Study On Securities Fraud Responsibility

Securities fraud action has four types in China: trade-off under the table, manipulating market, misrepresentation, and defrauding investors. There are numbers of all types of fraud existing in our securities market. It breaks the system of securities market and results in the failure of optimizingSecurities market resources, which may cause crisis of stock market. On the other hand, it seriously violates the legal right of investors and results in their big loss, which may affect investors' confidence to the securities market. Law responsibility is the basic assurance of Law and regulation, which is the best way to restrain the securities fraud. Law responsibility has three types of forms: criminal responsibility, administrative responsibility, and civil responsibility. The first two forms belong to public law, which is based on protecting the advantage of the society entity. They emphasize on the punishment to the illegal action. Civil responsibility belongs to the private law, which is based protecting the benefit of the individual. It emphasizes on the compensation to the victims' loss. Chapter 1 starts from the definition of the securities fraud. Securities fraud action is considered to accords with to the civil responsibility. Establishing securities fraud regulation is the requirement for investors to recover their loss, for criminal responsibility to prevent fraud, and for modern law to protect privacy. In general, transparency and stabilization of securities industry depend on the maturity of securities law and regulation. Since China securities industry is in the developing period, securities fraud is very serious. Some actions stroke the industry, and resulted in the investors' big loss, Such as misrepresentations of Qiongminyuan and Hongguangshiye, manipulation Of Yiankeji, materially false and misleading statements issued by Yinguangxia, etc. Due to immaturity of securities law, the fraud cannot get controlled. For example, the unbalance of law responsibility, which emphasizes on the administrative and criminal punishment to the irregularity actions, ignores civil responsibility; Even there are some related items, they are simple, applicable-limited, and non-opera table. On the second, we haven't the civil litigation law and regulation related with the securities civil responsibility, such as faultiness of associate lawsuit. Furthermore, "Notify to accept and hear the civil invading lawsuit caused by misrepresentation in securities industry" was issued by superior court on this January. It's a condition to accept and hear such kind of lawsuits, but it's still a temporary regulation, which needs to be improved. On the one hand, there are too many securities fraud actions, and victim investors need get law help desperately. On the other hand, the securities civil responsibility and regulation is far from maturity. The fact of contradiction between them is that there is no investing victim who has won the securities civil compensation lawsuit until today in our country. Chapter 3 discusses the method to improve our securities civil responsibility and regulation through civil basic law, securities law, and litigation law. In civil law, securities civil responsibility has to be regulated as a non-mistake responsibility. Investors only need to provide their losses and securities fraud action. According to the fact of fraud and the loss of victim, the court can judge the action causes the loss of investor so that the victim can get more opportunity to get recovery. In securities entity law, the items and contents about securities fraud responsibility have to be appended in a large amount. All types of fraud (trade-off under the table, manipulating market, misrepresentation, and defrauding investors) have to be defined clearly. Any of fraud action has to take civil responsibility. The people in charge of responsibility may be individuals, may be corporation, the regulation has to increase their responsibility to the fraud. If the principal entity has m...