How does capital allocation constitute a crime?

1. How does capital allocation constitute a crime?

How capital allocation constitutes an illegal crime needs to define two elements:

(a) whether the share allotment belongs to the securities business;

(2) Whether it has been approved by the China Securities Regulatory Commission.

The Notice of the Supreme People's Court, the Supreme People's Procuratorate, Ministry of Public Security and China Securities Regulatory Commission clearly states: "Any unit or individual operating the securities industry must be approved by the China Securities Regulatory Commission. Without approval, securities business is illegal and should be banned; Anyone suspected of committing a crime shall be investigated for criminal responsibility for the crime of illegal business operation. "

Satisfying the above two requirements is suspected of illegal business operation.

According to Article 225 of the Criminal Law of People's Republic of China (PRC), the crime of illegal business operation.

Whoever, in violation of state regulations, commits one of the following illegal business operations and disrupts the market order, if the circumstances are serious, shall be sentenced to fixed-term imprisonment of not more than five years or criminal detention, and shall also, or shall only, be fined not less than one time but not more than five times the illegal income; If the circumstances are especially serious, he shall be sentenced to fixed-term imprisonment of not less than five years, and shall also be fined not less than one time but not more than five times for illegal gains or confiscation of property:

(a) operating a franchise or monopoly commodity or other commodities whose operation is restricted by laws and administrative regulations without permission;

(2) buying and selling import and export licenses, import and export certificates of origin and other business licenses or approval documents stipulated by laws and administrative regulations;

(three) without the approval of the relevant competent departments of the state, illegally engaged in securities, futures, insurance business, or illegally engaged in fund payment and settlement business;

(four) other illegal business activities that seriously disrupt the market order.

Second, is it legal to provide capital allocation?

In judicial practice, courts usually handle civil disputes arising from stock matching agreements according to the following standards:

(1) When the settlement period of the contract expires and the market value of the shares in the fund-raising account fails to reach the stock liquidation line agreed in the contract, the people's court shall support the financing party's request to the fund-raising party to return the deposit and investment income as agreed in the contract.

(2) After the compulsory liquidation of shares, if the financing party requests the raiser to bear civil liability, it shall be handled according to the following circumstances:

1. The people's court will not support the investor's forced liquidation according to the contract, and the financier requests the investor to return the deposit or compensate for the losses.

2. If the fundraiser unilaterally changes the password of the fund-raising account or causes the financier to be unable to operate the fund-raising account in other ways, and the fundraiser fails to close the position forcibly according to the contract, and the financier requests the fundraiser to bear the difference loss between the stock closing line and the actual loan principal and interest expenditure, the people's court shall support it. However, the investor can prove that it is a market risk, and it is impossible to force the liquidation because of the technical failure of the operating system caused by no fault of either party.

(3) If the market value of the stock touches the liquidation line, the fund raiser fails to liquidate the stock according to the contract, or the fund raiser cannot liquidate the stock according to the contract due to market risk or technical failure of the operating system, and the fund raiser sues the financier for compensation for the insufficient loss after deducting the actual loan principal and interest expenses and the actual liquidation market value of the stock, the people's court will not support it.