Study On Regulatory System Of Otc Securities Law

Construction of a multi-level capital market system will lead a promising future of the development of Chinese capital market, in which the construction of Over the Counter (OTC) market is indispensable. After the third"National Financial Conference"in January 2007, the Chinese government made every effort to building an OTC market all over the country. In 2008, a brand new OTC market settled down in the Binhai district of Tianjin, which can be seen as the very first step of exploring in OTC field by Chinese government. For such a new field, Chinese government has realized that the legal regulation is essential. The OTC market is still on a weak supervision so far. Not only because of the delayed research in legal regulation system in China, but also due to the incomplete information about the OTC law in foreign countries. Based on the modern times'research, the article is about to focus on the OTC security laws in China from the angle of the legal regulation and economic theories as well.This article attempts to give its point by exploring the legal regulation of the OTC securities theory with Chinese specialty fact and comparative analysis about OTC security legal system in United States and Japan, using comparative analysis, historical analysis and empirical analysis methods. This paper is divided into five chapters as below:The first chapter is about to summarized the OTC securities. Actually the definition about the OTC securities is still under discussions, which are the basic of OTC studies and the logic starting line of OTC securities regulatory law. Hence the chapter is based on the discussion about the definition, giving a definition of the OTC. And it reviewed the processing of the OTC to reveal the whole vision of the OTC market.The second chapter is mainly about the theory basic of the OTC securities regulatory law. The OTC is firstly showing as an economic phenomenon, and the economic theory—"nation intervention theory"is the response of the government, meanwhile the economic study have reconsider about the reaction of nation and economy. Therefore the mixture of the two opinions created anti-legislation about the OTC securities regulatory law. The chapter start with the failure theory about the OTC market, then analysis the imperfect competition, information asymmetry, the public nature of information products and the limited rationality of investors in the OTC market, on basic of which to raise nation intervention appropriately theory. Economics profession explored the securities regulatory law from different angles through debating about the clarification of the basic issues, which supply a theory basic for the OTC securities regulatory law.The third chapter compared the OTC market in United States and Japan through the history of OTC development and regulatory law, and find out that advanced countries which own the mature OTC market usually have erected the legal principles of supervision, monitoring Model and institutions and regulatory systems so as to arrive on the legal regulation of important inspirations about the OTC in China.The fourth chapter pays attention to the OTC market and the securities regulatory law, which focuses on the development of China's OTC market, as well as China's Current Situation and Practice. Through the development path of China's OTC market, regulatory review and the legal system and puts forward China's OTC market, in order to lead the direction of China's securities regulatory system of OTC market.The last chapter raises contemplation about the securities regulatory system of OTC market in China through the summary of the overall analysis, legal supervision and interpretation theory and revealing the situation of Chinese OTC practices. The suggestion for establishing a complete and scientific supervision of principle and China's national conditions OTC securities market supervision system shows that the key issue of the OTC regulatory law is to complete the OTC regulatory system.