~*ST Xindu Forced Delisting Case Study

China’s securities market is vigorously promoting the reform of the delisting system.More and more companies that do not meet the listing criteria withdraw from the securities market,and delisting,especially the forced delisting caused by illegal activities of listed companies and major shareholders,brings to small and medium investors.It is often the infringement of interests and major economic losses.Small and medium-sized investors are important participants in the securities market,and they are the main providers of funds.Effectively protecting the legitimate rights and interests of small and medium-sized investors in delisting is to promote the reform of the delisting system.The key to ensuring the stable operation of the securities market.This paper takes ~*ST Xindu,a company that was forcibly delisted in 2017,as the case study object,and analyzes the protection situation of small and medium-sized investors in the process of delisting ~*ST Xindu from the specific process of delisting the case company,and researches the reasons for the violation of rights.The conclusions of this paper are as follows: during the delisting of ~*ST Xindu,the protection for small and medium-sized investors is not good,and it is infringed by the following three aspects:First,the right to know is infringed: serious disclosure of major risks is insufficient;second,the right to benefit is infringed: the actual controller and management privately violate the rules of borrowing and guarantees Invasion,compensation and performance compensation after delisting are not in place,investors bear the loss of stock price drop;third,the rights protection environment is infringed: the internal control of the company is invalid,and external supervision and intermediary institutions are insufficiently protected by investors.There are many reasons for these violations.First,the reasons for listed companies: the lack of internal control of the company leads to the existence of interests of large shareholders;the second is the external supervision and institutional reasons: the information disclosure system is not perfect,the external supervision system is imperfect,In the delisting procedure,the risk warning and delisting periodsystem is invalid,the small and medium investors compensation and litigation system are absent,and the relevant intermediary institutions such as the firm are derelict;the third is the investor’s own reasons: neglecting the risk of blind investment and speculative psychology.According to the conclusions obtained,this paper puts forward corresponding suggestions on how to protect the rights and interests of small investors in the process of delisting: listed companies should strengthen internal control and form effective constraints on actual controllers and major shareholders;regulators should improve and refine information disclosure of listed companies protection mechanisms for small and medium-sized shareholder litigation and relief,and joint agency liability;small and medium investors should enhance their risk awareness and awareness of rights protection.