ADVOKS GLOBAL · KENYA
The Capital Markets (Collective Investment Schemes) Regulations
57. Cancellation of shares
Edition: 2022-12-31 · In force
57. Cancellation of shares
(1)Where the fund manager wishes that shares be cancelled, it shall cancel such shares and in the case of a unit trust, instruct the trustee to cancel such shares; and any instruction given by the fund manager shall state, in relation to each type of shares to be cancelled, the number to be cancelled, expressed either as a number of shares or as an amount in value or as a combination of the two.Provided that at any moment of such instruction the fund manager shall not have any outstanding obligation to issue shares, which by cancellation of shares, would prevent the fund manager from fulfilling any such instruction.(2)The trustee shall cancel the units on receipt of instructions given by the fund manager.(3)On cancellation of shares and on delivery to the custodian or the trustee as the case may be of such evidence of the title to those shares, as the custodian or trustee may reasonably require, the custodian or the trustee shall, within two business days of the instructions given by the fund manager pay the repurchase price of the shares—(a)to the person who was the holder of those shares; or(b)in accordance with the relevant provisions of the information memorandum, trust deed and incorporation documents.