A Study On The Issue Of Civil Compensation Caused By Securities Insider Trading

After having witnessed 20 years development, Chinese securities market has gained a dramatic achievement and made an enormous contribution to the construction of economy and society. However, cases of securities market impairing the interest of investors have frequently been emerged. In all these cases, it is especially worthwhile to point out insider trading which has been turned into a formidable problem in securities market. In spite of civil compensation liability of insider trading stipulated by the Securities Law of 2006, its corresponding action mechanism has many problems such as preceding procedure, litigation model and so on. Hence, there are still many obstacles on the way through which victims of insider trading want to get the compensation by starting lawsuits. Taking litigation mechanism as the angle of view, this paper probes into the civil compensation caused by securities insider trading.This paper is composed of foreword, text and conclusion, and the text consists of four parts as follows:Section 1: This part defines the securities insider trading civil compensation, illustrates the necessity of compensation for insider trading and discriminates the compensation litigation for securities insider trading and normal civil lawsuit about compensation.Section 2: This part looks back the development process of civil compensation litigation for insider trading and analyses the disadvantage of preceding procedure and litigation model in current in civil compensation litigation for insider trading.Section 3: This part introduces the foreign civil laws on securities insider trading and analyze the foreign model of civil compensation litigation for insider trading. Finally, a conclusion that American class action system in securities insider trading is worthwhile for China to study has been obtained.Section 4: Based on proposing a series of advice on lawsuit jurisdiction, cancellation of preceding procedure and establishment of class action and other issues, this part mainly deals with the perfection of Chinese litigation system on insider trading.