Research On The Protection Of Investors’ Right And Interests In The Non-public Equity-based Financing

Being the representative of the internet finance,the non-public equity-based crowd-funding not only widen financing channel of SME,but also give a serious challenge to protection of investors. Investors are the basis of the capital market.To protect the interests of investors primarily could improve the supervision mode of the non-public equity-based crowd-funding,thus an orderly, healthy and rapid development of the non-public equity-based crowd-funding market could be achieved. In view of the research on current regulatory frameworks of the non-public equity-based crowd-funding,investors are now facing a series of legal risks. This paper is aim to give some specific advice on the patterns to protect the right of non-public Equity-based crowd-funding investors.Except the introduction and conclusion parts, the main article content could be divided into six parts:The first part is the basic operational mode of the non-public equity-based crowd-funding. This part introduces its definition and classification, mainly focus on its connotation.At last the author take JD club as an example to analyze the financing mode of the non-public equity-based crowd-funding.The second part is the analysis on legal risks that investors would encounter in the non-public equity-based crowd-funding,including the deficiency of legal guidelines, unified management regulation, capital raisers illegal security issuance, the possibility of fraudulent capital-funding to investors,the compliance risk of managing platforms and so on.The third part is to optimize the supervision mode to strengthen the protection of investors.Firstly,it discusses the necessity of upgrading the supervision mode of the non-public equity-based crowd-funding. Secondly, it discusses the rationality and necessity of lowering the threshold of the investors, setting of the total investment amount of the investors and the gradual release of the limit on the number of the non-public equity-based crowd-funding.The fourth part is mainly about strengthening the network platform to achieve the maximization of the interests of investors.The fifth part is Introduction of qualified investors system to implement classification management.The sixth part is the improvement of the information disclosure to ensure that investors’ right to know. It mainly analyzes the necessity and rationality of the establishment of a hierarchical compulsory information disclosure system.