Research On Disputes Of Insider Trading Disclosing Inside Information Crime

Insider trading has been banned by many countries for heavy harm to the stock market.which is expressly prohibited Insider trading in the Article 138 of the Securities Act of PRC. According to the Article 138 of the Criminal Law of PRC, insider trading and revealing inside information is a criminal action. Since these two crimes are belong to economic ones which are very professional, complicated, and difficult to collect the investigation evidence, moreover, these provisions are too simple to be put in practice. All of above reasons have led to wide discussions both for law practice and theoretical research. Another result is that there is few individual or organization has been judged according to Insider trading. Therefore, in the background of the global financial crisis, although in the case Qing Dong, he was judged as the crime of insider trading and disclosing Inside Information Crime accompanied by a lot of controversy, it has some significance to our Security Market as well as the valuable for judicial practice and basic research. In this paper, by listing the is listed controversial points in the case of Qing Dong, we deeply study the controversial issues about the Insider trading. This paper is divided into four parts:In the first part, this paper introduces the case of Qing Dong, and raises the controversial issues. First of all, when is the time of the formation of inside information; second, whether the disclosure of acts constitutes the crime of insider trading or not; Third, whether "the use of inside information" can be considered as the prerequisite for the sale.The second part, we introduce the definition of insider trading and legal regulations, and review several elements of insider trading, including insider personnel, insider information, subjective and objective aspects of the four elements and focus on the standard to define insider information so as to solve the controversies on the time of formation in inside information. The third part discusses the objective elements of crime including the trading behavior, the disclosure act and the proposed act. To each point in the conduct of the dispute: "the use of insider information",whether it is an essential element of trafficking; disclosure act "the purpose of profit"; the proposed action is included in the objective aspect of this crime. After my analysis it pays attention to the following points of view: the useful information is not the element of the trading behavior; under certain conditions, disclosure act may constitute the crime of insider trading; it is proposed that the expanded interpretation of the disclosure act be included in the objective aspect of this crime. The fourth part including five aspects. First, the area of the subject of this crime; Secondly, the subject elements of the "deliberately" and "knowingly"; Third, analysis the open elements of crime with the views of the scholars- "serious" and "the purpose of profit"; Fourth, circumstantial evidence to prove "to know insider information"; Fifth, based on an analysis of the article that the subject and the object elements of the crime and the open elements of crime. Finally, 4 legislative views have been proposed: Securities Law of PRC should not be included to the content of the inside information; who should also be included in the informed insider information officers; only one crime may be governed; the "use information" is not clearly the element for the sale act.