On The Transfer System Of Securities From OTC To Exchange Market

With the growth of enterprises, it’s inevitable to transfer board from low-level capital market to high-level ones. The method for enterprises’ transfer board from OTC market to exchange market and the rights of transferred board enterprises are still not clear both in theory and policy research. In view of these questions, the thesis attempt to explore the related legal issue. In addition to the introduction and conclusion, the thesis is divided into four chapters.The first chapter is about the Green Channel Mechanism. The Green Channel Mechanism gives the priority of certain enterprises be reviewed and listed.It is beneficiary for attracting quality companies listed on the OTC market first and then transfer board to be listed, promoting the development of the OTC market as well. Green Channel Mechanism’s applicability should be limited to small and medium enterprises which are listed on the transfer board system and comply with specific conditions attached.The second chapter is about the Way of Introduction. Way of Introduction plays a role in providing enterprises with a convenient new way of transfer board to be listed.It is also conducive for market to choose the new issued high quality shares. Therefore, the Article 50 of Securities Act should be amended.There should have limitation on enterprises listed in the National Equities Exchange and Quotations. It is necessary to focus on the improper transfer of benefits when applicable.The third chapter explores the Mandatory Listing System. Mandatory listing system is beneficiary for the the enterprises which prepares to transfer board and be listed to be previously familiar with the legal norms of the securities market; it is conducive to enhancing activity degree of the OTC market trading; it helps to set a reasonable stock public offering price; it is good for distributing the number of waiting for to be listed enterprises. The application of Mandatory Listing System should be limited to the enterprises which prepares to transfer board and be listed on the GEM board, to the enterprises which belongs to the new industry and is not yet profitable and to the enterprises which is listed in the National Equities Exchange and Quotations.The fourth chapter is about the Issuance Supervision System. To meet the needs of the transfer board, modifying the issuance supervision system is an effective safeguard mechanism for the implementation of transfer board system. It is recommend to adopt the pilot registration system for the enterprises listed in the National Equities Exchange and Quotations transferring board to the OTC market.