A Study On The Civil Liabilities Of Securities Insider Trading

The insider trading is a kind of illegal activity, which trespassed the lawful interests of the investors, disturbed the order of security market and was abhorred ever since it appeared. Many countries have taken various measures to prevent it for several hundred years but got little result. Now the insider trading is still an important problem that the security markets in the world should face, including our country . It has been understood that the insider trading will do harm to the private subjects like investors in good faith and corporation etc as Well as the entire security market. Our government has a solid standpoint on anti-insider trading, but the insider trading cases investigated and exposed by the security supervising organizations is very scarce, not to speak the civil cases sued by the victims. The reasons lie in the incomplete legislation especially on civil liability and casual execution of the law, the serious unbalance of the three kinds of liabilities as well as the discordant supply of judicatory function. No effective relief measures of civil suits can be offered to the victims. The investors have nothing to do although they abhor the insider trading. The establishment of civil liabilities of insider trading is very urgent in the face of the arduous task of developing the market healthily and in the background of gradually forming civil liability of fraud statement. The preparation for the legislation of civil liability of insider trading has begun and much energy been put into the theory study. In this dissertation I hope to draw on the experience of western legislation and put forward the concrete countermeasures on the improvement of civil liability of insider trading on the basis of previous fruits.The dissertation affirmed that we should give the victims the civil suit remedy. In that way, we can protect the investors' right, strengthen the investors' confidence, maneuver the enthusiasm of the masses to supervise the insider trading, and then accelerate the healthy and steady development of domestic securities market. There are five chapters in this dissertation. The first chapter is the introduction, which mainly introduced the legal basis of insider trading regulation, the current situation of demestic, and overseas study the problems the writer wanted to resolve. The second chapter, which summarized the civil liabilities of insider trading, included three sections. In the first section the writer commented on the definition of insider trading and determined it from two core parts: inside information and insider. At the same time the writer compared the insider trading with other similar behaviors and pointed out the difference between insider trading and short-swing trading. The second section discussed the necessity of establishing the insider trading regulations from its damage and the resultof scarcity the civil liability and made the definition and extension of insider trading clear. The third chapter determined the civil liability of insider trading, which lied in the foundation of the civil liability system of insider trading. In the first section of the third chapter the writer briefly introduced the foreign legislation, analyzed the legislative tendency of the civil liability of insider trading from the historical angle and introduced the main contents of the current legislation respectively in order to offer a reference to the system of Chinese civil liability. The second section analyzed the present situation, problems and cause of formation of Chinese civil liability system of insider trading .In the fourth chapter the writer discussed the nature and liability-attributing principle of the civil liability of insider trading, analyzed in detail the different damages brought to the victims because of the different trading subjects or different trading results and the liability-attributing principle. The writer also put forward his own option on the practice that attributed the civil in current theoretical field. The fifth chapter is the key part which put for...