Thursday, 25 September 2014 00:18
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The Securities and Exchange Commission (SEC) has directed unit trusts to maintain a minimum of 50 unit holders for each fund at all times.
If and when this requirement is not met due to redemption by a unit holder or any other supervening circumstances, the managing company of unit trust funds will be required to make best efforts to comply within three months from the date of the first short fall and consult the Commission forthwith.
Unit trusts are also required to obtain a minimum of 50 unit holders during an IPO period and if that is not met unit trusts will have to refund the monies collected at the close of the IPO period.
The directive will be with immediate effect. Unit trust funds existing prior to this date will be granted six months ending 31 March 2015 to comply with the continuous maintenance requirement.
There are nearly 50 unit trusts funds operating in the country.
