities and other property involved; Concealing, forging or damaging important evidence; May conceal, forge or destroy important evidence; Other circumstances that need to be frozen and sealed up in time.

In order to protect the legitimate rights and interests of the parties, it is not completely helpless for the parties to be frozen or sealed up. The "Implementation Measures" set up multi-channel rescue measures. For example, during execution, the parties have the right to state and defend themselves, and the executors should listen to and record them.

After the account is frozen, the securities holder requests to sell some or all of the frozen securities, and may unfreeze some or all of the frozen securities if it is considered necessary after examination; If the parties provide corresponding guarantees, the freezing and sealing-up measures may be lifted with the approval of the main person in charge of the China Securities Regulatory Commission; If a party refuses to accept the decision to freeze or seal up, it may apply to the China Securities Regulatory Commission for administrative reconsideration according to law.