The Research Of Insider Trading Illegal Income To Compensate The Victims Loss

Our country securities market development history is not long, but the development speed and scale of the fast and the potential is very rare. However, with the development of economy, various kinds of illegal activities in the securities markets emerge one after another, the number of cases about the insider trading, false statement and fraud customers is on a rising trend year by year. This article expatiates about the insider trading case, currently,according to the law of administrative penalty and securities law,all the confiscated money and property and fines shall be turned over to the state treasury, the investors only can through private litigation relief channels to get compensation.2015 newly issued the administrative reconciliation pilot is only applicable to the facts or legal relationship is difficult to completely clear case. Although this pilot has made a big progress, but we are also can see its limitations, not all cases of insider trading can be administrative reconciliation, investors still need to bring a private prosecution to safeguard their rights. So far, only for insider trading private litigation successful cases in China in September 2014 of wulongzhi case get compensation. From the point of effect, apparently, the protection is not enough.The vitality of the securities market, is the investor’s investment, but insider trading behavior is destroyed the confidence of investors, at present because our country for the system guarantee of the interests of investors still have deficiencies, causing the investors stay away the securities market. To make active in the securities market, the investment form investors, should let investors to know their own behavior predictability for investment results, in other words, because our country investor protection mechanism has deficiencies,such as reasons for investors to predict and understand its investment behavior and the result of action finally affordable, which make investors lost feeling and sense of insecurity. Only real securities law of the protection and treat investor can call law, also only really meet the requirement of the interests of the investors securities laws can have fresh vitality.So.In this paper, based on protection for insider trading behavior by the loss of the interests of the investors, proposed that the illegal income compensation to the victims.In the introduction part,the article introduces the selected topic background and significance, literature review and research methods, making an overview of the overall situation about the insider trading, the subject has played an important role for the long-term development of China’s securities market. Refer to relevant data, through the literature research combined with the related cases, analysis of the related system in America specific to the problem analysis.The text of this article is divided into three parts, detailed introduction is as follows:In the first part, analyzing the current rules of insider trading in China, from the civil liability of insider trading behavior and administrative responsibility, and the current rules and implementation, analysis the problems, and put forward improvement suggestion, namely, to establish compensation system of the victim’s loss, the illegal income by the government instead of private implementation, put forward in this paper, center view.The second part mainly demonstrates the first part point of view, To establish The illegal income compensate the victim’s loss.Respectively from theory and empirical basis of the U.S.two part to demonstrate this point of view, finally expounds the establishment of the mechanism for investors and securities market’s meaning.The third part mainly discussed for building China’s securities insider trading illegal income to compensate the victim loss, based on the experience of the U.S. equity funds, combined with the actual situation of our country, respectively from the sources of compensation funds, manager, compensation object, and the calculation of damages, the victim’s rights and obligations made concrete building ideas, and put forward the mechanism does not conflict with civil litigation mechanism, it is investors’ right to choose their own way.Finally, in the concluding part, main point of this article idea and made a simple reiterated and summary.