What Is Involved in Insider Trading Regulation?

Insider trading means that insiders buy or sell securities or help others based on inside information, which violates the principle of "openness, fairness, and justice" in the securities market and seriously affects the functioning of the securities market. At the same time, insider trading has lost the timeliness and objectivity of the formation of securities prices and indexes. It has made securities prices and indexes a result of speculation by a small number of people using inside information, rather than the result of a comprehensive evaluation of the company's performance by the investing public. The securities market has lost its role in optimizing resource allocation and acting as a barometer of the national economy. Insider trading will inevitably damage the order of the securities market. Therefore, the Securities Law expressly prohibits such behavior.

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Insiders are those who hold securities of the issuer, or act as directors, supervisors, or senior managers in the issuer or in companies closely related to the issuer, or because of their membership, management, regulatory, and professional status. Or those who perform their duties as issuer employees or professional consultants and have access to or access to inside information. it includes:

1. Issuers' directors, supervisors, senior management, secretaries, typists, and others who can access or obtain inside information by performing their duties;

2. Lawyers, accountants, asset appraisers hired by issuers,

Insider trading actors use their special status or opportunity to obtain inside information for the purpose of profit or hedging.

In recent years, insider trading cases have the following characteristics:

Insider trading is explicitly prohibited by law in every country in the world. Although insider trading is often the same as the normal operating procedures, it is also the public trading of securities in the market, but because some people use

The crime of insider trading refers to a person who judges or is acquainted with the inside information of stocks or securities transactions or illegally obtained stocks,

"Relevant", "basic agreement" and "high agreement" will be the important basis for regulators to judge whether insider trading is established in the future.

According to the "Minutes of the Symposium on Several Issues of Evidence on the Trial of Administrative Penalty Cases in Securities" issued by the Supreme People's Court recently, the inside story

Since 2008,

On May 22, 2012, the Supreme People's Court released the Supreme People's Court and the Supreme People's Procuratorate's

Natural persons, legal persons, and other organizations that hold or jointly hold other companies with more than 5% of the company's shares through agreements or other arrangements purchase shares of listed companies. If there are other provisions in this law, the provisions shall apply.

If insider trading causes losses to investors, the actor shall be liable for compensation according to law. "

Therefore, investors who have suffered losses due to insider trading can file a civil compensation lawsuit in accordance with Article 76 of the Securities Law. ^[3]