Study West Sheng Illegal Business Case Issues

In the context of the global economic development, China’s securities market is also growing and gradually to mature, professional direction, With the ordinary investment demand unceasing enhancement, the existing securities trading market has not meet the investment needs of investors. Coupled with the relaxation of the provisions of the equity transfer in the law and to allow the stock trading outside the stock exchange of securities, the over-the-counter market comes into being.But the OTC market in China now faces a huge challenge:The illegal sale of original often occur in society, in some areas appear even spread. Although our country has a relatively perfect system of floor trading system at present, there is few system on the regulation of OTC trading market, lack of legal position for property rights trading center, in the "original stock" sales a semi-market even lack of strong regulation. It is because of the absence of the regulatory system so that the semi-market abnormally developed. The region property rights trading system is not uniform, local governments act on their own way. In front of the temptations of the great benefits, some companies dare to take risks, the phenomenon of illegal sale in a semi-market becomes more and more serious. In recent years, some companies in the name of investment consultancy corporation, Property management company or specify the transactions of property rights application procedures in the form of its business license. Take advantage of investors do not understand the original stock, using the member seat of property rights trading center, announce the original stock will be listed on the nation and foreign market, and then the stock will be multiplied several times, By this means illegal sales of the original stock to the social masses and possession of the resulting price, when investors perceive later to pursue is often too late and it is hard to make up for the loss caused. That behavior has seriously affected the social stability and healthy development of the securities market. This article takes the form of case analysis report, Choose three classic case, there are XiSheng illegal business case, MeiZhong original sale case, BaiDai illegal business case. As the object of these three cases, combination of the focus of the legal issues in the case, the legal and factual analysis, and ultimately the formation of the report. These companies use the member of the property rights trading center seats or property transaction agency qualification, claimed that stock will be listed at nation or foreign market and then you can get high returns, and commitment to return the money to investors if the stock not listed. However, the reality is that a few years later, the stock had not only listed but the amount of investment for investors had been swept away by several executives. Because of the behavior of illegal sale original hidden means, fraud. The investors is often the laid-off workers and retirees, This member do not understand the original stock, blind investment, Often resulting in a great loss to the family, If you do not properly handle the original stock scam will lead to social conflicts, social unrest. This article focuses on the XiSheng, illegal business case as the core, from Unlisted equity transfer qualifications, Unlisted equity transfer legal, Constitute the crime of illegal business and convicted and punished four aspects analyzed the problem in such cases, legal Causes of the problem and put forward suggestions for improvement based on current laws and government policies, in order to Curb and combat the behavior of illegal sale original stock. Strive to improve our current OTC market regulatory, to provide a safe and efficient investment environment for the majority of investors.