Supreme Procuratorate: private equity funds shall not be self-financing in a disguised form or publicize to the public.

[Supreme Procuratorate: private equity funds shall not be self-financing in a disguised form and shall not publicize to the public] the Financial Associated Press, 13 June (FAP)-- the Supreme Procuratorate issued 44 batch of guiding cases with financial crimes as the theme. In response to a reporter's question on the 44th batch of guiding cases, the person in charge of the fourth Procuratorate of the Supreme people's Procuratorate said that private equity funds are a way of non-public fund raising, which is obviously different from public offering activities. The issuance and sale of private equity funds must be carried out in accordance with the rules and regulations, and shall not break through the bottom line of "private placement". The above-mentioned responsible person pointed out that the key point to distinguish between legal private placement and illegal fund-raising is that private equity funds shall not be self-financing in disguise, shall not publicize to the public, shall not promise no loss or minimum income, and shall not raise funds from units and individuals other than qualified investors, and the cumulative number of investors in a single private equity fund shall not exceed the prescribed number. For example, the interim measures for the Supervision and Administration of Private Investment funds clearly stipulates that the cumulative number of fund share holders shall not exceed 200. The above-mentioned prohibition of sexual acts in the process of raising funds at the same time violates the relevant laws and regulations on the management of private equity funds, it also violates the provisions on the prohibition of illegal fund-raising such as the Law of the people's Republic of China on Commercial Banks and the regulations on the Prevention and disposal of illegal Fund-raising, which is no longer an act of "private fund-raising", but illegal fund-raising and should be cracked down on in accordance with the law.