Study On The Information Disclosure System Of The OTC Market

OTC market is an important part of the multi-level capital market, and the constructionof the information disclosure system has great significance for supervision. Based on the viewof law, from the national perspective, this paper studies how to improve the informationdisclosure system by building up multi-level information disclosure mechanisms, improvingthe information disclosure standards, moderately Strengthening the administrative regulationand judicial supervision, and enriching the means of punishment to the illegal informationdisclosure behavior.This article is divided into three parts. The main contents are as follows:The first part studies the basic framework of good information disclosure rules of OTCmarket. This part will discuss the subject, the object of the information disclosure relationshipand the procedure and the way of the information disclosure. The subject of the informationdisclosure relationship includes the administrative supervision staffs who regulate theinformation disclosure behaviors by means of laws and regulations and the self-regulatoryorganizations who guide and supervise the issues of the information disclosure. As the objectof the information disclosure relationship, the information shall be disclosed according to animportant standard--“significance”. Contrary to the exchange-traded market, we shall reducethe requirement of the standard of “significance”. At the same time, by classifying the existingfacts and negative information, this paper provides basis for the classification betweenCompulsory information disclosure and voluntary information disclosure. As far as theinformation disclosure procedure is concerned, we shall Clearly defined the two ways ofinformation disclosure procedure by using a Classification technique by which the enterpriseprocedure is classified as internal procedure and external procedure..The second part analyzes our country’s current information disclosure system of OTCmarket. The existing rules of information disclosure of OTC market are derived fromadministrative regulations enacted by China Securities Regulatory Commission (CSRC) andself-discipline rules of the market. The rules which basically contain the subject, significantfacts, significant change, internal and external procedure of enterprises, use the provisions ofinformation disclosure of the exchange-traded market for reference. The third part comments and analyzes our country’s existing information disclosuresystem of the OTC market. It reveals four aspects of progress including forming a standardssystem of information disclosure which is full of diversity, building up a more perfectsponsored broker supervision system of information disclosure, introducing the voluntaryinformation disclosure system on the basis of the compulsory information disclosure system,and re-introducing the market-maker system in the OTC market. However, there are still fourshortcomings. The legislation stay at a low level. The standards and content of the compulsoryinformation disclosure remain to be improved. The voluntary information disclosure lacks ofguidance. Penalties for violations of information disclosure are not enough.The fourth part gives some advices to improve our country’s relevant system. Basedon the market features, we shall establish a multi-level information disclosure system which iscoordinated with market development. We shall classify the market value of listed companiesand the number of shareholders. We shall improve the normalization and refine the standardsof he compulsory information disclosure. In order to improve the credibility and integrity ofthe information of the compulsory disclosure, guidance of voluntary information disclosureshall be enacted in due time. Strengthening modestly the administrative regulation andjudicial supervision, we shall establish a effective mechanism of supervision which regardsthe self-regulation as the main measure and the administrative regulation and judicialsupervision as a supplementary one. We shall enrich the ways of punishment for the violationof information disclosure.