CmaBylaw
Executive Bylaws
1-7 Prohibitions on Collective Investment Schemes Of Module Thirteen: Collective Investment Schemes
Section: Chapter One: General Provisions
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Sunday, 12 February 2017
A Collective Investment Scheme is prohibited from carrying out the following: 1. Grant credit. 2. Purchase any Securities issued by the company managing the Collective Investment Scheme or any of its Subsidiaries, except to the extent of the rules established by the Law and the Bylaws in this regard. 3. Purchase any Securities of the entity, where the Collective Investment Scheme’s Manager is acting as the subscription manager or sales agent, except to the extent of the rules established by the Law and the Bylaws in this regard. Investment Wakalah or other agreements that involve giving monies to third parties to use them in commercial activities thereof, shall be considered as credit prohibited to be practiced by Collective Investment Schemes, excluding deposits at banks and unless such agreements serve as a Debt Instrument or financial instruments set for sale at the Primary Market or the Secondary Market.
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