Study Of Securities Civil Compensation Proceedings

Focused on civil litigation system for securities indemnification, this paper, referred to relevant system design from developed countries and regions in the world , tries to integrate and analyze the existing studies from various angles, reveal the deficiency thereof, and put forward corresponding suggestions in the hope of helping improve the civil litigation system for securities indemnification of this country.Nowadays, though the securities civil liability system of China has tend to be improved and perfected owing to the amendment of company law and securities law, the relevant civil litigation system for securities indemnification is still far from mature which lead to the obstacles to the rights and interest protection for medium and small investors . First of all, the present prepositional procedure restricts the right of action of investors, causes them many disadvantages, and has conflicts itself from the view of nature its jurisdiction and administration, therefore should be annulled. Secondly, although China's civil litigation system for securities indemnification has lightened investors' burden of proof to some extent by virtue of referencing "fraud on the market theory" and "the inferred reliance principle", there is necessity to review on the causation of loss caused by selling stock before the revealing day. The paper suggests that view of "dual-causality" when cognizing causality herein and assignment of burden of proof. Finally, by comparatively analyzing the securities group action system, China's representative action mechanism in civil litigation for securities indemnification has obvious shortcomings and cannot realize the function and effect of group litigation availably. The paper suggest we reference the US-style securities class action and establish our securities group litigation rules and improve the relevant supporting system especially strengthen people's courts' administration function herein, and frame class litigation to match shareholders derivative litigation.