Securities Fraud And Remedies On Private Right

By seeing about the general situation of the principle of banning fraud on common-law securities legislation, we conclude that securities fraud is a kind of unlawful practice which badly invades investors' rights and interests, destroys securities exchange order, and distorts justice, equity and open of securities market. It's abusing of resource ascendancy in essence. Therefore, securities fraud is the object regulated by law and supervised by governments emphatically. In order to compensate investors' damages and punish deceivers' illegal activities, legislators have extended the conception of legal fraud from civil law to securities law. This policy also decides that securities fraud is a given legal definition, which breaks through that on civil juristic act in constitutive elements and legal consequences, and closes to that on law of torts in essence. The characters of securities fraud include universality of actors, variety, relevancy and technique of act, and uncertainty of harm. Securities fraud can be classified by different behaviors, mainly including comment on misrepresentation, insider trading, market manipulation and cheating clients.To build the integrated civil responsibility system of securities fraud, the author begins with lawmaking notions, viz. the legislators should realize the necessity of the civil responsibility of securities fraud. The conclusion conies from positive and negative aspects. One side, they should conquer the obstacles on establishing the civil responsibility of securities fraud. On the other hand, they should definitude the functional orientation of the civil responsibility of securities fraud. As responsibility on private law, civil liability of securities fraud is with an eye to provide homogeneity remedies for investors. It has special functions and values in scope of application, substantive rules, procedural rules and legal effects etc., so it is the most direct and effective measure to realize protection of investors' interests. This decides its nuclear status in securities legal responsibility system. Secondly, the author defines the legal essence of civil responsibility of securitiesfraud, which decides its constitutive elements and cause of action. Taking tortious liability for the legal ground of remedies on private right of securities fraud is helpful to overcome the localization of contractual liability, extending the scope of liable subjects from both sides of contract to the third party. At the same time, tortious liability bases on violating legal obligation, and mainly leads to responsibility for losses, which make it more propitious to protect investors' rights and interests roundly. The common liability principle of tortious liability of securities fraud is fault liability, with the exception of non-fault liability. So, it is not particular tortious liability but common tortious liability. On the condition of forming joint tort, the multi-actors should bear joint liability. Finally, the constitutive elements of tortious liability of securities fraud involve liable subject, damages, tortious act, causation and fault. For different behaviors of securities fraud, the liable subjects are not the same, neither the liability principles nor the standards of fault.In tortious compensation suits of securities fraud, the primary problems are right of action, litigant parties, causation and burden of persuasion, defence and exemption from liability, amount of compensation for damages, form of action and limitation of action. Right of action is the precondition for tortious compensation suits of securities fraud, but it has been involved in substantive rights. The problem of litigant parties is that who has the legal authority to bring an action in court and who ought to be sued. In tortious compensation suits of securities fraud, only those investors who deal with the securities and suffer losses with goodwill can be plaintiff, and defendant is the liable subject. Causation is the most pivotal and hardest problem of facts and reasons plaintiff should pro...