CIR 8.6.1 Guidance

Past version: effective from 11/07/2010 - 17/12/2018
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1. Where not specified in the Prospectus, the maximum period between dealing days for a Public Fund will depend on the reasonable expectations of the target investor group and the particular investment objectives and policy of the Fund.
2. Capital reductions or share buy-backs that occur in a closed-ended Fund are not treated as redemptions and resales of Units of Funds based on NAV in the same manner as occurs in the case of an open-ended Fund as provided in these Rules.
3. The circumstances in which a Fund Manager may withhold redemption proceeds under (3) include where there are any dues from the redeeming Unitholder, such as under any margin lending arrangements.
4. See Article 37 of the Law for provisions dealing with suspension of dealings of open-ended Funds.
5. Although no redemption provisions are prescribed for Exempt Funds, it does not mean that an Exempt Fund cannot be structured as an open-ended Fund. If structured as an open-ended Exempt Fund, the applicable redemption procedures (such as the manner and frequency of redemptions) would generally be set out in the Fund's offer document (i.e. the Information Memorandum). The Fund Manager would need to comply with such redemption procedures.
Derived from RM72/2010 (Made 11th July 2010). [VER13/07-10]