The basics of justifying regulation in the face of capital market violations

Capital market violations are numerous and the models of dealing with them are different. judicial model, quasi-judicial model and administrative model are the most common models of dealing with violations. Regulation is the chosen model of this article. An agreeable model between capital market activists, they have determined the authority of the regulator to establish and apply disciplinary punishment in this area. In this model, the authority of the regulator in facing capital market violations and crimes has granted by individuals and by their will. For this reason, the capital market regulator, i.e., Securities and exchange organization, must be a non-profit and non-governmental institution in order to fulfil its goal. The legislator's clarification on the powers of securities and exchange organization in the law is also a kind of emphasis on a clear matter. Only effect of passing an act is the official recognition of such an institution. Then not mentioning the powers in the law will not harm the authority of this institution. Securities and exchange organization, as the capital market regulator, has the necessary tools to achieve the goals of its formation, which these tools include regulation, imposing and applying disciplinary punishments. Therefore, establishing and applying disciplinary punishment for the violators of this field has no conflict with the criminal principles and rules, as well as the principle of separation of powers.