The protection of small and medium investors has always been the focus of the capital market. Can the investor protection institutions with official background eliminate the barriers for small and medium investors to obtain corporate information and achieve the purpose of supervising corporate behavior?Taking A-share listed enterprises as the research object, this paper uses the differential model to investigate the governance effect of investor service center’s shareholding exercise on corporate violations. It is found that the shareholding and exercise of the investor service center has a significant inhibitory effect on the illegal behavior of enterprises. The function channel test shows that the shareholding exercise of investor service center reduces the tendency of enterprises to violate rules by improving the internal information environment of enterprises and restraining the hollowing out of major shareholders. Further analysis shows that: the shareholding and exercise rights of investor service center significantly reduce the serious violations of enterprises, but have no obvious impact on the general violations of enterprises; The governance effect of investor and service center’s shareholding and exercise on enterprise violation is more obvious in enterprises with low internal control quality, state-owned enterprises and enterprises with weak media supervision. The research shows that as an effective corporate governance mechanism, the shareholding and exercise of investor services center can have a deterrent effect on enterprises and exert the effect of supervision and governance. It has become a useful supplement to administrative supervision and other external supervision.