Research On The Prevention Mechanism Of Insider Dealing In Securities Market In China

Simply,insider dealing is refers to the use of insider information to trade,this transaction is unconscionable,illegal,does not conform to the public interests,and should be prohibited by law,although there is no unified understanding on the concept of insider dealing among countries and scholars.Insider dealing is not only cause damage to ordinary investors,but also to the companies,and could bring risk to the capital market.But in fact,insider dealing is the existence of illegal acts in securities market,most countries have already make certain laws and regulations on insider dealing,some of them also have formed certain industry standards,from all aspects to its prevention and control.Insider dealing occurred almost every day in Chinese securities maket.Our securities regulatory authorities of the insider dealing has explored severe ways in the prevention and treatment,and obtained certain results.But because of the strong confidentiality, high cost,and great difficulties about the insider dealing,the effect is not ideal.It should be find several ways to prevent insider dealing,to reduce the rate of occurrence,safeguard the interests of investors,protect the company development and ensure that the order of capital market. Although there are some means of prevention for insider dealing,but they did not form the overall meaning of the system,the effect is not ideal.To do a better job in the prevention of insider dealing,the mechanism for prevention of insider dealing should be perfect from all aspects,look for the deficiencies and remede it.Although all the laws and rules in countries on insider dealing have not been able to prevent insider dealing,from the researches on the various national laws,the deficiency of the system could be discovered. According to the reality of our country, the prevention mechanism of insider dealing would be improved.Find ways to prevent insider dealing,to reduce the rate of occurrence,to safeguard the interests of investors,to protect the company development and to ensure that the order of capital has its irreplaceable significance to maintain the normal and orderly operation of the securities market.To facilitate the discussions of the main issues,it is necessary to first introduce the regulation of insider dealing and the present situation in China.Therefore,the present situation and the insufficient in the mechanism of prevention of insider dealing in securities market are payed attention to.Information disclosure system,insider information registration system,insider information confidentiality system,and Whistleblower system are discussed.Information disclose is not prompt and integrity,the range of insiders is not scientific,the registration of insiders is not scientific,listed company confidentiality rules is not perfect,intermediary secure system is not standardized,individual privacy awareness,and lack of incentive and guarantee mechanism. Summarized the above systems of legal laws and regulations,regarding has not been connected the stipulation system,this article will seek the correlated stipulation to conduct the comparison research.according to the issues proposed above and the laws and rules of other countries and regions,these countries and regions are United States, Britain, Germany, Canada, Japan, France, the European Union, China’s Hongkong and Taiwan of china,we can find inspirations about the securities insider trading prevention mechanism.Because US is a more developed country about insider dealing,a much more careful research has conducted when it regards the SEC rules.We can perfect our securities market insider dealing prevention mechanism according to the issues above,the laws and rules of other countries and regions,and the national conditions.To perfect our securities market insider dealing prevention mechanism,relevant suggestions about the securities market insider dealing prevention mechanism are put forward,from system of information disclosure,the range of insiders,insider information registration system,security system and reporting system.