Study On Civil Liability For Securities Frauds

With the China's increasing prosperity of securities trading in 1990's, the securities frauds are becoming a deluge. Therefore, how to compensate for the investors' damages caused by the securities frauds in order to protect their legal rights turns into an important task in the field of securities. Now with the revised Securities Law being voted through, people pay more attention on how to construct civil liability system for securities frauds in China again. This thesis is aimed to make a research on this subject.After studied legislation concerned of Anglo-American law system and continental law system, this thesis analyzed some legal problems on the construction of the civil liability system for securities frauds by methods of criterion analysis and comparative research for purpose of making the system in China more perfect. This civil liability system will play an important role in maintaining the fairness, justice and publicity of securities market, in protecting the investors' rights and interests, in promoting the regular development of securities market.Based on the above argumentation, the thesis is composed with four chapters.The first chapter is about basic theory on civil liability for securities frauds. In this chapter, concept and forms of securities frauds are discussed, what's more, the author analyzes constitutive requirements of securities frauds on her understanding of securities frauds. Significance of civil liability is pointed out after introducing and studying three sorts of legal liability for securities frauds.The second chapter is about the current legislation on civil liability for securities frauds in overseas and domestic. Except for the introduction of overseas legislation, this chapter introduces the new revised Securities Law and analyzes the defects.The third chapter discusses main legal problems which need to be worked out in construction of the system. The constitutive requirements of civil liability for securities frauds are: the fact of damage, the doer's fault on purpose andcausation etc. This chapter's main ideas are as follows: the damage should be identified on price deference computational method and illegal income computational method;the causation should be determined by the doctrine of statutes' purpose;the fault on purpose should be judged respectively by the different types of fraud. A suggestion is made about action mechanism in China: the class action is the ideal mode of action at present.The Chapter 4 is about legislative suggestion on how to construct civil liability system for securities frauds in China.