Sep 25, 2014 (LBO) – Sri Lanka Security Exchange Commission says the managing companies and trustees of unit trust should maintain a minimum number of fifty unit holders for each fund at all the times, the commission said in the media release. Where the minimum number if unite holders falls below the specified minimum threshold due to redemption by a unit older or any other supervising circumstance, the managing company of such fund shall make best effort for compliance within three months from the date of the first shortfall and shall consult the commission forthwith.
The directive bearing SEC / LEG /13 /11/10 dated 7th November 2013 is hereby rescinded.
The Commission reserves the right to revisit the restriction imposed by this directive as and when deemed necessary by the commission.
This decision has been taken at its 345th meeting held recently.
Accordingly managing companies and trustees of unit trust are directed to obtain a minimum 50 unit holders during an initial public offer (IPO) period and where they said minimum number is not met to refund the monies collected at the close of the IPO period.
SEC says the rules shall be effective from the date hereof and all licensed unites and trust funds existing prio