The Neoindustrial Tools for the Turnover of Book-Entry Securities: Digital Technologies for Implementing and Protecting the Rights of Investors and Issuers

Abstract

Introduction: the paper is devoted to the study of economic and legal bases of regulating the turnover of assets in the book-entry securities market, in which transactions of purchase and sale of stocks, bonds, and other instruments are implemented by different subjects of economic relations falling within the jurisdiction of the Russian Federation and foreign states. Methods: the methodological framework for the research is the method of historical materialism, the dialectical method, as well as such general scientific methods of knowledge as analysis, synthesis, hypothesis, analogy, and etc. As specific scientific research methods the comparative legal and functional methods were used. Results: the turnover of assets in the book-entry securities market is studied in the paper as a special channel for financing the economy. The main functions of the market of book-entry securities and their impact on the relationship of all participants of the securities market, among which the main ones are issuers and investors, are defined. The paper shows the vector of transition from a labor-intensive and resource-intensive method of protecting the right - vindication of shares. The categories and roles of investors, their behavior in the securities market, as well as a number of requirements that apply to all investors within the territory of the Russian Federation are compared. The popular mechanisms for protecting the rights of investors are studied. The role and legal possibilities of a vindication claim are analyzed as the main method of protecting the rights. The evolution of the society’s movement to the “Industry 4.0.” format and the application of an innovative method of investment using digital cryptographic records are considered. Conclusions: it is proved that the development of ICO investments is continuing rapidly, and capital investment using this tool is increasing due to attracting a new circle of investors. It is proved that the growing popularity of ICO will lead to the development of the technical “base” of the financial instruments market, strengthening the crypto protection of smart contracts and transactions within their execution, which will eventually make digital cryptographic records used to finance foreign trade transactions habitual investment tools, as well as change the position of individuals and legal entities in the market of bookentry securities, namely, in the process of protecting corporate rights. As a result of the research, it is recommended that the legislation in the field of the stock market provide a preventive method of electronic blockchain registration of jural facts and transactions with book-entry securities, which will avoid fraudulent actions by unscrupulous shareholders, as well as strengthen the rule of law in the execution of public (tax) obligations. The recommendations are made to improve the current legislation; the amendments to Article 149.3. “Violated copyright protection” of the Civil Code of the Russian Federation are proposed; a new version of the Article is given.