PROTECTION OF THE RIGHTS OF INVESTORS
PROTECTION OF THE RIGHTS OF INVESTORS IN THE STOCK MARKET
The investor is a natural or legal person who invests personal, borrowed or raised funds in investment projects. The investor has the right to independently determine the volume, nature, performance of investments as well as to verify use of these funds.
The legislation clearly reglementary the position of investors in the Russian market. These relations are governed by Federal law No. 46-FZ of 05.03.1999 G. “On protection of rights and legitimate interests of investors on the securities market”, Federal law No. 39-FZ dated 25.02.1999 g. “On investment activity in the Russian Federation implemented in the form of capital investments” and other normative-legal acts. Investments are in both domestic and foreign. Protection of foreign investment are regulated by the Federal law No. 160-FZ dated 09.07.1999 G. “On foreign investments in the Russian Federation” The Convention on the rights of the investor, concluded in Moscow 28.03.1997, and also other normative-legal acts.
Protection of the rights and legitimate interests of investors on the stock market is in the complaint and court order.
A common sign of investors ‘ rights protection is the judicial settlement of disputes.
Protection of the rights and legitimate interests of the Federal Executive authority on securities market, carried out in order to court with the claim in protection state and public interests and lawful interests of investors, and also about liquidation of legal entities or termination of activities of individual entrepreneurs performing professional activities on securities market without a license, cancellation of securities issue, recognition of securities transactions null and void, and in other cases, established by the legislation of the Russian Federation on protection of rights and legitimate interests of investors on the securities market.
Also in the investment and stock market terminology there is the concept of “trader”.
Traders is a stock trader that analyze the current situation on the market and makes profitable trading transactions. Usually refers to trading in securities, stocks, bonds, futures, options) on the stock exchange.
Traders also referred to as dealers in the foreign exchange and commodity markets.
There are several types of traders:
- Day traders (a day trader) — their deals usually do not last more than one trading day. On the market most of trading is during the European and American session.
- Positional traders Forex make trades lasting a few days. This period is optimal to predict most of the movements based on news.
- Scalper, the Scalper — a kind of day traders who make a large number of transactions of short duration from a few seconds to ten minutes (scalping). As a rule, the performance of individual transactions is small, but a large number of transactions.
- A medium-term trader — makes a few trades per year, closes positions at change of weekly trends
- Long term trader the trades can last for several years, closes positions at change of global trends.
Note that traders work with their clients on a contractual basis. Unfortunately, the risks of the stock markets is very high and the financial situation is very dynamic.
The investor can simply lose their money. In the case that financial losses occurred due to the lack of professional actions of the trader, the investor has the right to protect their financial interests.
In the legislation of the Russian Federation there are a number of legal norms protecting the rights as a national investor and a foreign investor.
Lawyer Alexander Nikitina A. will help You protect against unscrupulous traders.
Advocate provides consulting support, will help to prepare a claim, the statement of claim. Your interests may also be represented in court at any stage of the process.
PROTECTION OF RIGHTS OF INVESTORS ON SECURITIES MARKET
The securities market is an integral part of the financial market where operations of purchase and sale of securities.
The securities market in Russia still has a fairly complete legal framework, organizational and informational structure.
Note that the essential problem of the Russian securities market is the lack of adequate numbers of highly qualified specialists who would be able to provide efficient work of subjects of the securities market, such as investment companies, stock exchanges, OTC trading system of securities information, consulting and analytical organizations and departments, mediation, and efficient brokerage structure.
As for the protection of investors on the securities market, it should be noted that, by itself, the investment relationship are a type of private legal relationship, and so it bears all the hallmarks of civil law relations. Therefore, the ways of protection of rights of investors on securities market are the same as for other civil law relations.
The main form of production for the protection of the rights of investors in the securities market is the proceedings, as in civil and arbitration process. Most disputes of this category within the jurisdiction of arbitration courts.
If we turn to the proprietary methods of protection, here the owner of securities is strictly opposed to definitely an obligated person Issuer. Therefore, the rights of holders of the securities, such certificated securities may be waived by the Issuer and must be protected from violations on the part of the person.
More complicated is the situation with the protection of the rights of owners of securities of securities as an object of law. The right to security is absolute and therefore can disrupt an indefinite circle of people. as certificated securities are things, therefore, the right way to protect proprietary methods and, above all, the vindication production (i.e., by reclamation from another’s adverse possession). Although there can be some difficulties. For example, if certificated securities are registered, the account of them being either in the registry or in the Depository. Be transferred such securities can only be in the order of transfer and, accordingly, to request the certificate for such certificated securities may only the person named in the register of holders of registered securities or the Depository. The use of vindication in the field of securities is fairly limited as to vindicate only certificated securities which are bearer shares, the vindication of which is from a bona fide purchaser is prohibited by law.
Lawyers in the field of securities we can offer You:
- consulting support;
- participation in negotiations, pre-trial settlement of disputes;
- preparation of applications/complaints to the FFMS (Federal financial markets service);
- claims preparation of claims;
- representation of interests in courts of General jurisdiction and in arbitration courts.
Lawyer Alexander Nikitina A. provides a range of legal services to protect the rights of their clients involved in civil legal relations on the securities market.