Research On The Protection Of Rights And Interests Of Small And Medium-sized Investors In Fraudulent Issuance

In 2014,China securities regulatory commission issued several opinions on the reform and improvement and strict implementation of the delisting system of listed companies,which included fraudulent issuance in the compulsory delisting for the first time.Subsequently,on March 9,2018,the Shanghai and shenzhen stock exchanges respectively issued the measures for the implementation of forced delisting of listed companies for major violations of laws(draft for comments).The punishment for fraudulent issuance is further strengthened.It is stipulated that listed companies with fraudulent issuance will not be allowed to re-list after delisting.On the one hand,the penalty for fraudulent issuance is increased;on the other hand,how to avoid small and medium-sized investors to pay for the consequences of fraudulent issuance has become an urgent problem to be solved.In this paper,the case of xintai electric is selected as the target to analyze the issue of fraudulent issuance and the protection of small and medium-sized investors.It is because xintai electric is the first listed company to be forced to delist due to fraudulent issuance after the implementation of the new delisting rules.The process of xintai electric has a strong reference significance for subsequent similar cases.Many measures in xin tai electric cases are first practice,which also has exposed the fraud prevention,compulsory delisting process defects,weak investor compensation measures are not perfect,and many other problems,analyze and solve these problems,help to improve the issuance of fraud measures,strengthen the protection of small and medium-sized investors.Firstly,by analyzing the motivation of fraudulent issuance of xintai electric,this paper proposes measures to prevent fraudulent issuance in order to reduce the occurrence of fraudulent issuance.Secondly,through the analysis of the causes of the losses suffered by investors,from the reasons to find ways to reduce losses.Finally,the deficiencies of the existing investor compensation system exposed in the case are analyzed,and Suggestions for improving the compensation measures are put forward.It is expected that through the analysis of the case of xintai electric,it can provide treatment opinions for subsequent fraudulent issuance events,promote the improvement of relevant systems,improve the protection status of small and medium-sized investors,and let the issuer and relevant responsible persons bear the losses caused by fraudulent issuance.