Studies On The Realization Of Civil Liability Of Insider Trading In The Securities Market

Insider trading is a inherent stubborn disease in the running of securities market of the world. The process of bidding in the open stock exchange market give a handle to those insiders grounded on the information-centric and anonymous non-face-to-face gaming securities transaction. The paper elaborates the definition of insider trading at the first place which comprises of three parts: the insider, the inside information and the format of insider trading. Among them, the insider is consists of three categories which are traditional insider, constructive insider and tippee, in the meantime, material non-public information and diversity of practice need to be taken into account as well. Although we adopted provisions related to insider trading in both previous and present securities law, but still, are not sufficient, especially on civil liability. There are, however, outstanding problems affect the efficiency of China's stock market. As an important part of securities regulation and supervision, Chinese regulators need to make more efforts on the enforcement of insider trading regulation. It is can reasonably be expected that a stable growth approach combined with good and better regulation improvement will emerge in the long run of China. By reference other countries advanced experiences could possibly set a feasible example for us.This article starts elaborate from the definition of civil liability of insider trading and value in order to specify full exposition of civil liability.Then the article falls into four parts based on the above skeleton, contained about 25,000 words.Chapter one mainly discusses the very foundation of civil liability of insider trading by elaborating its character and elements, then came to the conclusion that classify this particular civil liability to the special tort category will be appropriate, despite the concurrence between liability for breaching contract and tort in a few cases.Chapter two sets forth the first part of civil liability of insider trading by analysis components at the first place, regarding to types of civil liability, put monetary compensation together with punitive damages, including choice of rescission, will be much diversity. Moreover, adding expressly statutory provisions for the defense is a necessity.Chapter three focuses on the second part of civil liability, mainly express the scope of proper plaintiff and defendant, the different methods counting the amount of compensation.Chapter four emphasis on the procedures of civil liability of insider trading. As to China, abolish pre-suit demand, shifting the burden of evidence and class action are three aspects needs to be improve.