What is the serious need of the commercial law to be revised/ what is the reason for capital market violations?
According to Tejarat News, the stock market is not doing well these days. Seyyed Mohammad Reza Hosseini, a legal expert of the capital market, in a conversation with Tejarat News about the violations of the capital market, said: In relation to the crimes in this market, it should be seen whether the problem is the lack of deterrence of the laws, or whether it is related to the ambiguity in how to determine the examples of crimes. According to him, the need for reform Business Law It is strongly felt.
Hosseini said: To the extent that the examples of crimes are fully and clearly defined in the organization’s guidelines, violations will also decrease. On the other hand, it seems that before intensifying the punishment, attention should be paid to the preventive technical measures of the organization and other regulatory departments.
This capital market legal expert stated: Based on the conflicts of interests that are sometimes observed in the capital market, the possibility of crimes occurring among legal entities is more than that of natural persons. The reason can be considered their access to some confidential information.
Hosseini added: The meaning of conflict of interests is the mutual ownership of different companies and the existence of parent companies with numerous subsidiaries. Also, holding the position of some persons involved in the supervision of subsidiaries is also considered as a kind of conflict of interest.
Requirement to amend the Commercial Law
He said: Considering that 50 years have passed since the amendment of the Commercial Law regarding joint-stock companies and the development and advancement of technology and electronic systems, therefore, many matters related to company registration and their administration should also be amended.
This capital market legal expert emphasized: In terms of the legal order, violations and crimes related to the capital market are considered in the securities market law. As a result, referring it to the commercial law is not correct. However, regarding violations and crimes related to persons related to joint-stock companies, the existing system in the current business law needs to be reviewed.
The role of the stock exchange organization in creating transparency
Hosseini stated: The Stock Exchange Organization, as a plaintiff and judicial officer, follows up the cases related to crimes until reaching the final result in competent courts. For this reason, in addition to the report of finalized cases, the organization should also clarify the process of dealing with these cases. In this case, market participants will be assured of realizing their rights by knowing about this clarification. At the same time, they ensure the organization’s support for the health and integrity of the market.
This legal expert of the capital market said: In addition to the subject of the commercial law, regarding the courts dealing with cases of stock market crimes, it is usually based on the opinions of independent experts. Also, taking into account the reports of the Stock Exchange Organization as the body supervising the capital market can increase the accuracy of the votes. This issue also provides the defendant’s rights to a high level.
He stated: Therefore, stock market activists and experts expect from the judiciary and the Securities and Exchange Organization that at some point in time, after issuing the votes, they will publish the issued votes by removing the details of the individuals. In this case, lawyers and jurists can also help the judicial system and the stock exchange organization in analyzing and reviewing these votes. This ultimately makes there is no deficiency in the ruling procedure.