The Study On Civil Liability For Security Market Manipulation

Market manipulation is one type of primarily security fraud behaviors. With the expanding of our country’s security market, market manipulation has to increase its emerging frequency and the level of injury. Also,it should be supervised strictly.In our country, the Law of Securities Regulation is focus on find out the administrative responsibility and criminal liability of those people, who want to control the market. However, the rule of the civil liability is obviously general and indistinct.But the actual situation indicates that depending only on administrative responsibility and criminal responsibility could not deter the lawbreakers effectively. Due to the limited regulatory ability of the government departments and judicial office, a huge number of secluded manipulative behaviors haven’t received punishments. In certain ways, it has been encouraged the arrogance of the lawbreakers. According to the experience from the mature security market, setting impeccable civil liability of market manipulation, protecting the legal rights of the individual and supervising by investor themselves could make the market manipulation behaviors disappeared.Thus,I think it has the most important significance to make a study of the civil liability of market manipulation in our country.This paper tries to use the results, which from the analysis and research of the market manipulation’s civil liability, to disclose the significance of the rule and refine the civil liability.The current securities law to define the market manipulation behavior through list the definitely operation practices, while this method is so inflexibility that it is hard to avoid leak. Therefore, in order to improved the applicability of the law,firstly, this paper suggest create a higher abstractly definition to complete the defect. Comparing the relative behaviors and the summary of the existing definition, this paper define the concept of market manipulation as follows:Market manipulation is a behavior which is the personal or organization deliberate attempt to use the capital, information, holding shares, and authority interfere with the free and fair operation of the market and create artificial, false or misleading appearances with respect to the price of, or market for, a security or currency, and make a abnormal return or decrease the loss, and disturbing the order of the securities market.Secondly, using the EMH of the Economy, the principle of good faith and cardinal principles of security law to proof the theoretical basis of market manipulation civil liability.Meanwhile, it indicated the necessity to set the civil liability of market manipulation. After that, it analyses the components of civil liability, and respectively discussed the four components which are illegal act, the existing of facts of damage, the causal relationship between them and the mistake of doer.Finially, analyses the rules insufficient of control behavior civil liability in our security market, and indicate that the One-sided understanding of our lawmakers for a long time. So, it leads the Legislation idea has bias and the law lack of maneuverability. For the above problem, this paper will make some useful suggestions.