Quyết định 30/2006/QD-BTC

DECISION

SUPPLEMENTING THE REGULATION ON ORGANIZATION AND OPERATION OF SECURITIES INVESTMENT FUNDS AND FUND MANAGEMENT COMPANIES, PROMULGATED TOGETHER WITH THE FINANCE MINISTER'S DECISION NO. 73/2004/QD-BTC OF SEPTEMBER 3, 2004

THE MINISTER OF FINANCE

Pursuant to the Government's Decree No. 77/2003/ ND-CPofJuly 1, 2003, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;
Pursuant to the Government's Decree No. 144/ 2003/ND-CP of November 28, 2003, on securities and securities market;
At the proposal of the chairman of the State Securities Commission,

DECIDES:

Article 1.- To supplement Article 12a prescribing public funds' increase of capital to Chapter II of the Regulation on organization and operation of securities investment funds and fund management companies, promulgated together with the Finance Minister's Decision No. 73/2004/QD-BTC of September 3,2004, as follows:

1. Conditions for public funds' increase of capital

a/ The increase of capital is provided for in the fund's charter;

b/ The fund operates at a profit for two consecutive years prior to the year it applies for permission for capital increase;

c/ The fund management company neither faces any administrative sanction nor commits any criminal violation within two years;

d/ Fund certificates are issued to the fund's current investors under the form of the right to buy fund certificates. The fund certificate price for the fund's current investors is decided by the investors' congress on the basis of the fund's net asset value.

e/The plan on additional issuance of fund certificates must be fair and transparent, protect the investors' benefits, observe law provisions and be approved by the investors' congress.

2. Dossiers of application for permission for public funds' increase of capital

2.1. Dossiers of application for permission for public funds' increase of capital shall consist of:

a/Application for permission for public funds' capital increase;

b/ The draft prospectus which clearly describes the plan on additional issuance of fund certificates and the plan on the use of capital raised from the additional issuance of fund certificates;

c/ The resolution of the investors' congress approving the increase of capital and the plan on additional issuance of fund certificates to increase capital;

d/ The issuance-underwriting contract (if any);

e/ The financial statements for two consecutive years before the year the fund applies for permission for capital increase certified by an independent audit institution. In case the duration from the end of the year covered by the latest financial statements to the time of filing the dossier of application for permission for the fund's capital with the State Securities Commission exceeds 90 days, the fund management company shall submit the fund's additional financial statement up to the latest quarter;

f/ Certification of the supervisory bank on the public fund's observation of current laws.

2.2. Within 30 working days from the date of receiving valid dossiers, the State Securities Commission shall issue written notices on the acceptance of the public fund's increase of capital. In case of refusal, the State Securities Commission shall issue written replies, stating the reasons.

3. Distribution of fund certificates

Fund certificates issued additionally shall be distributed according to Article 7 of the Finance Minister's Decision No. 73/2004/QD-BTC of September 3, 2004, promulgating the Regulation on organization and operation of securities investment funds and fund management companies.

4. Report on result of the public fund's drive of capital increase

Within 10 working days from the closing date of the additional issuance of fund certificates to increase capital, the fund management company shall report on the result of the issuance drive to the State Securities Commission according to Article 9 of Decision No. 73/ 2004/QD-BTC and announce in the mass media the total number of fund units sold, the number of investors owning fund units, and the total additional capital raised. The fund management company shall disclose information on the securities investment fund according to the Finance Minister's Circular No. 57/2004/TT-BTC of June 17,2004, guiding the disclosure of information on the securities market.

Article 2.- This Decision takes effect 15 days after its publication in "CONG BAO."

Article 3.- The chairman of the State Securities Commission, the director of the Office of the Finance Ministry, fund management companies and concerned parties shall have to implement this Decision.