Research Of Securities Misrepresentation Supervision Based On Investors Protection

The securities market is an important part of the market economy system,which plays an important role in the national economy. At present, the scale ofChina’s securities market is expanding, and the trading system is also beginning totake shape. But the market is still in a transition period from emerging to mature: themarket foundation is weak, the corresponding regulatory system is not perfect, andthe interests of investors are frequently damaged due to the securities fraud. As asecurities fraud, the securities misrepresentation is difficult to identify and supervise,so it causes serious infringement to the investors’ interests.In the development process of China’s securities market, information disclosureviolations cases occur repeatedly. From the famous " Daqinglianyi case","Yinguangxia case",to the "Kelong case","Hangxiaoganggou case" and the recent"Wanfushengke case ", these cases reflect that misrepresentation behavior seriouslydamages the interests of investors and the orderly development of the securitiesmarket. But protecting the legitimate rights of investors is not only a prerequisite forstable development of the capital market, but also the core of securities regulation.Therefore, it’s necessary to study the securities misrepresentation and explore theestablishment of an effective monitoring system, in order to protect the interests ofthe affected securities misrepresentation against the investor.This paper studies the misrepresentation regulatory regime from the angle ofprotecting securities market’s investors, and systematically combs the basic theory ofmisrepresentation regulatory. It analyses the institutional background and currentstatus of misrepresentation regulation and investor protection through some typical cases to offer some suggestions.This thesis includes the following four parts:Part one: Securities misrepresentation overview. This part mainly discusses theconcepts, manifestations and identify of the misrepresentations. At the same time, weparticularly analyses the harm and the legal responsibility of misrepresentation，so asto provide a theoretical basis for the text.Part two: Misrepresentation regulation and investor protection. This partdescribes the meaning of securities regulation and the necessity of misrepresentationregulation, it also studies the history and the main content of China’smisrepresentation regulation. Through the research and analysis of the investorprotection system, we understand the main content and the necessity of investorprotection, and the impact of misrepresentation on investor protection.Part three: The current situation of misrepresentation regulatory and investorprotection. This part mainly analyses some typical cases in our practice tounderstand problems in supervision and investor protection, such as regulatory lag,lack of regulatory intensity and punishment, limited stock exchange regulatoryauthority etc.Part four: Suggestions of our misrepresentation regulatory and investorprotection. This part provides suggestions of two systems: misrepresentationregulatory and investor protection. There are following suggestions for themisrepresentation regulatory system: changing regulatory philosophy and regulatoryapproach, innovating regulatory approach and regulatory system, establishingregulatory system to Securities regulators and increasing the intensity of supervisionand penalties for misrepresentation. And for investor protection system, we shouldimprove civil compensation litigation, establish a diversified dispute settlementmechanism and improve investor protection organization system to protect theinterests of investors.