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Chapter IV
Section One
Legal
Form and Licensing |
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| Article 18 |
| (1) |
An Investment Fund
can be organized as a: |
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a. |
Company; or |
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b. |
collective
investment contract. |
| (2) |
The Investment
Funds referred to in item (1) letter a
may be open-ended or closed-ended. |
| (3) |
An Investment Fund
organized in accordance with item (1)
letter a must be Company
licensed by BAPEPAM. |
| (4) |
An Investment Fund
organized in accordance with item (1)
letter b must be managed by an Investment
Manager under Contract. |
| (5) |
Requirements and
licensing procedures for Investment Funds
referred to in item (3) shall be
determined in Government Regulations. |
| (1) |
Shareholders of
open-end Investment Funds may sell their
shares back to the Fund. |
| (2) |
When shareholders
wish to sell back their shares, an
open-end Investment Fund must buy the
shares. |
| (3) |
Exceptions to the
requirement of item (2) may be
made when |
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a. |
the Securities
Exchange where most of the Securities in
the Investment Fund Portfolio are
traded, is closed; |
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b. |
trading is
suspended on the Exchange with respect to
Securities that make up most of the
Investment Fund Securities Portfolio; |
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c. |
there is an
emergency; or |
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d. |
there has occurred
some other circumstance stipulated in the
investment management contract approved
by BAPEPAM. |
| (1) |
The Investment
Manager, as administrator of an open-end
Investment Fund in the form of a
collective investment contract, may
continuously sell and re-purchase
Participation Units, within limits
stipulated in the contract. |
| (2) |
An Investment
Manager must re-purchase the
Participation Units of holders that wish
to sell their Units. |
| (3) |
Exceptions from the
stipulation of item (2) can be
made when: |
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a. |
the Securities
Exchange where most of the Securities in
the Investment Fund Portfolio are
traded, is closed; |
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b. |
trading is
suspended on the Exchange with respect to
Securities that make up most of the
Investment Fund Securities Portfolio; |
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c. |
there is an
emergency; or |
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d. |
some other
circumstance stipulated in the investment
management contract approved by BAPEPAM
has occurred. |
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Section Two
Management |
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| Article 21 |
| (1) |
Administration of
Investment Funds, whether in corporate or
collective investment contract form,
shall be carried out by an Investment
Manager under contract. |
| (2) |
Parties to an
Investment Fund management contract with
respect to Funds in corporate form, shall
be the board of directors and the
Investment Manager. |
| (3) |
Parties to an
Investment Fund management contract are
the Investment Manager and the Custodian
bank in the case of a open-end collective
investment contract, and this contract
includes the management contract. |
| (4) |
Further regulation
of the provisions of items (2) and (3)
shall be made by BAPEPAM. |
Article 22
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| On every
Exchange day, the Investment Manager
shall determine the fair market value of
Securities in the Portfolio of an
open-end Investment Fund, whether
organized as a corporation or as a
collective investment contract, in
accordance with BAPEPAM rules. |
Article 23 |
| Net asset
value shall be the basis for evaluating
shares of an open-end, corporate
Investment Fund and Participation Units
of a collective investment contract. |
Article 24 |
| (1) |
An Investment Fund
may neither borrow nor lend money.. |
| (2) |
An Investment Fund
may not acquire shares or Participation
Units of another Investment Fund. |
| (3) |
Further
restrictions on Investment Fund
operations may be set by BAPEPAM. |
| (1) |
The assets of an
Investment Fund must kept with a
Custodian bank. |
| (2) |
Investment Funds
must calculate and publish their net
asset value. |
| (3) |
Parties to the
contract for custody of the assets of an
Investment Fund in corporate form, shall
be the board of directors and the
Custodian bank. |
| (1) |
Parties to the
contract for custody of the assets of an
Investment Fund in corporate form, shall
be the board of directors and the
Custodian bank. |
| (2) |
A collective
investment contract shall include the
custodial agreement and shall be made by
the Investment Manager and the
Custodian bank. |
| (3) |
Further regulation
regarding items (1) and (2) shall
be made by BAPEPAM. |
| (1) |
To the extent
possible, an Investment Manager must, in
good faith and in a fully responsible
manner, carry out his duties in the sole
interest of the Investment Fund. |
| (2) |
An Investment
Manager that does not carry out his
duties in accordance with item (1)
shall be liable for losses resulting from
his actions. |
| (1) |
Shares of a
corporate open-end Investment Fund have
no par value. |
| (2) |
At least one
percent of the authorized capital of a
corporate Investment Fund shall be issued
and paid-in when the fund is established. |
| (3) |
Shares of a
corporate Investment Fund may be
repurchased and resold without the
approval of the General Meeting of
Shareholders. |
| (4) |
The re-purchase of
shares of a corporate Investment Fund
shall be made from the Fund’s
assets. |
| (1) |
A corporate Investment
Fund is not required to maintain
reserves. |
| (2) |
BAPEPAM shall
determine the reserves that may be
maintained by an Investment Fund. |
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