On The Perfection Of Legal System Of Direct Investment Supervision In Securities Companies

Direct investment business of securities company is emerging business. It has been eight years since CITIC securities and China International Capital Corporation to carry out the pilot direct investment business approved by the China Securities Regulatory Commission in September 2007, but Regulatory law is less, only《Direct Investment Business of Securities Company Pilot Guidance》,《Direct Investment Business of Securities Company Regulatory Guidance》, 《Direct Investment Business of Securities Company Specification Guidance》. There are many problems in direct investment business of securities company, such as the interests of the transportation problems, moral risks and so on. The imperfect legal system is the root of these problems. On the one hand, the legal system is mainly for administrative rules and industry standard; on the other hand, the legal system has to be perfected.There are both risks and benefits in direct investment business of securities company. The risks of financial markets is one. The direct investment business is carried out by Direct Listing Company of Securities Company. There is risk isolation between Securities Company and Direct Listing Company.The independence of the listing company cannot be guaranteed, and the involvement of financial holding companies lead to interests of the transportation problems. The risks of market participants is another one. Direct investment is equity investment, everything will lose if investment failed. So strict regulation of direct investment is very necessary. But the legal system is not perfect, so the discussion is very meaningful.This article is based on the problems and challenges exiting on the direct investment business,and analyzes the regulatory law of direct investment business. This article is mainly divided into the following seven parts:The first part: the introduction. The reason and meaning of this article. The research status at home and abroad, writing ideas and methods and so on.The second part: Theoretical basis of financial and direct investment regulatory.The third part: overview of the securities company’s direct investment. definition、business scope、funding source and model of the direct investment.The fourth part: the legal law of securities company’s direct investment of our country.The fifth part: reference for analysis of relevant national legal system, such as United States, Britain and Japan.The sixth part: the suggestion of how to perfect the legal law of securities company’s direct investment law, mainly include perfecting the system of market access and market exit system, perfecting the supervision legal system of securities companies direct investment, perfecting the legal system of prevention and control of the indemnification as well as suggestions on law enforcement.The seventh part: conclusion.