[3.15 education on investor protection] Take care of holding stock on behalf of others

      Ma, the actual controller of a listed company, signed the Investment Advisory Agreement with a number of equity investment companies and entrusted them to look for investors in the name of the company's urgent need for working capital and its preparation for a share listing. Equity Investment Company assigns publicity team, specifically operates to plan promotion matters. On the one hand, the publicity team employs a large number of agents to recruit non-specific individuals into the group by setting up wechat groups or QQ groups; on the other hand, it employs stock lecturers and analysts to set up a live webcast room, to investors analysis of the new third board stocks, stock tips, exaggerated publicity and forecast the listing of listed company stocks in a shares may encourage investors to buy the listed company stocks. In order to gain investors' trust, the listed company's actual controller also promises to investors that if the listing fails or can not be listed as scheduled, they will buy back the listed company according to the agreement, which reduces the investors' risk consciousness to some extent. The shares of the investor shall be held by the actual controller of the listed company and an agreement for holding shall be signed. It has been verified that the listed company, in the name of listing on the stock market, through false propaganda and promotion, by increasing capital and expanding shares and transferring shares, it issued more than 9 million shares to more than 500 investors and illegally raised more than RMB100 million.
      In this case, the listed company colluded with the Equity Investment Company that does not have the securities business qualification, and in the name of going public, fabricated or exaggerated the company's business performance and profit prospects after going public, to attract investors outside the trading place through the "Equity Holding" way to buy listed company shares. "Equity Holding" is one of the common ways that unqualified investors want to participate in stock trading in the new third board market. According to the relevant provisions of the company law and the contract law, if the holding agreement is set up to avoid the mandatory provisions of laws and administrative regulations, the holding agreement may be deemed invalid and easily lead to legal disputes.
      Investors should pay special attention to the following five points when they participate in the trading of the New Third Board market: First, they should open securities accounts and capital accounts with their real names, entrust securities companies approved by the Securities Regulatory Agency under the State Council to set up, apply to the National Equities Exchange and Quotations to buy or sell shares in a listed company. Second, we should know the proper requirement, understand the investment threshold, choose the appropriate investment target according to our own actual situation, and be alert to the disputes that may arise when we entrust others to hold the equity because of not meeting the investment requirement. The third is to understand the stock risk characteristics of listed companies, to maintain a rational and prudent investment mentality, do not be confused by any high return verbal commitment. Four is to be highly vigilant through the wechat group, QQ Group, live broadcast room and other ways to recommend the situation. Fifth, we should learn to protect our own rights and interests through legal means, pay attention to the preservation of evidence related to transactions, and prepare for the right to defend after the fact. (From China Securities Regulatory Commission)