ADVOKS GLOBAL · KENYA
The Capital Markets (Collective Investment Schemes) Regulations
48. Creation of shares during initial offer
Edition: 2022-12-31 · In force
48. Creation of shares during initial offer
(1)The fund manager shall create or in the case of a unit trust, instruct the trustee to create shares in the scheme at the beginning of the first day of business in the initial offer period and during the period.(2)At or before, the beginning of the day referred to in subregulation (1) the fund manager must irrevocably choose, in respect of that initial offer, to proceed either under paragraph (3)(a) ('up and running') or under paragraph (3)(b) ('pay over and wait') and in the case of a unit trust, notify its choice to the trustee.(3)Where on any business day during the period of initial offer the fund manager assumes any obligation to issue shares, it must, depending on its choice under paragraph (2), either—(a)create shares or instruct the trustee (in the case of a unit trust), at the beginning of the next business day, to create shares in the scheme in such number at least as will enable the fund manager immediately to fulfill that obligation, whether from the shares so created or from other shares; or(b)proceed as follows—(i)pay to the custodian or trustee (in any case where the purchaser has sent a remittance) on the day of receipt of the remittance or on the next business day, the total amount (or the total amount less the total of the fund manager's preliminary charge, if any, in respect of those shares); and(ii)as soon as the period of the initial offer has come to an end, create shares or in the case of a unit trust, instruct the trustee to create shares in the scheme in such number at least as will enable the fund manager to fulfill its obligation to issue shares whether from the units so created or from other shares.(4)The instructions given by the fund manager to the trustee shall state, in relation to each type of share to be created, the number to be created, expressed either as a number of shares or as an amount in value or as a combination of the two.(5)The trustee must create shares on receipt of instructions by the fund manager given under this rule, and must not, during an initial offer create shares otherwise.