Original Acquisition Of Security System Rights On The Context Of Dematerialization

Since the computer and network technology have been used in securities issuing andtrading, it brought completed changes in varies aspects, such as the holding system, themethods of trading and so on. Based on this, the methods of acquiring the security systemrights have been changed as well. Along with the dematerialization, securities lost the form ofcertificates, it existed as electronic records in securities accounts. In the traditional certificatessecurities issue market, according to the law, issuers need to print paper certificates in whichthe record of the issuer were written. Then the paper certificates were sold and handed over tothe investors, the investors successfully achieved its securities rights. After entering thedematerialization era, the carriers of the rights have been changed. The traditional issue wasreplaced by the dematerialization issue. Due to the promotion of the internet, direct issuinghas become a way to acquire securities rights. Under the centralized transaction, both partiescould not get to know each other’s identity, any third counterparty could not be the rightperson. Therefore, good faith acquisition has also become a way to acquire securities rights.After entering the internet age, China’s legislative gaps to the stable development of China’ssecurities market impact is increasingly prominent, and the theory out of the practice led tothe acquisition of dematerialization securities can not be directly applicable to existing lawsand regulations. This paper intends to study the definition of securities from a legalperspective in the context of dematerialization, and thus discuss the investor’s originalacquisition of the securities rights in two aspects: the issuing and the good faith acquisition.By defining the securities and securities rights, this paper comes to a conclusion: thechanges on the form of certificates did not affect the nature of the securities. Securities inessence still represent the sum of the rights of investors. This paper reveals the need to builddirect issuing acquisition through describing the disadvantages of indirect issuing acquisition.And then from the issuer, issue information referral, issue settlement, issue of disclosure ofinformation to explore how to construct China’s system of direct issuing acquisition. Bydiscussing the good faith acquisition under different holding system: the indirect holding system of Convention on Substantive Rules Regarding Intermediated Securities and theexisting directly held system of Japan that is in essentially the same as China Then, provide areference for China to build this system. By sorting out of the relationship between the stockmarket related subjects, explore the confirmation system of securities rights acquisition.