| Insider trading is a kind of illegal securities behavior that makes use of information advantages to make profits.It destroys the fair and just trading standards of the market and seriously damages the confidence of investors in the securities market.For listed enterprises and market investors,insider trading will disrupt the market order and damage the legitimate interests of all subjects.The legal liability of insider trading in the securities market in China mainly adopts administrative liability and criminal liability.Civil liability is too principled in legislation,so the relief of civil rights is obviously insufficient in law enforcement and judicature.At present,China’s civil compensation liability for insider trading belongs to compensatory compensation liability.Compared with the cases of insider trading punished by China Securities Regulatory Commission,there are few civil compensation litigation cases for insider trading.The main reason for the low prosecution rate and win rate is that the compensatory compensation is insufficient and the deterrent is not strong,which leads to the low enthusiasm of investors to protect their rights and can not fill the intangible damage caused by insider trading.Therefore,it is necessary and urgent to establish a punitive compensation system for insider trading.Compared with the actual losses suffered by investors and listed enterprises,the amount of punitive compensation is much higher than the actual losses suffered by them,which has the functions of compensation,punishment and deterrence.High compensation can not only fill all the losses of investors,but also include litigation costs and other expenses.It can also effectively maintain market order and effectively deter insider traders from committing similar acts or potential offenders from committing similar acts.Market investors and investor protection institutions damaged by insider trading are qualified plaintiffs in insider trading punitive damages litigation,and qualified defendants are insider trading subjects who bear the sole or main responsibility in insider trading compensatory damages.The theoretical basis for establishing the punitive damages system is the deterrence theory,and based on the optimal deterrence theory,it is considered that the calculation standard of punitive damages should be less than three times of the loss of the injured investor or the gain or loss avoided by insider trading. |
