The securities watchdog will shortly include fresh guidelines to the ongoing listing rules to facilitate close ended unit trust.
The move comes after the Securities & Exchange Commission (SEC) unveiled a new code for mutual funds which included issuing licenses for close ended unit trusts.rn
rnA close-ended fund or scheme has a stipulated maturity period and is open for subscription only during the specified period. rn
rnPeople can invest in the Fund at the time of the initial public issue and thereafter trade on the units they hold through the stock exchange, where the units are listed. rn
rnIn the case of the present open-ended scheme, investors liaise directly with the mutual fund for investments and redemptions at the related net asset value (NAV) price.rn
rnBut in the case of a close-ended scheme, the market price on the stock exchange could vary from the schemes NAV, depending on the demand and supply situation. Investors could also approach any stockbroker to cash their units, without