On The Construction Of Punitive Compensation System For Insider Trading

The rapid development of economy breeds the prosperity of the financial market,and at the same time leads to the repeated prohibition of insider trading in the securities market.The scope of influence and the number of stakeholders are more and more wide,so we must punish it severely in legislation.In 2006,China's securities law for the first time made corresponding provisions on insider trading,initially completed the construction of the insider trading system,but in terms of civil liability,the legislation only states that the actor should bear the liability of compensation for the loss of investors,and there is no provision for the content and method of compensation.Until2015,the first review draft of the Securities Law(Revised Draft)stipulated punitive compensation for insider trading for the first time,but deleted the system in the third review draft in April 2019.Although there are disputes and research gaps in the abolition of the system,this paper argues that the punitive compensation system has its value in insider trading,which can be introduced into the supporting rules of the new securities law and relevant judicial interpretations.It is worth noting that in the new securities law,although no punitive compensation is taken in insider trading as in the third review,the administrative punishment for insider trading has been strengthened.This also reflects the importance of insider trading in China's legislation.Therefore,to improve the illegal cost of insider trading and to implement the punitive compensation system for insider trading are just around the corner.In this paper,literature research and comparative analysis are used to compare domestic and foreign theoretical research.Starting from the basic theoretical issues of punitive compensation for insider trading,the necessity of the existence of the system is discussed,and the punitive compensation system for insider trading in China is attempted to be constructed from two aspects of substantive system and procedural system.This paper holds that the subject of punitive compensation for insider trading is the investor and investor protection institution that engaged in the opposite trade in good faith on the same day,and the subject of liability should be expanded to include the staff for a certain period after the termination of the labor contract,and at the same time,the resigned employees should be given economic compensation during the period of "competition restriction";the amount of punitive compensation is insider trading by using insider information If the illegal income of the exchange subject or the loss of the investor is one to five times,and the compensation for less than 500000 yuan is 500000yuan,the combination of multiple and minimum limit shall be adopted.The specific compensation multiple shall be comprehensively considered by the judge.These are also the innovation of this paper.