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MKT 2.1.1 Guidance

1. By virtue of Article 10(1) of the Law, a Person making an Offer of Securities to the Public in relation to Units of a Fund is exempt from the requirements in Part 2 of the Law and the Rules made for the purposes of that Part which deal with Prospectuses.
2. Article 10(2) of the Law requires a Person having or intending to have Units of a Fund admitted to trading on an Authorised Market Institution to comply with Part 2 of the Law and the Rules made for the purposes of that Part in the manner and circumstances prescribed in the Rules. Chapter 6 contains the requirements that apply to a Person who applies to have, or has or had, Units admitted to trading on an Authorised Market Institution.
4. The DFSA has the power, pursuant to Article 12(1) of the Law, to prescribe certain communications to be Exempt Communications. Such communications are not subject to the prohibition in Article 14(1) of the Law as they fall outside the definition of an "Offer of Securities to the Public" in Article 12(1) of the Law.
4. The DFSA also has the power under Article 14(3) of the Law to prescribe certain types of:
a. Offers of Securities to the Public as "Exempt Offers", and
b. Securities to be "Exempt Securities".
Exempt Offers and Exempt Securities are not subject to the prohibition in Article 14(1) of the Law and hence do not require a Prospectus.
Derived from RM81/2011 (Made 30th November 2011). [VER1/11-11]