A Research On Civial Liability Regime For Misrepresentation In Security Market

Investor protection is the core essence of stock market and the fraudsters must pay the price for their illegal behaviors.We build the system of civil responsibility for misrepresentation since the judicial interpretation was promulgated by Supreme People’s Court in 2002.However,the enactment of the law or the design of the system does not mean that it will automatically become a code of conduct and form a perfect social order.The system of civil responsibility for misrepresentation of our country has been established for 12 years,the theoretical discussion and case analysis has never stopped,but,there is no comprehensive and in-depth empirical research.It’s truly that we must use the comprehensive practical date to judge a system is good or not.In order to fill the gap,this paper make a systematic empirical research by studying the judgment documents of the misrepresentation cases first.It checks the prosecution rate and the payment rate.Then,it judges the effectiveness of the system of civil responsibility for misrepresentation and respond to the above questions.It will give some suggestions in the end.This paper is divided into five parts.The first part summarizes the main problems of the system of civil responsibility for misrepresentation in judicial practice:Firstly,whether the pre-condition limits the scope of the case inappropriate or not; Secondly,whether the existing regulations can ensure the realization of the legislative purpose or not;Finally,shall we introduce the form of group litigation urgently.Based on problems above,the paper chooses the prosecution rate and the payment rate as the empirical path.The second part makes an empirical analysis about the prosecution rate to verify the problems.The pre-condition is not the main cause of the low rate of prosecution in judicial practice.The main reason is that the courts are not independent at all,Local Protectionism is rampant.Moreover,the inexperienced judges is not good enough.The performance of the court at all stages of trial practice in such cases is really bad.Therefore,the investors are lack of confidence in the proceedings.The third part makes an empirical analysis about the payment rate to verify the problems.The payment rate of the misrepresentation cases is pretty good in judicial practice.lt depends on that the pre-condition plays a supporting role in identifying misrepresentations and the existing regulations are specific and comprehensive.At the same time,it is a rational game that the plaintiffs waiver of personal responsibility for getting a favorable settlement.Furthermore,how to identify the systemic risk and how to calculate the average price are very important to determine the range of loss.However,they are not defined by the existing laws.The fourth part responds the questions and gives the suggestions base on the empirical analysis.First of all,pre-condition is not the main cause of the low rate of prosecution,but we need to expand the type of punishment to meet the pre-condition;Secondly,the existing laws can ensure the realization of the legislative purpose,but the regulations need to be refined and the judge need to improve the level of law application;Finally,the form of litigation can meet the need of judicial practice,but we still need to introduce the form of group litigation in the future.The fifth part makes a conclusion.