A Study On The Warrants Regulation Rules

Warrant is a derivative security that gives the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain frame. Financial innovation has maintained rapid development in China capital market since the year 2005, warrants come back to China to meet the need of equity division reform and diversification of stock products. Financial innovation brings the reform of legal rules. In order to keep the healthy development of warrants market, the regulation of warrants issuing and trading becomes the focus of the scholar and relative people. The author tries to use the comparative way to do the research on warrants regulation rules. The article insists of four parts:In the first part, warrants will be introduced in summary, which includes the concept, elements, categories and the analysis of legal theory, legal character, lega relations and legal risks.In the second part, the warrants regulation rules in foreign countries will be discussed. Considering the history and the regulation experience, four countries and districts are chose: Hongkong, Taiwan, German, Singapore. At first, the comparison of their legal theories will be concerned,which contain the legal status, philosophy and the main points of supervision, then we get the conclusion: the key of supervision is the management in qualification of issuer and the prevention of market manipulation. The following comparisons will focus on the issuing, information disclosure and trading regulation.The third part is related to the marketing practice and the legislation situation in Chinese capital market. Through review of the history, the lesson is summarized; and then the development of warrants in present stage is introduced, finally the flaws of present regulation rules are pointed out.In the fourth part, the advices and conceives about the actualizing the system of warrants in china will be brought forward. In the pattern of "strictly risk control", the advices, which mainly base on the foreign legal rules and the Chinese experience, are given in the issuing, information disclosure and trading regulation.