Legal Regulation Of Securities Professionals Buying And Selling Stocks

Securities Investment Funds Law (Revised Draft)"(hereinafter referred to as the"draft ") Exposure Draft has been officially issued, many of these content are significantchanges, most notably the highlight of everyone’s attention than the securities businessis expected to stocks. Prior to this, the development process of the securities investmentindustry, the number of illegal operating practices such as the inverted position, locking,related party transactions, Rat and other common behavior of all kinds of damage to theinterests of securities investors endless. To this end, relevant departments clearlystipulates that securities professionals are not allowed to stock trading, and securitiescompanies can not invest in a major stakeholder stock, this market has beencontroversial. And the actual legal effect is not satisfactory, insider trading has notdisappeared in the "high pressure", but with the development of market economy, signsof a rebound. Acts harmful to the interests of investors still continue to occur, investorsin the investment market, especially small and medium investors, due to lack of relevantexpertise and to obtain information on the existence of serious asymmetric, leading totheir interests have been repeatedly infringed but less related to legal relief. Theirdistrust is increased, this will be a serious threat to the sustained, healthy and stabledevelopment of the stock market. National securities investment funds legislation in theworld, without exception, will maximize the protection of the rights and interests ofsecurities investors as the fundamental intention of the legislation and value orientation.Downward pressure is brought about by the global economic crisis deeply affected ourinvestment in securities markets, if there is no corresponding legal measures, onlyemphasizes the securities practitioners draconian "law" is bound to greatly dampensecurities practitioners to obtain by investing in securities gains confidence andparticipation, the enthusiasm of the prosperity of the stock market, securities investmentfund industry over the years accumulated results may be wasted, multi-level capitalmarket system in China will successfully build a tremendous negative impact, andultimately not conducive to long-term development of the national economy. Thereforesecurities professionals buying and selling stocks safeguard mechanism has significantand long-term legal significance. With the deepening development of China’s market economy, the market is increasingly mature, the combination of advanced foreignlegislative experience and the actual unsatisfactory legislation and law enforcementeffect, to modify the original does not meet the requirements of the world situationbecomes particularly urgent.In the "draft", securities companies will be modest relaxation to relax therestrictions previously, not only of employees is expected to be able to stock trading, butalso allows the employee stock ownership plan, which is essential to reduce the braindrain of the securities market, protect the interests of investors. However, thateverything has two sides, we can not only see the favorable or the composition of theexperiences of developed countries, we should see our own actual conditions andsystem status. How to put an end to the practical problem of the "Rat" and protectinvestors, especially in the interests of small and medium-sized investors, will also bethe basic questions we should be concerned if this issue is handled well, will no doubtlead to the various market players, especially investment concerns of the people, so willthe sound development of China’s securities market in the long run a lot of trouble. Inthis regard, foreign experience in legal regulation, medium and small investors throughto change the backward legislative and statutory open in the securities industryinformation, establish and perfect the legal oversight mechanisms for practitioners inthe implementation of such a series of legal regulation measures I believe thatsatisfactory results will be achieved in the near future, China’s securities market willmove in the health, stability, and prosperity in the positive direction.