A Study On Legal Regulation Of Over-the-counter Market In China

A perfect securities market system includes the stock exchange market and theover-the-counter market. The OTC market is an important part of securities markets.It will widen the financing channels for small and medium-sized enterprises, provideexit mechanism to venture investment funds, cultivate listed companies for the stockexchange market, and consummate the exit mechanism of securities market, etc.Taking an extensive view of some countries or regions with more developed economymarket, such as USA, Taiwan, etc, most of them have established an ideal securitiesmarket multilevel system, which can well abutment joint and interconnect with eachother, to meet different needs of different investors and financing bodies. After a longprocess of being prohibited, with the development of property right transactionmarkets, the establishment of the Commissioned Shares Transfer System and the trialconstructions of the OTC market in Tianjin and some other cities, the establishment ofthe OTC market has put on the agenda of the construction of the multi-level capitalmarket. The establishment of the OTC market has been the common focus in theoryand practice field.For the sake of the actual need of the over-the-counter market construction, theissue will adopt the historical research method and the demonstration research methodto make a systemized study on the legal regulation of the OTC market in China, bycontrasting between the development and the legal regulation route of the USA andTaiwan,combining with economic theory, from the view of law.The issue will start with the basic knowledge of the OTC market, containing theconcepts, the characteristics and function of OTC market. In addition, the basic theoryof the legal regulation on the OTC market will be discussed here. It will analyze theimplication, the theoretical foundation and the principles of the legal regulation of theOTC market. Then, it will introduce the development and the specific content of thelegal regulation of the OTC market in the USA and Taiwan. By the comparison ofthem, the precious experience will be concluded for us. It will also introduce thedevelopment and practice of the legal regulation of the OTC market in china andsummarize the existed problems of them. In final, the issue will put forward somesuggestions about the amendment to super vision legal regulation on the OTC marketof China. The establishment,the legal system construction, the supervision and thespecific system design of legal regulation, which containing the market accessingsystem, trading system and information disclosure system, will be discussed here.