The Suggestions On How To Improve The Legal Regulation Of Insider Trading In The Listed Companies

To ensure the fairness and equity of securities trading, to protect the equal exchanges of investors as well as to promote the healthy development of the capital market are the basic requirements for the construction of the socialist market economy with Chinese characteristics. The insider trading is like a serious disease in the securities market, whose incidence rate is very high and very difficult to diagnose and treat. Thus it results in a bad impact on the capital market. At present, most countries in the world have introduced relevant laws to regulate insider trading. However, the effect is not satisfactory. Even the United States who has a rather perfect legal system can only reduce but not completely eliminate the frequency of insider trading. Even so, we cannot give up the legal restrictions on insider trading.The legal system construction of capital market was started late in China. Therefore, every link of securities trading can be further improved. Fighting against insider trading is an important content to legal system construction in the capital market. We must conduct a comprehensive analysis and an in-depth study on the system and regulate it from multiple levels, aspects and links, so as to create a fair and balanced market environment, and promote the healthy development of the socialist market economy as well. Based on the above reasons, in this paper I analyzed and investigated the current situation and problems of the legal regulation of insider trading in China’s listed companies. I also made an in-depth study of the key components, supervision mechanism and liability system of the insider trading, and put forward some suggestions and opinions on its improvement combined with China’s "Securities Law". This paper can be divided into five parts, in addition to the introduction and conclusion.The first part mainly studied the present situation and problems of the regulation of insider trading laws in China’s listed companies. It first defined the legal meaning of insider trading, as well as the harm it did to the listed companies and securities market. Then according to the investigation of legislation and law enforcement, I analyzed the present situation of the legal regulation of insider trading in China’s listed companies, and presented the existing problems of the insider trading laws in China’s listed companies.The second part mainly studied the key components of insider trading. It first analyzed the determining standard and scope of insider trading subjects based on the US and Canada’s studying of the determining standard and scope of insider trading subjects, and put forward some suggestions and measures for further improvements. I also obtained some enlightments on insider trading regulation in china by the analysis of the standard and the scope of the internal information and the compare of the legal regulation of insider trading between United States and Canada. On the above basis, I pointed out the existing problems on the insider trading regulation--the legal system is not comprehensive, punishment is not enough, compensation amount is small, and the appealing channel is not smooth.The third part refers to the supervisory mechanism of insider trading which was discussed from three aspects. It first discussed the supervisory mechanism of the securities regulators from the departments to specific duties, and analyzed their functions. After that it discussed the self-discipline supervision and social supervision of listed companies.The fourth part refers to the liability system of insider trading. It respectively analyzes the features and roles of civil liability, administrative liability and criminal liability of inside trading and stated out the effects that different kinds of legal liabilities played when regulating insider trading.The fifth part refers to the suggestions on how to improve the legal regulation of insider trading in China’s listed companies. It first defined the key components of insider trading, standard of insider trading subjects and the scope of insider information. Then it improved the supervisory mechanism of insider trading, defined the duties and powers of securities regulator and established the accountability system of the securities regulators. Finally it discussed the improvement on the liability system of insider trading.