Collective Investment Schemes Control Act, 2002 (Act No. 45 of 2002) > Part XII : General > 94. Calculation of price and limitation of amount of rounding-off accrual

(1)

(a)	Subject to paragraph (b), a manager may not sell any participatory interest at a price which exceeds or is less than the net asset value of that participatory interest.

(b)	Where participatory interests in a new portfolio are offered to the public for the first time, the manager may make an initial offer—

(i)	on a specified date;

(ii)	for a specified period;

(iii)

of a specific number of participatory interests at a fixed price based on the price of the participatory interests on a previous date not more than 28 days prior to the closing date of the offer.

(2)

In making payment to the investors in a portfolio of a distribution of income accruals on the participatory interests belonging to them, a manager may round off to the nearest one cent, any amount so paid in respect of such number of participatory interests as represents the minimum number which, in terms of the portfolio’s deed, must be purchased at any one time, but any amount which by, virtue of such rounding-off, is left in the portfolio, must be carried forward to the credit of investors in the next ensuing distribution.