Study On Legal Regulation Of Advance Payment In Securities Market

The securities market did not appease the fierce and frightening storm to the minds of the majority of investors in 2015.In the year of 2016, during the first six trading days,there are thousands of shares drop within three days. In the very state of abnormal losses, investors experience unfavorable factors superimposed to enlarge the market risk,and regulators should be aware: there are still loopholes about the system; supervision is still poor, buying stocks is expected, only the optimization of market and the system expects to unite the people. In 2015 China’s "Securities Law" steps into the implementation of the 17 years of the second "amendment". This change is closely related with the reform of stock issue of registration system, and paid attention to the protection of the interests of the investors in the stock market.The pre-compensation system of securities market is to solve the problem of civil compensation in securities market of new initiatives, effectively protect the interests of the investors in the stock market. Securities has recognized, and this legal system can improve China’s securities industry management ability and level of credibility, win the trust of investors. But the pre-compensation system of China’s securities market does not pass the formal law, and Academic circles are short of mature theoretical research,whether based on theoretical reason or practical demand, the system needs to be legal regulation. The legislative reason of the advanced payment system in the securities market are to protect investors, make up for the inadequacy of representative lawsuit,standardize the securities related employees and maintain the securities market and stable development.Currently, the pre-compensation system of securities market in legal operation exists deficiencies. The stock market advance payment system law form is single,related to what subject is not clear, the amount of damages’ formulation is not scientific,and no detailed pre-paid in the law procedures of compensation. If the listing Corporation went bankrupt, then based on the pre-paid form the liquidation order has not found clear. Therefore, it should be in its legislative norms to set scientific andreasonable measures and implementation plan, construct a new model of civil compensation in China’s capital market, eliminate towards registration system when investors market concerns.In practice, the pre-compensation cases in the securities market have " The case of Edmond Health Branch " and " The sea Nexis pre-compensation case”. This two cases of operation has certain guiding significance, and the commission must address fraud,misrepresentation case issued by typical case. However, the problems exposed in the two cases also put forward an urgent demand for the improvement of the system of payment in advance.The early payment system of China’s securities market of legal regulation, the first question should be answered who is the direct compensation, who is the intermediate regulatory agencies, who are eligible investors. Secondly, the pre-compensation system of securities market should also solve the problems on the existence of a program,should be on the force of payment agreement validity via legislation, the payment of funds, coverage, hearing process, the pre-paid defined by priority claims issues to make clearly.The pre-compensation system in China’s securities market conducts legal regulation, so as to make the first payment system and become long-term mechanism for the protection of investors in stock market and finally realize the purpose of legislation of securities law, can produce good social effects meanwhile, which helps to enhance the confidence to investors in the securities market.