Research On Punitive Damages System Of Insider Trading

In the securities trading market,the damage of insider trading is self-evident.It not only violates the integrity rules and fair trading rules of the entire securities trading market,but also directly infringes upon the legitimate rights and interests of investors.In China,insider trading is sanctioned by multiple means,including criminal penalty,administrative penalty and civil penalty.However,as for the means of civil sanctions,the current securities law of China only stipulates in principle that the insider trading actor should be liable for the losses of investors,which is rather general and lacks specific operating rules.Is revised "securities law" to the punitive damages system in the further perfect,increased its maneuverability,but still exist some problems,which is mainly manifested in insider trading punitive compensation claim subject is not clear,causal relationship between investors and insider trading behavior is not clear enough and needs to improve the calculation method of punitive compensation in three aspects.Therefore,the punitive compensation system in the field of civil liebility,as another weapon ageinst insider trading,has its practical significance and needs to be further improved to enhance the operability of the system,so as to achieve the purpose of deterring insider trading.This paper is divided into three parts:the first part mainly discusses the theoretical basis of the punitive compensation system of insider trading,discusses the deficiency of the theory of fraudulent trading and the clarity of the theory of fair trading from the perspective of the infringement of legal interests of insider trading,and puts forward the practical significance of establishing the punitive compensation system of insider trading.The second part discusses the current legislative situation and applicable conditions of the insider trading punitive damages system.By sorting out the relevant legislation of punitive damages,it finds out the commonness between punitive damages in other fields and punitive damages in insider trading,so as to provide practical support for the punitive damages in the field of insider trading.The third part puts forward the perfect insider trading punitive damages system construction,mainly in the insider trading punitive damages claims the establishment of the subject and the punitive compensation method to calculate the two aspects,The subject of claim for compensation is an investors engaged in reverse securities trading from the time of insider trading to the end of the disclosure of insider information,the improvement of the method to calculate the punitivedamages,increase the securities trading investors actual loss on the contrary as out of regulations and other measures,in order to enhance the maneuverability of the insider trading punitive damages system.