Law of the People's Republic of China on Securities Investment Funds
Law of the People's Republic of China on Securities Investment Funds
Law of the People's Republic of China on Securities Investment Funds
Order of the President No.71
December 28, 2012
The Law of the People's Republic of China on Securities Investment Funds, which has been adopted at the 30th Session of the Standing Committee of the 11th National People's Congress on December 28, 2012, the revised version is hereby promulgated and shall take effect as of June 1, 2013.
President of the People's Republic of China: Hu Jintao
Law of the People's Republic of China on Securities Investment Funds
(Adopted at the 5th Session of the Standing Committee of the 10th National People's Congress on October 28, 2003 and revised at the 30th Session of the Standing Committee of the 11th National People's Congress on December 28, 2012)
Table of Contents
Chapter I General Provisions
Chapter II Fund Management Institutions
Chapter III Fund Custodians
Chapter IV Operating Mode and Organization of a Fund
Chapter V Public Offering of a Fund
Chapter VI Fund Share Trading, Subscription and Redemption of a Publicly Offered Fund
Chapter VII Investment of a Publicly Offered Fund and Information Disclosure
Chapter VIII Modification and Termination of the Fund Contract on a Publicly Offered Fund and Liquidation of Fund Assets
Chapter IX Exercise of Rights by Fund Share Holders of a Publicly Offered Fund
Chapter X Non-Publicly Offered Funds
Chapter XI Fund Service Institutions
Chapter XII Fund Associations
Chapter XIII Supervision and Administration
Chapter XIV Legal Liability
Chapter XV Supplementary Provisions
Chapter I General Provisions
Article 1 This Law is enacted to regulate securities investment fund activities, protect the lawful rights and interests of investors and relevant parties, and promote the sound development of securities investment funds and the capital market.
Article 2 This Law shall apply to the formation of a securities investment fund (hereinafter referred to as a "fund") through the public or nonpublic raising of capital, the management of the fund by a fund management institution, the custody of the fund by a fund custodian, and the securities investment activities conducted for the benefit of the fund share holders, within the territory of the People's Republic of China; and matters not included in this Law shall be governed by the Trust Law of the People's Republic of China, the Securities Law of the People's Republic of China, and other relevant laws and administrative regulations.
Article 3 The rights and obligations of a fund management institution, a fund custodian and the fund share holders shall be agreed upon in a fund contract in accordance with this Law.
The fund management institution and the fund custodian shall perform their fiduciary duties in accordance with this Law and the fund contract.
The fund share holders of a fund formed through the public raising of capital (hereinafter referred to as a "publicly offered fund") shall enjoy income and assume risks to the extent of the fund shares held respectively, and the distribution of income and assumption of risks for a fund formed through the nonpublic raising of capital (hereinafter referred to as a "non-publicly offered fund") shall be agreed upon in the fund contract.
Article 4 Securities investment fund activities shall be conducted under the principles of free will, fairness and good faith, without any infringement upon the national interest or public interest.
Article 5 The debts incurred by fund assets shall be repaid with fund assets only, and the fund share holders shall be liable for the debts incurred by fund assets only to the extent of their respective capital contributions, except as otherwise agreed upon in the fund contract in accordance with this Law.
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